Zelle, the most popular payments app, is owned and operated by Early Warning Services, a company based in Scottsdale, Ariz. Early Warning is owned by seven banks — Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo. But each of the 1,600 banks and credit unions that offer Zelle to their customers uses its own security settings and policies. Neither the banks nor Early Warning publicly release any data on fraud, so it’s hard to tell how prevalent scams and theft are on Zelle. In those cases, banks usually refuse to make refunds, arguing that since customers themselves initiated the transfer, it’s not “unauthorized” under the definition of the law.

Source: CNN June 20, 2022 08:49 UTC