Zelle and other digital payment apps, such as Venmo and Cash App, make it easy for scammers to get your money, and many scammers target people on social media. According to Chase, nearly 50% of fraud reports it received from June 1, 2024, to Dec. 31, 2024, came from social media.

The Consumer Financial Protection Bureau is dropping its lawsuit against the company that runs the Zelle payment platform and three U.S. banks as federal agencies continue to pull back on previous enforcement actions now that President Donald Trump is back in office.

The Trump administration isn't slowing down its efforts to defang the Consumer Financial Protection Bureau, with lawsuits dropped against a handful of big banks and financial services firms, most notably a case previously accusing payments app Zelle of failing to secure its network.

The U.S. Consumer Financial Protection Bureau told a federal court on Tuesday it was dropping a lawsuit filed in December against three of the nation's largest banks over their handling of the payment service Zelle,

The Consumer Financial Protection Bureau (CFPB) dropped its suit against JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC) on Tuesday over their handling of fraud on the peer-to-peer payments network Zelle.

The Consumer Financial Protection Bureau dismissed on Tuesday its lawsuit against the the Zelle payment network and three of the banks that control it, JPMorgan Chase (JPM), Bank of America (BAC), and Wells Fargo (WFC),

A spokeswoman for the payment app’s parent company said the lawsuit against three large banks was “without merit, and legally and factually flawed.”

The CFPB has now dropped seven of the enforcement cases brought under former President Joe Biden, including one against Capital One.

The CFPB, which enforces regulations against the financial services industry, had claimed in its December 2024 lawsuit that the organizations had not effectively protected Zelle users “from widespread fraud,” causing customers of Bank of America, JPMorgan Chase, and Wells Fargo to lose a combined $870 million since Zelle launched in 2017.

Since Acting Director Russell Vought has taken over the CFPB, the agency has dropped at least a half dozen cases brought by his predecessor, Rohit Chopra.

The US Consumer Financial Protection Bureau (CFPB) has reportedly notified a federal court in Arizona that it is dismissing the lawsuit lodged in December against three banks over their management of the Zelle payment service.

CFPB dropped lawsuit against JPMorgan Chase, Wells Fargo, and Bank of America for alleged failure to prevent fraud on Zelle. Trump administration ended several consumer protection cases.