The Consumer Financial Protection Bureau (CFPB), led by Rohit Chopra, has sued the operator of Zelle and its banking partners—JPMorgan Chase, Bank of America, and Wells Fargo—claiming they inadequately addressed fraud complaints and reimbursement issues. Since Zelle’s launch in 2017, users have lost over $870 million to fraud, while the banks reimbursed only 38% of disputed claims. Chopra criticized the banks for failing to implement necessary safeguards against fraud. Early Warning Services, which operates Zelle, called the lawsuit “meritless” and argued that the CFPB’s figures are misleading, asserting the platform’s fraud rates are declining.
