Zelle payment system exploring new ways to reimburse bank scam victims


Customers who fall victim to schemes to send money to their own bank account only to have the money put into a bank account from a scammer may be able to get their money back under a proposed system being developed by banks, The Wall Street Journal reported Monday. Citing sources familiar with the situation, the newspaper said banks are talking about standardization of refund procedures within the Zelle payments system, which is jointly owned by several banks including JPMorgan Chase & Co. JPM, -1.70%, Wells Fargo & Co. WFC, -0.87% and Bank of America Corp. BAC, -1.98%. Banks are talking about returning money to a victim’s bank once a bank determines that a customer was tricked into sending money to the wrong account. The scam victim would get a refund from their bank. The move comes as Sen. Elizabeth Warren calls for more reimbursements for fraud from banks and as scammers increase their sophistication with caller ID’s that match the name of the individuals bank. A spokesperson for Early Warning Services LLC, the parent of Zelle, told The WSJ that fraud and scam claims have been made on fewer than 0.1% of payments. The Consumer Financial Protection Bureau has said reports and consumer complaints of payments scams increased dramatically.

This article was originally published by Marketwatch.com. Read the original article here.

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