Lawmakers Want More Information From Banks About Zelle Payments

Three members of Congress said Thursday (July 3) that they sent a letter to each of the banks that own the Zelle peer-to-peer (P2P) payment platform, asking what those banks are doing to combat social media scams.

The letters were prompted by a proliferation of these scams and by the decision of one of the banks, J.P. Morgan Chase, to block Zelle payments that originate from social media, the House Financial Services Committee Democrats said in a Thursday press release.

Letters were sent to Bank of America, Capital One, J.P. Morgan Chase, PNC, Truist, U.S. Bank and Wells Fargo. They were signed by Rep. Maxine Waters of California, Sen. Elizabeth Warren of Massachusetts and Sen. Richard Blumenthal of Connecticut.

“Zelle facilitated over $1 trillion in payments in 2024, a 27% increase from the year prior,” the members of Congress wrote in the letters. “And as the use of the platform grows, so does the opportunity for fraud and scams.”

Saying the members of Congress want to better understand each bank’s policies regarding fraud and scams on Zelle and other P2P platforms, the letter sent to six of the seven banks asks for data about scams and fraud associated with social media, Zelle, and other P2P platforms; the bank’s policies and procedures on reimbursing consumers who report these scams; and the steps the bank is taking to protect consumers from these scams.

A separate letter sent to J.P. Morgan Chase also asks that bank how it came to the decision to block Zelle transactions that originate on social media.

Reached by PYMNTS, J.P. Morgan Chase, PNC, Truist and U.S. Bank declined to comment on the letters. The other three banks did not immediately reply to a request for comment.

A Zelle spokesperson told PYMNTS in an emailed statement that criminals are targeting Americans through a variety of channels — including phone calls, text messages, emails, social media and online marketplaces — and that law enforcement, government and private industry should work together to protect Americans.

“Zelle is leading the fight against scams and fraud and has industry-leading reimbursement policies that go above and beyond the law,” the statement said. “It is relied upon by more than 150 million enrolled American users and today more than 99.95 percent of all transactions on the platform are completed without any report of scam or fraud.”

J.P. Morgan Chase’s decision to delay, decline or block Zelle payments that originate from contact through social media was widely reported in February.

The bank’s service agreement says the Zelle service is meant for sending money to friends, family and other trusted people and should not be used to send money to strangers.