LINCOLN, Neb. (KOLN) – CBS reports that since the pandemic millions of Americans started using money-sharing platforms like Cash App and Venmo.
However, they found that Zelle surpassed the other options.
For the past 15 months, a U.S. Senate Committee has investigated Zelle and its top three used banks; JP Morgan Chase, Bank of America, and Wells Fargo. The committee is diving into whether or not Zelle and the three banks are doing enough to protect users from scams or fraud.
“These apps that may seem convenient don’t have all the protections you might want them to have,” said Liz Coyle, Executive Director at Georgia Watch.
A member of the investigating subcommittee, Senator Richard Blumenthal said after an inquiry on Zelle and the banks, it was discovered that most users who made scam disputes weren’t getting their money back.
“Our analysis found that in 2023 Zelle’s three largest banks reimbursed victims of these scams only 12% of the time,” said Sen. Blumenthal.
According to CBS, the banks rejected a combined $560 million in scam disputes from 2021 to 2023.
Cameron Fowler is the CEO of Early Warning Services, the company that owns Zelle. Fowler said disputes are not always what they seem and sometimes there is no trace of fraud or scams.