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Cyber Risks · Krebs on Security

Report: Big U.S. Banks Are Stiffing Account Takeover Victims

Summary: A report from Sen. Elizabeth Warren found that four large U.S. banks reimbursed only 47% of the dollar amount of Zelle fraud claims they received, and that the three banks providing complete scam data repaid customers in just 3,473 of 35,848 cases, about 10%, totaling $2.9 million of $25.9 million. Bank of America refunded less than 45% of $125 million in unauthorized transaction claims, PNC left 86% of reporting customers without recourse, and U.S. Bank refunded 8,242 of 28,642 cases, while Truist reimbursed 82% of its claims.

What you should know: Zelle is enabled by default at over 1,000 financial institutions and is jointly owned by Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo, so the reimbursement gap sits inside accounts customers never opted into. Businesses get none of the consumer liability protection at all, and the CFPB guidance cited in the report has not been matched by bank practice.

Read the original at Krebs on Security ↗

Topics
Fraud & Scams
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