Zelle succumbs to pressure, starts refunding scam victims

Zelle, the payments app, has started refunding users who were targeted by scammers after years of refusing to do so. Zelle's network operator, Early Warning Services (EWS), implemented a mechanism that allows banks to claw back funds from the recipient's account and return them to the sender, sparing financial partners from reimbursing potentially billions of dollars stolen by imposter scammers. The change goes beyond legal requirements and aims to protect users from imposter scams, which have become the most-reported scam across all payment methods. While Zelle's recent changes have satisfied regulators so far, Senator Elizabeth Warren urges continued monitoring to protect consumers from bad actors.