Zelle questioned on possible fraud

Sens. Elizabeth Warren, D-Mass., and Bob Menendez, D-N.J., took aim at Zelle, the popular money transfer app, on Monday, warning that it is putting millions of Americans at risk of being defrauded.

The lawmakers, both on the Senate Banking Committee, asked Zelle’s operator, Early Warning Services, what steps it had taken to protect consumers from the proliferation of sophisticated scams. Early Warning is owned by seven banks: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo.

A common scam involves posing as bank fraud investigators to fool victims into sending money to an account. Banks often refuse to compensate customers because they view them as having approved the transfers.