WASHINGTON — The CEO of Early Warning Services, which owns and operates bank-to-bank payment network Zelle, will testify at a Senate hearing next week on fraud on the Zelle payments network.
The Zelle executive, Cameron Fowler, will join executives from JPMorgan Chase, Bank of America and Wells Fargo in front of the U.S. Senate Permanent Subcommittee on Investigations to discuss fraud on Zelle on July 23.
The Senate panel's investigation into Zelle has found that customers of JPMorgan, Bank of America and Wells Fargo submitted claims reflecting a combined total of $456 million lost to scams and fraud on the payments network. Nearly three-quarters of those losses have never been repaid by the banks, said Sen. Richard Blumenthal, D-Conn., who chairs the committee.
"Year after year, Zelle and the banks that own it have failed to fully protect consumers from a growing threat of scams and fraud," Blumenthal said in a statement. "The banks play 'heads I win, tails you lose,' as sophisticated scammers reap the benefits and consumers lose hard-earned money."
The hearing is part of
"At this hearing, Zelle and its three largest owner banks will finally answer for their unwillingness to make consumers whole when they fall victim to scams and fraud on Zelle," Blumenthal said. "Instant payments must not mean instant losses for consumers."
