Lawsuit Alleges Banks Failed to Protect Customers from Zelle Fraud
Multiple lawsuits have been filed against the largest banks in the country, alleging that they failed to protect customers from Zelle-related fraud. Customers have lost millions of dollars in scams perpetrated through the Zelle app or Zellepay.com. Banks, including JPMorgan Chase, Bank of America, and more, have failed to reimburse customers despite knowing of the unauthorized transfers.
The international class action law firm, Levin Law, P.A., is investigating claims related to a bank’s failure to reimburse unauthorized Zelle transactions. It is alleged that banks continued to promote the peer-to-peer payment app as safe and secure despite knowing the risks of fraud. If you or a loved one has sustained losses in a Zelle-related scam, contact Levin Law at (305) 402-9050 or email contact@levinlawpa.com to schedule a free case evaluation.
What Is Alleged Against the Banks?
A class action lawsuit and other legal action have been filed against major banks, alleging that they failed to protect customers from fraudulent scams on the payment app Zelle. The litigation suggests that the country’s largest banks continued to promote Zelle as a safe and secure option for sending money despite knowing the risk of bad actors gaining unauthorized access to the payment app.
Banks accused of failing to protect customers from Zelle-related fraud include but are not limited to:
- JPMorgan Chase
- Bank of America
- Wells Fargo
- Navy Federal Credit Union
- Capital One
It is believed that bank customers have lost millions of dollars in Zelle-related fraudulent schemes. WFLA notes that four banks acknowledged having over 190,000 reports of Zelle fraud claims with losses of over $200 million. The banks only provided reimbursement in 3,500 of the cases.
What Kind of Fraud Occurs on Zelle?
Zelle is a peer-to-peer payment app that allows users to send money for free to other users. The money app is owned by seven of the country’s largest financial institutions, including Bank of America, Chase, and Wells Fargo.
While there are several different types of fraudulent schemes, many times, the scams are perpetrated when bad actors obtain unauthorized access to an account by posing as a bank employee or bypassing authentication factors. Banks then refuse to reimburse the unauthorized transactions stating that they came directly from the customer’s phone or were “authorized.”
In October 2022, Senator Elizabeth Warren filed a report on Zelle fraud and the fact that banks were not repaying customers for these transactions. It is alleged that Zelle fraud is not only widespread, but it is increasing. As noted in the report, banks touted the app as a safe way to transfer money despite knowing the potential for unauthorized transactions.
Contact Levin Law, P.A. for a Free Case Evaluation
If you sustained losses in a Zelle fraud case, contact Levin Law, P.A. for a free case evaluation. Aggrieved customers are encouraged to contact Levin Law founder and managing partner Brian Levin at (305) 402-9050 or email contact@levinlawpa.com.
Most cases are handled on a contingency fee basis, meaning clients are not required to pay Levin Law attorney fees unless money is recovered on their behalf.
About Levin Law
Levin Law is a premier national cryptocurrency, securities, commodities, futures, and class action law firm. Brian Levin, Levin Law’s founding attorney, has helped recover in excess of $150,000,000 through arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others.
