The Consumer Financial Protection Bureau (CFPB) of the United States has sued this Friday JPMorgan Chase, Bank of America and Wells Fargo together with the electronic transactions company Zelle for starting a payment network between individuals without first having adequate measures to protect its users.
The CFPB has accused Zelle and the three entities of having limited methods for verifying identities, allowing fraudsters to access the system, ignoring warnings that could having detected fraud and abandoning customers after being deceived. The CFPB has also stated that complaints filed by consumers were not addressed.
“By failing to establish adequate safeguards, Zelle became a gold mine for fraudsters, often leaving victims to their fate,” said the director of the CFPB, Rohit Chopra, in statements reported by ‘Bloomberg’.
For his part, Zelle has described the supervisor’s actions as “legally and factually erroneous” given that it would supposedly be driven by “political reasons.”
