Senator Warren’s latest report, Facilitating Fraud: How Consumers Defrauded on Zelle Are Left High and Dry, has some eye-opening new stats on Zelle fraud.
The report, which accuses banks of not doing enough to reimburse customers, also claims that fraud on the payment platform is soaring.
And now, Warren claims she has the numbers to prove it.
Zelle Fraud Claims Are Increasing At Big Banks – Some Up To 200%
Zelle fraud does appear to be growing.
With some banks, it’s a large increase – up to 200% growth in the last 3 years.
PNC Bank Is Up 40%
PNC Bank reported that the number of claims increased from 8,848 in 2020 to 11,356 in 2021, and in 2022 the bank’s customers are on a pace to report over 12,300 cases of fraud and scams.
That’s a growth rate of about 40% in claims, but it’s unclear how much Zelle grew overall at the bank.
US Bank Is Up 200%
Similarly, U.S. Bank reported 14,886 fraud and scam claims on Zelle in 2020 and increased to 27,702 in
2021, and that its customers are on pace to report nearly 45,500 in 2022.
Truist Bank Is Up 100%
Truist reported 9,455 fraud and scam claims on Zelle in 2020 and 22,045 in 2021, and that its customers are on pace to report nearly 20,000 in 2022, a slight decline from 2021 but still well above the number of fraud and scam claims in 2020
Bank of America Zelle Fraud Claims Are Up 200%
Bank of America reported that the number of Zelle fraud and scam claims increased from 49,652 in 2020 to 131,509 in 2021. In 2022, Bank of America customers are on track to report 160,977 incidences of scams and fraud on Zelle.
Similarly, the value of fraud and scam claims has increased significantly in recent years. The
four banks that provided the relevant data to Senator Warren indicated that the value of scams and
fraud claims they received in 2020 was over $90 million, which jumped by more than 250%, to
nearly $236 million in 2021 and is on pace to exceed $255 million in 2022.
Zelle Fraud Is Growing, But So Is Zelle
The report, which focuses on fraud claim growth, does not account for the overall growth of the platform.
Zelle payments overall have increased about 100% over the last 3 years as the payment platform has grown rapidly.
Read Warrens Report Here
You can read Warren’s full report and all her numbers here.