for failing to protect consumers from widespread fraud on the most widely available peer to peer payment network.
Customers have lost more than $870 million since the launch of Zelle in 2017
"CFPB, the government's consumer financial watchdog agency, alleges customers of the top three banks lost more than $870 million over the seven years that Zelle has been in existence due to the banks' failures to protect them."
This is of course why the DOGE wants to get rid of CFPF as well as FDIC and OCC. Fixing it means let the buyer beware (and solely responsible).
The rooms we had reservation for next door to the Castaways ended up with so much dust on the carpet under the beds, and we unwrapped the glasses in the room they were dirty and the guys checked us out with no charge, put the bags in the car and went looking for another place to stay. My friend and I went to the beach where they had a big pipe spuing brown water into the ocean and we would not even go into the ocean and then went to sit by the pool and they wanted to charge us each $5 an hour to use the lounge chair by the pool.
We walked the sandy beaches instead until our husbands came back with a beautiful suite in Palm Beach Gardens for a much more reasonable price. I remember when we got back to our rooms late one night and we went to the restaurant on the roof. I ordered duck becasue I never had it and the rest ordered steak. It was that a very big one but they brought me a whole duck because it was late, I shared. At that time everyone had this orange sauce on so many things. I have tried so many receipes to try to make it and nothing has been like it. Only Mrs. Pauls sweet candied sweet potatoes had it in the frozen food section of our grocery stores. They no longer sell it around here. I even called for the recipe years ago. If anyone has the receipe please PM me.
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REPORT
Alloy’s 2024 State of Fraud Benchmark Report
Examining fraud trends in financial services
In 2023, fraud remained a top challenge for banks, fintechs, and credit unions. But what types of fraud were most prominent, and how are organizations fighting back against growing fraud threats?
Alloy surveyed more than 400 decision-makers in fraud-related roles at financial services companies in the US and UK to find out how fraud has impacted their business over the last twelve months, what they're doing to combat it, and their predictions for the year ahead.
Data from the 2024 report was collected in November 2023, and data from the 2023 report was collected in September 2022.
Download the full US & UK reports
Get a sneak peek of the reports!
We’ve highlighted five key insights from the reports below.
1. Nearly 60% of banks, fintechs, and credit unions lost over $500K in direct fraud losses in 2023.
The direct cost of fraud is significant. 57% of respondents indicated that their organization lost over $500K (EUR/USD) in direct fraud losses over the past twelve months. Over one-quarter of respondents lost over $1 million in direct fraud losses over the past 12 months.
Direct fraud losses only account for the actual amount of money successfully stolen due to fraudulent activity. There are also indirect fraud costs that financial services companies pay, such as money spent on investigating and recovering fraud funds, loss of customers, and reputational damage.
Querying Google led to, “According to data from the FBI's Internet Crime Complaint Center (IC3), since 2017, there has been a significant rise in wire transfer fraud, with reports showing losses exceeding hundreds of millions of dollars, particularly in the real estate sector, where victims have lost millions due to fraudulent wire transfers.”
Links from this lead to (the only single year I could quickly find) -
https://alta.org/news-and-publications/news/20200218-WTF-221M-Lost-to-Wire-Transfer-Fraud-in-2019
So, $221 million lost to wire (not Zelle) fraud in 2019 alone. One could extrapolate that over a 7-year period to a total well over $1 billion; therefore it seems that wire transfer fraud easily beats Zelle fraud. So, why is CFPB not suing over wire transfers? And again - why not years before now?
Some of its top competitors of Zelle include the following FINTECH firms.
Venmo. A popular subsidiary of PayPal offering debit cards and money transfers using a P2P model.
PayPal. The payments system supporting online money transfers.
Apple Pay. Mobile payment available on Apple devices.
Google Pay. Digital wallet platform and online payment system primarily for Android.
Block. (Formerly Square, offers merchant services and point-of-sale payment solutions along with P2P payments via Square’s Cash app.
It is too bad where some of the readers of this blog must get their news. You wonder where they went to school or if they did. Do they ever read the filings of when these banks, companies etc when they are sued?
Since its creation, the CFPB has recovered more than $21 billion in restitution and canceled debts for tens of millions of consumers. Recently, in just one week, the bureau returned $1.8 billion to 4 million consumers who had been scammed by a group of credit repair companies scattered across the western United States. Bureau-created protections barring unfair fees, charges and terms for financial products have saved billions more.