Senate Democrats sent letters to big banks on Friday, demanding that the corporations answer for their roles in allowing millions of Americans to be defrauded through scams involving Zelle.
Senate Democrats sent letters to big banks on Friday, demanding that the corporations answer for their roles in allowing millions of Americans to be defrauded through scams involving Zelle, a money transfer network whose parent company is owned by seven large banks in the U.S.
The service is popular due to its ability to immediately transfer money between bank accounts — but is easy to exploit, the lawmakers say, due to the fact that users have no way to cancel a transaction after they’ve made it.from their banks. Reports have found that Wells Fargo and other banks have said that transactions done under a false premise aren’t fraudulent because the victim of the scam authorized the payment, leaving consumers short potentially hundreds or thousands of dollars.
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