Fraud and theft running rampant on Zelle
Fraud and theft are causing some major problems for Zelle. Senator Elizabeth Warren's Office looked into the issue. Warren's Office found that data from large banks found fraud is increasing on Zelle and banks are not providing refunds.
This could be a violation of federal law. Seven of the largest banks in the U.S. own Zelle and claim it is safe. The investigation report found that an estimated $440 million was lost by Zelle users through fraud or scams just last year.
In response to the claims, Banking industry track and advocacy group "Bank Policy Institute" disputed Warren's findings. B.P.I. claims that Zelle's rivals, such as Venmo and Cashapp get more reports of disputed transactions.