CHARLOTTE – Several people are now suing Bank of America, claiming it didn’t do enough to protect consumers against Zelle fraud.
The class action lawsuit was filed in federal court in Charlotte. According to the lawsuit, one of the plaintiffs is a South Carolina woman who is over 70 years old. A caller “identifying themselves as a Bank of America employee” scammed him out of $2,000 using the Zelle payment app.
Ultimately, if the judge agrees to make the case a class action, it could open up the case to people all over the country, including here in the Carolinas.
The lawsuit says the Zelle app is “not safe or secure.”
“Right now, it’s a place for fraudsters and they’re taking advantage of Bank of America customers as well as other banks,” said attorney for the plaintiffs, Andrew Brown. , told Action 9’s Jason Stoogenke.
Brown said of the seven banks that own Zelle, Bank of America tends to turn a blind eye more than some of the others when it comes to fraud related to the app. “Some do a better job than Bank of America does,” Brown said.
As Stoogenke has reported many times over the past year, there is a federal law called Regulation E. The way the Financial Protection Bureau sees it, if you fall victim to fraud or fraud, banks must pay you back even if you authorize the transaction. or not. But some banks do not interpret the law that way and do not reimburse customers.
“They’re looking for any reason they can deny a refund request from an illegal business,” Brown said. “Banks follow the law or not, and it’s not gray.”
Stoogenke pointed out that the lawsuit is against Bank of America, not Zelle. He sent an email to Bank of America late Monday. The bank did not respond in time to this report. He has yet to respond to a similar lawsuit filed in July at the time.
People working in the banking industry told Stoogenke this is how the scam works:
– Scammers get your financial information (perhaps through a data breach or you clicked on a link you shouldn’t have). But they still need a two-factor authentication code to access your account.
– That’s when the drama begins. They follow up with your bank, then text you, say your account will be affected, and follow up with phone calls.
– Then they or you – it’s not clear who – try to log into your account.
– That makes two true assertions.
– You have received a code.
– They ask you for that number as part of the “treatment.”
– If you give them, now they have everything they need to enter your account and help themselves to your money.
Lessons from Action 9:
– Don’t fall for the text.
– Don’t fall for phone calls.
– Scammers can spoof your bank account number, so don’t trust your Caller ID.
– Don’t give them six numbers.
VIDEO: Eight people fell for Zelle scam in less than 2 weeks
© 2022 Cox Media Group