The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Zelle and three major U.S. banks - Bank of America, JPMorgan Chase, and Wells Fargo - alleging widespread fraud and inadequate consumer protection on the Zelle payment platform. The lawsuit claims that bank customers have lost over $870 million due to fraud since Zelle's launch in 2017. The CFPB accuses the banks of rushing Zelle to market without proper safeguards, ignoring customer complaints, and failing to investigate fraud cases adequately. Zelle and the banks deny these allegations, with some calling the lawsuit politically motivated.

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