EddieJayonCrypto
20 Feb 25
JPMorgan Chase is implementing new restrictions on the use of Zelle, blocking payments linked to social media contacts and online marketplaces to prevent fraud and scams. The bank may question customers about payment purposes and recipient contact before blocking potentially risky transactions. Last...
JPMorgan Chase is set to block Zelle payments linked to social media and online marketplaces, citing fraud prevention. The bank aims to prevent potential scams and fraud by implementing restrictions and questioning customers about payment purposes and recipient contact.
Last year, Chase, Wells Fargo, and Bank of America faced $456 million in fraud claims on Zelle, leading to reimbursements totaling $341 million. Zelle's parent company and the banks refute allegations of inadequate fraud safeguards, emphasizing their strong anti-fraud measures.
The Consumer Financial Protection Bureau has taken legal action, suing Early Warning Services (EWS), JPMorgan Chase, Wells Fargo, and Bank of America for alleged insufficient fraud prevention measures. EWS and the banks have firmly denied the claims, stating that less than 0.1% of Zelle transactions are reported as fraud or scams.