Senate finds Zelle users are being scammed out of millions

If your friend has ever said, “Zelle is safer than Venmo”, they might want to rescind that.
Zelle logo purple background

The Daily Navigator strives to help you make the best decisions in travel. While we produce content according with strict editorial integrity this post may contain references to partner products. Here’s a full explanation for how our team makes money .

If your friend has ever said, “Zelle is safer than Venmo”, they might want to rescind that statement because the app has been experiencing rampant fraud according to newly released data. 

In an issued report on Monday, Senator Elizabeth Warren shared with the public the growing concerns over Zelle’s security. The report found that big banks that partly own Zelle are only partially reimbursing customers who have reported fraudulent transactions on their account(s). 

Zelle has partnered with leading banks and credit unions across the US to offer users an alternative to apps like Venmo and Cash App.

Warren, who is known for her criticism of big banks, requested data on fraud and scams on Zelle from seven banks beginning in April. Data from just four banks showed 192,878 cases (collectively worth $213.8 million) where a customer claimed they were fraudulently swindled into making a payment. The banks reimbursed customers in only 3,500 of those cases.

In other cases where it’s apparent that funds had been taken out of customers’ account(s) without their authorization, only 47% of those dollars were reimbursed. Zelle’s owner responded to Warren’s report and said the increased cases reflected the fact the service has become more popular.

In a Congressional hearing last month involving most CEOs of these big banks, Warren pulled out all of the receipts and shared that Wells Fargo and Capital One did not provide data to Warren’s office. The CEO of JPMorgan Chase did apologize to Warren for not getting her the requested data and promised she would have it at the end of that day.

Navigate the News Better

Take a five-minute trip through the news that matters most to travelers with our daily newsletter.

Related Stories

Built with ❤️ by travelers, for travelers.

© 2024 Dollar Flight Club Inc. All Rights Reserved

Stay in the know with
The Navigator Newsletter

A five-minute trip through the news that matters most to travelers. Past Edition

A five-minute trip through the news that matters most to travelers. Past Edition

This post contains references to products from one or more of our advertisers. We may receive compensation when you click on links to those products. The relationship may impact how an offer is being presented. Our site doesn’t include all the offers available. Terms apply to the offers listed on this page. For an explanation of our Advertising Policy, visit this page.

The Daily Navigator Featured Card Popup 3
new card art for chase sapphire preferred

75,000 bonus points

Worth up to $1,500 in travel!

Partner offer. Terms apply.

DFC Partner Perks App Link Image
Special Discounts for Our Members

Save Big with Perks

Get $5,000+ in immediate travel savings with Perks. Unlock next level travel benefits, for life. Get discounts from the world’s best travel brands you won’t find anywhere else. No credit required.

DFC Concierge App Link Image
Special Discount for Our Members

93% off lifetime access

Save $1,200 and 10 hours of your time on every vacation. With Lifetime access to DFC Concierge, get fully customized trip itineraries to make every vacation unforgettable.

Dollar Flight Club App Link Image
Special Discount for Our Members


You can save up to $500 on your next adventure without lifting a finger get email alerts when we find flights up to 90% off leaving your home airport. Just let us know your departure airport and we’ll do the rest.

The Navigator Commitment

The Daily Navigator is the cornerstone of the DFC Media family. Through each of our brands, we’re dedicated to helping our readers travel, spend, and live smarter.

With products dedicated to affordable travel, daily news, hospitality, and personal finance, we deliver the day’s essential content with none of the filler — all in a way that’s fast, easy, and fun to read. Every morning, over 2 Million travelers trust DFC to deliver the latest news and information so that they can make informed decisions faster. We hope you’ll join them.

We’re happy to have you here!