Fraud, scam cases increasing on Zelle, US Senate report finds

The report also found that the large banks that partly own Zelle have been reluctant to compensate customers who have been victims of fraud or scams. — Dreamstime/TNS

NEW YORK: Incidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report issued Oct 3 by the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle.

The report also found that the large banks that partly own Zelle have been reluctant to compensate customers who have been victims of fraud or scams. For instance, less than half of the money customers reported being sent via Zelle without authorization was being reimbursed.