On Thursday, U.S. Sens. Sherrod Brown (D-OH), Jack Reed (D-RI), and Elizabeth Warren (D-MA) asked instant payment platform Zelle to clarify what its policies are when it comes to protecting consumers from fraud and scams.
In a letter, the senators, all members of the Senate Banking, Housing, and Urban Affairs Committee, pressed Zelle CEO Cameron Fowler to publicly clarify the company’s policies on reimbursing consumers for imposter scams, as well as other types of scams, and how the company can streamline processes the consumer can take to report unauthorized transactions, scams and fraud. The letter comes after reports in November that the company had begun reimbursing some customers who were victims of fraud and scams, but that it was not clear whether the reports indicated the reimbursements were now standard practice.
“Since it appears that Zelle has not shared any specific information about its reimbursement policy, customers may not know that they can be reimbursed and, thinking they may not get any help, may not report these scams. Zelle should clarify whether all participating banks and credit unions are required to reimburse customers who are victims of ‘qualifying’ imposter scams and make that policy public,” the Senators wrote. “It is also currently unnecessarily complicated to report fraud and scams to Zelle… One set of complaints is reportable through a webpage, while another is reportable only by phone. Many customers are unlikely to know which category their transaction falls into and therefore which form to use. This process is unnecessarily cumbersome from the victim’s perspective, which may limit their ability to receive reimbursement and render the new policy less effective.”
Previously, Brown held a committee hearing on the growing threat of fraud and scams in the banking system, and has led colleagues in letters to digital payment platforms Venmo and CashApp in regard to reimbursing victims of fraud and scam.