🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Wells Fargo failing to protect customers from Zelle scams -Senator Warren

Published 10/13/2022, 01:18 PM
Updated 10/13/2022, 05:16 PM
© Reuters. FILE PHOTO -A Wells Fargo bank is seen in Del Mar, California January 17, 2012.  REUTERS/Mike Blake
WFC
-

(Reuters) -Democratic U.S. Senator Elizabeth Warren criticized Wells Fargo (NYSE:WFC) & Co for failing to protect its customers from fraud and scams on Zelle, a digital payments platform owned by seven of the biggest U.S. banks.

In a letter dated Oct. 6 but made public on Thursday, Warren told Wells CEO Charles Scharf the "alarming pattern" was made worse by the bank's refusal to make its Zelle scam and fraud data public.

In her letter, Warren, a prominent bank critic who sits on the Senate Banking Committee, claimed the bank's customers are reporting fraud and scams this year at a rate nearly 2.5 times higher than in 2019 and twice as high as those of other banks.

Zelle did not immediately respond to requests for comment.

Warren and other lawmakers have pressed large banks like Zelle to do more to protect consumers who suffer scams on the platform, and have demanded banks provide complete data on the level of Zelle fraud reported at each bank.

In a statement, a Wells Fargo spokeswoman disputed Warren's methodology, saying the bank's fraud claims related to Zelle are in line with the rest of the industry.

© Reuters. FILE PHOTO -A Wells Fargo bank is seen in Del Mar, California January 17, 2012.  REUTERS/Mike Blake

"As a member of Zelle, we've seen the number of transactions double in just three years, yet in 2022, 99.94% of our customer transactions occurred without incident. We don't believe the numbers in a recent report are done on a comparable basis, and therefore the analysis is misleading and inaccurate," said bank spokeswoman Amy Bonitatibus. She added that their data showed Zelle's fraud and scam rates were consistent with the industry and not twice as high compared to other banks.

The Zelle pressure comes as lawmakers like Warren have scrutinized the bank, which is working to address numerous woes from prior years, including a far-reaching fake accounts scandal and an unprecedented cap placed on its growth by the Federal Reserve.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.