Did you lose money on the Zelle app due to fraud or unauthorized transactions and your bank refused to refund the money you lost? If this happened to you, you may have a legal claim.
Zelle is a peer-to-peer payment app from Early Warning Services, a company that was created and owned by seven of the country’s largest banks:
- Bank of America
- Capital One
- JPMorgan Chase
- U.S. Bank
- Wells Fargo
Reports of Zelle scams are increasingly making the news, yet banks allegedly still fail to refund consumers for the money they lost. In some cases, consumers report that they have lost thousands of dollars to a Zelle scam or through unauthorized transactions.
Do You Qualify?
If you lost money due to a Zelle scam and your bank refused to reimburse you for your losses, you may be eligible to join a free Zelle app class action lawsuit investigation to pursue compensation for the money you lost.
Fill out the form on this page for more information.
What is an Unauthorized Transaction?
When a consumer’s account is accessed by a bad actor and used to transfer a payment, these are often called “unauthorized” transactions. For example, if your phone was stolen, your account was hacked, or a ‘bad actor” otherwise gained access to your account. Zelle claims to have a “zero liability policy” for cases in which a bad actor gains access to a consumer’s Zelle account and uses it to make unauthorized payments. However, Banks are failing to reimburse consumers for unauthorized fraudulent activity, despite their claims that it is safe and that they have a “zero liability” policy for fraud.
How do Zelle scams work?
Zelle scams often involve a realistic email or text message requesting the recipient to confirm a Zelle payment or that their bank account has been compromised. When the customer responds in an effort to address the problem, the scammers reportedly follow up with a phone call from a phone number that appears to be from the financial institution.
The scammer offers bogus instructions that ultimately result in the customer transferring money to the scammer, according to CNET.
Even after filing fraud claims with their banks, many victims of alleged Zelle fraud say their banks refuse to reimburse them for their losses.
In a so-called “pay yourself” Zelle scam, NBC Boston reports that a scammer spoofs the Bank’sphone number to dupe customers into thinking the call is coming from the bank and offers to help with the allegedly fraudulent charges mentioned in the text message.
The scammer reportedly asks the customer for the one-time code they received from the bank and uses it to enroll a different bank account with Zelle so they can transfer money into that account. Victims of this alleged “pay yourself” Zelle scam say they lost thousands of dollars to scammers.
Banks have failed to take responsibility for Zelle fraud, Senators say
In early October 2022, Congress held its Annual Oversight of the Nation’s Largest Banks hearing, and some members of Congress expressed concern that banks were not doing enough to protect their customers from scams on Zelle.
“All of your banks have promoted Zelle, the payment app that most of you own,” said Senate Banking Committee Chairman Sherrod Brown in his opening statement. “You pushed this on customers — but you haven’t taken responsibility for the fraud that it’s perpetuated.”
For example, Wells Fargo tells customers, “Zelle is fast, safe, and convenient”, but fails to warn consumers about the risks of using Zelle to transfer money and continues to promote the app, despite rampant fraud. A recently published report by Senator Warren found that “the banks that own and profit from the platform are failing to make their customers whole for both authorized and unauthorized fraudulent transactions.”
If you were the victim of a Zelle scam, you are not alone. You may qualify to join a free Zelle class action lawsuit investigation to pursue compensation for your losses and hold banks accountable for failing to refund Zelle fraudulent charges.
Join a Zelle app class action lawsuit investigation
Zelle fraud has reportedly caused numerous people to be scammed out of significant amounts of money. Even though the major banks are aware of widespread scams and unauthorized transactions on Zelle, they frequently refuse to reimburse customers for their losses. In some cases, customers have reportedly lost thousands of dollars.
If your bank refused to reimburse you for money you lost due to a Zelle scam or a transaction you did not authorize, you may qualify to participate in a Zelle fraud class action lawsuit investigation.