U.S. regulators are investigating how large banks handle fraud transactions on the Zelle platform

ChainCatcher news, according to The Wall Street Journal, the Consumer Financial Protection Bureau (CFPB) is investigating how several of the largest banks in the United States handle customer funds on the payment platform Zelle, which has faced scrutiny over scams and fraudulent transactions.

According to informed sources, the CFPB's investigation primarily targets large banks such as JPMorgan Chase, Bank of America, and Wells Fargo. The investigation is broad in scope, aiming to examine how banks respond when customers dispute transactions made through Zelle.

It is reported that Zelle is owned by a consortium of seven of the largest banks in the United States, including JPMorgan Chase, Wells Fargo, and Bank of America, and currently processes more transaction amounts than the popular payment platform Venmo. However, with rapid growth, complaints have also increased, claiming that banks have not taken sufficient measures to help customers recover scammed funds.