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Zelle

All articles tagged with #zelle

business5 months ago

New York Sues Zelle Over Security Failures and $1 Billion Fraud

New York Attorney General Letitia James is suing Zelle's parent company, Early Warning Services, over claims that its rushed design and poor security measures enabled over $1 billion in scams from 2017 to 2023, including inadequate verification and delayed fraud reporting, despite Zelle's claims of fighting fraud. The lawsuit seeks restitution for affected consumers and highlights ongoing regulatory scrutiny of digital payment platforms.

via The Verge|
#business#fraud#lawsuit
business5 months ago

NY AG Sues Zelle Over Security Lapses and $1 Billion Fraud

The New York Attorney General sued Zelle's parent company, Early Warning Services, alleging that the payment platform failed to implement adequate security measures, allowing over $1 billion in fraud, and failed to act on known issues despite warnings from banks and regulators. Zelle disputes the claims, asserting most transactions are scam-free, while the lawsuit seeks restitution for victims and mandates improved security protocols.

via CNN|
#business#fraud#lawsuit
financetech2 years ago

"Rising Fraud Threat: Cash Apps Under Fire for Draining Bank Accounts"

The Better Business Bureau warns that payment apps like Venmo, Zelle, and Cash App are leaving users vulnerable to fraud, with criminals exploiting the accessibility of these apps to steal money. Users are advised to be cautious about who they pay and the amount of the transaction, to use strong passwords on their phones, and to watch out for red flags such as requests for quick debt payments or assistance through payment apps, which are likely scams.

via WTVG|
#bbb#cash-app#financetech
technology2 years ago

"Rising Concerns: The Surge of Payment App Fraud Alerts Authorities"

Manhattan District Attorney Alvin Bragg has sent letters to the owners of Venmo, Zelle, and Cash App, demanding increased protections after a surge in fraud incidents involving the exploitation of these mobile financial applications. The DA cited cases of theft and robberies across the United States, urging the companies to adopt additional security measures such as transaction limits, secondary verification, and better monitoring of unusual activity. The companies have been called to meetings, and while Square Inc and Paypal, the owners of Cash App and Venmo, have not responded, Early Warning Services, LLC, the network operator of Zelle, emphasized its commitment to providing a safe and reliable service and stated that participating financial institutions are required to reimburse consumers for confirmed fraud claims.

via KABC-TV|
#cash-app#fraud#security-measures
technology2 years ago

Manhattan DA Warns of Surging Fraud Risk with Venmo, Zelle, and Cash App

Manhattan District Attorney Alvin Bragg has sent letters to the owners of Venmo, Zelle, and Cash App, expressing concern over the vulnerability of users to fraud and theft through their mobile financial applications. The DA cited a growing number of incidents involving unauthorized access to unlocked devices, resulting in significant financial losses and even physical harm to residents. Bragg demanded that the companies adopt additional security measures, including transaction limits, secondary verification, and better monitoring of unusual activity. The companies have been called upon to meet with the district attorney to address these issues.

via ABC News|
#cash-app#fraud#manhattan-da
technology2 years ago

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.

via Ars Technica|
#financial-fraud#imposter-scams#refunds
finance2 years ago

Zelle Implements Imposter Scam Refunds Amid Washington's Influence

Banks on the payment app Zelle have started refunding victims of imposter scams, reversing transfers for customers who were tricked into sending money to scammers claiming to be from a government agency or bank. The move comes after pressure from U.S. lawmakers and the federal consumer watchdog. Zelle, owned by seven banks including JPMorgan Chase and Bank of America, previously argued against refunding transfers that customers were tricked into approving. The new policy marks a major shift and aims to address concerns raised by lawmakers and protect consumers from fraud.

via Reuters|
#consumer-protection#finance#fraud
business2 years ago

Wells Fargo Faces Widespread Banking System Issues and Customer Complaints

Wells Fargo experienced issues with its banking system, including problems with fund transfers and declining ATM cards. Customers reported complaints on Downdetector, and the bank acknowledged the intermittent issues. This is the second time this month that Wells Fargo has faced widespread system problems. In addition to these technical difficulties, the bank has faced controversy in recent years, including fines for "illegal activity" and the infamous fake-accounts scandal in 2016.

via CNN|
#banking-system#business#customer-complaints
bankingtechnology2 years ago

Zelle users face deposit access issues, updates underway

Hundreds of Chase and Zelle users experienced issues accessing their bank deposits and making transfers, with over 1,500 Chase customers reporting problems. Chase acknowledged the issue and stated they were working to restore full service. Users expressed frustration online, while hackers impersonated Zelle in a complex email scheme. Chase's mobile banking app was also affected, and some users reported issues with card transactions. The bank is investing $14 billion in new technology and plans to close 21 branches. Reports of the outage continued to rise, with the majority of issues related to transfers and wires.

via The US Sun|
#banking-issues#bankingtechnology#chase
finance2 years ago

Chase Bank's Double Payment Bug Causes Online Banking Chaos

JPMorgan Chase customers have reported seeing duplicate transactions and fees on their checking accounts after using Zelle. The bank has confirmed the issue and is working to resolve it, promising to automatically reverse any duplicates and adjust any related fees. The problem is confined to Chase customers and not affecting other banks that jointly own Zelle.

via MarketWatch|
#customer-complaints#duplicate-transactions#fees