CFPB

US consumer watchdog sues big banks over ‘widespread’ fraud on Zelle payment app

Date: July 23, 2025

The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against several major U.S. banks, accusing them of failing to address fraudulent activities on the Zelle payment platform. The CFPB claims that these banks did not implement adequate measures to protect consumers from scams and fraudulent transactions, resulting in significant financial losses for many users. Zelle, a popular digital payment service, is jointly owned by several leading banks. The lawsuit alleges that despite being aware of the vulnerabilities, the banks did not take sufficient action to rectify the issues. The CFPB aims to hold these institutions accountable and seeks remedies to prevent future consumer harm....