Democratic senators Take Aim at Zelle and Its Bank Owners Amid Growing Fraud Scrutiny

Source: American Banker

Two top Democrats on the Senate Banking Committee are demanding information from the bank-owned parent company behind Zelle detailing the payment network’s efforts to combat customer fraud. 

Sens. Elizabeth Warren of Massachusetts and Bob Menendez of New Jersey are the latest players in Washington to scrutinize Zelle, which has combated accusations allowing widespread fraud on its platform as it has grown in popularity in recent years. 

“We write regarding disturbing reports of a rise in fraud and scams on your online peer-to-peer money transfer platform Zelle, and the ongoing failure by Zelle or the banks that own this service to address these scams and provide appropriate redress to defrauded consumers,” Warren and Menendez said in a letter dated April 25.