The CFPB is suing Zelle and the "big three" banks over Zelle fraud. I use the service, so I'm trying to figure out what the risk is and if there are steps to take to mitigate it.
If I understand it correctly, what they are calling "fraud" is actually a situation where a Zelle user voluntarily and knowingly sends money to someone and then later realizes they've been scammed, and wants the bank to pay them back.
Is that what this is really about, or is there some other inherent vulnerability in Zelle that makes it more prone to fraud? (like fictitious accounts where you mean to send money to X but it goes to Y, or Zelle account spoofing?)
How is it different/less secure than other payment apps like Venmo or CashApp? They seem to operate in almost the same way.
If I understand it correctly, what they are calling "fraud" is actually a situation where a Zelle user voluntarily and knowingly sends money to someone and then later realizes they've been scammed, and wants the bank to pay them back.
Is that what this is really about, or is there some other inherent vulnerability in Zelle that makes it more prone to fraud? (like fictitious accounts where you mean to send money to X but it goes to Y, or Zelle account spoofing?)
How is it different/less secure than other payment apps like Venmo or CashApp? They seem to operate in almost the same way.
Statistics: Posted by NYCaviator — Sat Dec 21, 2024 8:39 am — Replies 27 — Views 1035