Top US Bank Refuses 115 Billion Investor Compensation

Byadmin

Jul 7, 2024
Top US Bank Refuses 115 Billion Investor CompensationTop US Bank Refuses 115 Billion Investor Compensation

JPMorgan Chase, Bank of America, and Wells Fargo have agreed to testify before the United States Senate regarding a major fraud incident involving the Zelle payment network.

According to Politico, the hearing scheduled for March 23rd will feature senior executives responsible for the banks’ settlement operations.

The Permanent Subcommittee on Investigations will hold the hearing, highlighting that customers of these major banks reported $2.2 billion in fraudulent transactions to Zelle in 2022.

Democratic Senator and committee chairman Richard Blumenthal criticized the banks for insufficient consumer protection.

Read more:


Brick nations: World Bank acknowledges Russian economic growth

He stated:
“They view this as simply the cost of doing business. But it’s the cost to users, not themselves, because it’s the customers who are footing the bill. That’s why we’re calling on Zelle and the big three banks to step up.”

Blumenthal emphasized that banks are now “ready,” as criminals increasingly exploit advanced technology to deceive customers.

He explained:
“Criminals are increasingly using personalized scams, employing AI for voice cloning, and extracting personal data from breached sources to sell on the dark web, thereby escalating risks. The risks are growing, and protective measures must be taken. Zelle and the parent banks recognize these alarming new trends. There’s no doubt. They’ve been warned. They track detailed information on the latest frauds but have failed to stop them. They have also failed to compensate their customers.”

Zelle, owned by JPMorgan Chase, Bank of America, and Wells Fargo among seven U.S. banks, processed transactions worth $806 billion last year, “with less than one-tenth of a percent reported as fraudulent.”

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *