$870 Million in Zelle Fraud Losses Spark Lawsuit Against Platform and 3 Major Banks The Consumer Financial Protection Bureau (CFPB) has filed a lawsuit against Zelle and three of America’s largest banks, alleging widespread fraud and inadequate consumer protection measures. This legal action comes in response to reported losses exceeding $870 million over Zelle’s seven-year operation. The Lawsuit The CFPB’s lawsuit targets Early Warning Services, the operator of Zelle, along with Bank of America, JPMorgan Chase, and Wells Fargo. These financial institutions are accused of rushing Zelle to market without implementing proper safeguards against fraud. Key Allegations 1. Inadequate Fraud Prevention**: The CFPB claims that Zelle and the banks failed…