JPMorgan Chase is making major changes to the way its customers can use the payments service Zelle. Starting next month, the bank says it will begin blocking Zelle payments that appear to be connected to social media contacts and online marketplaces. “To help protect you from fraud and scams, the Zelle Service should be used for payments between friends, family, and others you trust and should not be used to pay for goods from recipients with whom you are not familiar. The Service is not intended, and should not be used, for the purchase of goods from retailers, merchants, or the like, including on or through social media or social media marketplaces or messaging apps.” Chase says it may directly ask customers what payments are for and how they contacted the recipient, and the bank will block transactions identified as potentially risky. “We may in our discretion decline payments, restrict your use of Zelle through Chase, or take other actions as described in your account agreement if you do not respond truthfully to questions we ask or if you otherwise engage in risky use of the Zelle Service, which includes alleged deceit, fraud, or material misrepresentations in providing information about your payment.” Last year, the Senate’s Permanent Subcommittee on Investigations found customers at Chase, Wells Fargo and Bank of America submitted claims to recover $456 million in 2022, citing fraud and scams on Zelle. For those claims, the banks reimbursed a total of $341 million. Zelle’s parent company Early Warning Services, which is owned by seven major US banks including the three financial giants mentioned above, says less than one-tenth of one percent of transactions are reported as fraud or scams. In December, the Consumer Financial Protection Bureau (CFPB) sued Early Warning Services (EWS), Chase, Wells Fargo and Bank of America, alleging they failed to implement adequate safeguards against fraud on Zelle. EWS and the banks have denied the allegations, calling the lawsuit meritless and arguing that Zelle has strong anti-fraud measures in place. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: Midjourney The post JPMorgan Chase Launching New Zelle Restrictions After Chase, Bank of America and Wells Fargo Customers Lose $456,000,000 To Scams in One Year appeared first on The Daily Hodl .
