Authorized payment scams have been a bit of a grey area regarding customer reimbursement.
While in the US, federal rules require banks to reimburse customers for payments made without their authorization, when customers make the transfer themself, this protection ends.
On the surface, this makes sense, but it doesn’t account for the rash of fraud operations that have targeted trusting consumers who make payments in good faith only to find they have been duped.
With the rise of instant payments, fraud levels of this type are set to get a lot worse.
Today, a report by Reuters wrote that Zelle has begun refunding victims of imposter scams. Banks on the app have refunded transfers made by customers to fraudsters claiming to be government entities and businesses. They also must use a tool to flag transfers that “show risky attributes.”
Until recently, banks were “dragging their feet” over these kinds of fraud refunds, so it’s good to know in some places, the sentiment might be changing.
FEATURED
Payments app Zelle begins refunds for imposter scams after Washington pressure
The refunds address consumer protection concerns raised by U.S. lawmakers and the federal watchdog.
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