A report published Tuesday in The Wall Street Journal reports that the Consumer Financial Protection Bureau is planning to tighten rules around fraudulent money transfers via services like Zelle by requiring banks to compensate more customers harmed by these alleged scams. The purpose of these services is to facilitate quick and digital payments between individuals. The Consumer Financial Protection Bureau, an agency created in the wake of the 2008 financial crisis, is preparing to issue guidance in the coming weeks that will raise banks’ financial obligations to customers who lose money in payment-service scams. According to the WSJ report, banks are generally only liable for such transactions if customers unauthorized them. Still, the CFPB may raise the bar by declaring payments made to scammers as unauthorized.
A CFPB spokesperson declined to comment on the specifics of the report. “Reports and consumer complaints of payments scams have risen sharply, and financial fraud can be devastating for victims,” the spokesperson said in an e-mailed statement. “The CFPB is working to prevent further harm, including by ensuring that financial institutions are living up to their investigation and error resolution obligations.” In a statement, Early Warning Services, LLC, a group of seven banks that owns Zelle, said the service had helped millions of customers in their daily lives, such as paying rent, getting money when in need, or satisfying debts to friends. “Protecting consumers is one of our top priorities,” the spokesperson said. “As a network, we constantly adapt consumer protection measures to address the dynamic and evolving nature of deceptive activities fraudsters employ.”