A federal investigation into banking giant JPMorgan Chase is focusing on how the bank treats and protects potential fraud victims, according to a new report.
The Consumer Financial Protection Bureau (CFPB) is investigating whether the bank is properly reimbursing customers and effectively eliminating scammers’ bank accounts, CNBC reports, citing sources who requested anonymity while speaking about an ongoing investigation.
The agency’s concerns center on how the bank handles customers who transfer money to Zelle, and investigators are also reportedly looking into similar concerns about Wells Fargo and Bank of America.
In a recent filing, Chase confirmed that an investigation is underway and said it is “evaluating next steps, including litigation.”
The bank has declined to comment publicly on the CFPB’s investigation.
The Senate Permanent Subcommittee on Investigations recently found that Chase, Wells Fargo and BofA reimbursed victims who reported Zelle scams in 2023 38% of the time, down from 62% in 2019.
The subcommittee also says the three banks have collectively refused to refund $880 million in disputed Zelle transactions between 2021 and 2023.
The Electronic Fund Transfer Act explicitly protects people who lose money from unauthorized transfers, but does not provide the same protection when customers are tricked into approving illegal transactions.
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