CFPB vs. JPM, BoA, Wells Fargo - Zelle fraud management

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The Consumer Financial Protection Bureau sued JPMorgan Chase, Bank of America and Wells Fargo on Friday, along with Early Warning Services, the operator of peer-to-peer payments platform Zelle, alleging the companies failed to protect consumers from fraud.

Customers of the three banks have lost more than $870 million over Zelle in the past seven years, the CFPB asserted, alleging that Early Warning Services rushed the platform to market to compete with the likes of Venmo and Cash App but without effective safeguards.
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CFPB sues JPMorgan, Bank of America, Wells Fargo over Zelle

Zelle operator Early Warning Services rushed the platform to market to compete with the likes of Venmo and CashApp but without effective safeguards, the agency said.

www.bankingdive.com

The complaint can be found here:

Early Warning Services, LLC; Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Wells Fargo Bank, N.A | Consumer Financial Protection Bureau

On December 20, 2024, the Bureau filed a lawsuit against Early Warning Services, LLC (EWS), Bank of America, N.A., JPMorgan Chase Bank, N.A., and Wells Fargo Bank, N.A., claiming they failed to safeguard the Zelle network from fraud and other defects, which resulted in hundreds of millions of...

www.consumerfinance.gov

Will the FDIC recommend banks limit services to payment services like PayPal, Venmo, CashApp and Zelle now, or is fraud and risk still something unique to crypto?