JPMorgan Chase, Bank of America and Wells Fargo To Testify After Allegedly Refusing To Reimburse $115,000,000 To Customers on Zelle: Report

JPMorgan Chase, Bank of America, and Wells Fargo are set to testify at a US Senate hearing following allegations that they declined to reimburse customers for fraudulent transactions totaling $115 million on the Zelle payments network, according to a report. The banks’ executives responsible for payment operations are expected to appear before the Permanent Subcommittee on Investigations on July 23, as customers reported $456 million in fraud on Zelle in 2022. Democratic Senator Richard Blumenthal, who chairs the committee, criticized the banks for neglecting to protect consumers and stated that scammers are exploiting advanced technology to target customers. Zelle, which is owned by seven US banks including JPMorgan Chase, Bank of America, and Wells Fargo, processed $806 billion in transactions last year, with a reported fraud rate of less than one-tenth of one percent.