$950,000 recovery from brokerage firm that negligently approved a fraudulent investment product for sale to customers and negligently supervised its broker.
Zelle® is a fast and convenient app that allows bankers to instantly transfer money to a person, business, or employee. The money app is utilized by most major financial institutions and can be used both nationally and internationally. The program has recently come under scrutiny for charging exorbitant fees and allowing unauthorized transactions.
At Levin Law, P.A., we are investigating claims related to Zelle® bank fees and fraudulent transactions conducted on Zelle. Our experienced lawyers can help determine whether you might be eligible for a Zelle® class action lawsuit or other legal action. Victims of Zelle® fraud scams or unauthorized fees are encouraged to contact Levin Law at (305) 402-9050 or to email founder and managing attorney Brian Levin at email@example.com to schedule a free case evaluation.
Zelle® is owned and operated by Early Warning Services, LLC. As reported by CNBC, seven of the largest banks in the world own Early Warning Services. It is not a publicly traded company. In addition to the seven banks that co-own Zelle’s parent company, it is also utilized by nearly two dozen other financial institutions.
In essence, it is an app that allows money to be transferred between people. It is frequently used in peer-to-peer transactions but also for the purchase of goods and services. It is free to use, but banks may charge fees related to the transactions. The app is widely used but may be prone to fraud, as alleged in recent lawsuits.
Lawsuits filed against Zelle® claim that the app is prone to fraudulent schemes. The unauthorized transaction occurs over a matter of seconds. As reported by ABC 11, the illegal transfers cannot be “traced or reversed.” A class action lawsuit alleges that Bank of America (an owner of Zelle’s parent company) failed to warn customers about the risk of fraud. Instead, the financial institution continued to promote the app as a safe and secure way to send money.
The scam reportedly works when bad actors access a person’s account information. The access may be the result of a data breach or a fraudulent scheme. The hacker then texts or calls you, posing as a bank employee. They either ask for you to transfer funds to “protect your account” or gain information to bypass the two-factor authentication. Either way, once the money transfer is complete, there is no recourse. The bank sees it as an authorized transaction and will not refund the money.
The money transfer app, which handled billions of transactions last year, is popular because it is free. There is no charge to use Zelle® to transfer money; however, financial institutions may charge transaction fees. Unfortunately, multiple customers report receiving huge fees due to Zelle® transactions.
Any time there are insufficient funds in an account, the bank will charge high, often excessive, insufficient funds and overdraft fees that may compound. In some cases, these fees are based on unauthorized money transfers that were part of a fraudulent scheme. Unfortunately, individuals who fell victim to these forms of fraud have reported losing anywhere from a few hundred to thousands of dollars.
Zelle® is a convenient money transfer app, but it may not be as safe and secure as the financial institutions that own it would lead you to believe. It is not yet known how many customers have had unauthorized transactions occur using their Zelle® account. Once the money is transferred out, there is currently no way to get it refunded.
In order to prevent fraud while using Zelle®, it is advised that you enable two-factor authentication. The more security measures you have in place, the more secure your account will be. Furthermore, do not respond to text messages or phone calls asking for your security information. A bank will not call or text you for account information. Make sure that you know how your bank will communicate with you if there is a problem with your account.
If you were the victim of a Zelle® fraudulent scam or excessive bank fees, you might be eligible to join a class action lawsuit or to take other legal action. It is important to discuss your case with an experienced attorney to determine your options. Aggrieved customers are strongly encouraged to contact Levin Law for a no-cost case consultation.
To determine whether you qualify to take legal action, contact our office at (305) 402-9050 or email Levin Law founder and managing partner Brian Levin at firstname.lastname@example.org to schedule a free case evaluation. All consultations are confidential and without obligation to retain our firm.
Most cases are accepted on a contingency fee basis, meaning that clients are not required to pay Levin Law attorney fees unless money is recovered on their behalf.
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.