Payment fraud has been rampant over the past few years with schemers claiming as much as $5.8 billion in the past year alone. However, Zelle a peer-to-peer payment service, offered by hundreds of the world's top financial institutions, has seen victims ranging from young to old lose thousands of dollars a text at a time.
"A lot of people are getting scammed on Zelle." $500 was actually really good" .-Wells Fargo Representative
According to records, nearly half a trillion dollars worth of transactions have been facilitated via Zelle over the past twelve months, which left fortunes for would-be thieves ripe for the taking. Owned via a collaboration of just 7 banking behemoths including PNC bank, Wells Fargo, Bank of America, Capital One, U.S.Bank, JP Morgan Chase, and Truist Bank(BB&T/Sun Trust), the platform provides a seamless way to send and receive money in real-time at the touch of a button.
"I had to work with the industry more, with the other CEOs, to say we're going to do it. Zelle was an application of that".- Brian Moynihan- CEO, Bank of America
For years their customers complained about not getting reimbursed for their losses, which occurred via malicious text campaigns, fake sites, rogue calls, and bad emails. The banks while neglecting to adequately investigate claims, cited Regulation E, placing the burden on account holders to prove unauthorized access.
However, a new banking rule will provide much-needed relief to fraud victims as they maneuver the process to recover their stolen funds. Anonymous sources confirm, that the fraudsters' institutions, not recipient banks, will ultimately be required to repay the stolen money. This not only gives the victim credibility but also puts pressure on the banks to protect consumers, who are often left without recourse when they lack the ability to fully prove their innocence. Set to take place as the New Year begins, for millions, it's finally a step in the right direction.