Fraud and theft cases increased on Zelle payment service

An investigation led by a U.S. Senate committee says fraud and theft ran rampant on the electronic payment service Zelle.

COLUMBIA, S.C. (WOLO)— An investigation led by a U.S. Senate committee says fraud and theft ran rampant on the electronic payment service Zelle.

The investigation report found that users of the peer-to-peer service lost an estimated $440 million last year to fraud.

Banks have been reluctant to refund most customers who were victims of the scams or fraud. That could be a violation of federal law since seven of the U.S. largest banks own Zelle and claim it is safe.

The Banking Industry Trade and Advocacy group claims Zelle’s rivals like Venmo and Cashapp receive more reports of disputed transactions.