The Consumer Financial Protection Bureau (CFPB) alleged that various factors, including Zelle's relatively 'limited identification methods', allowed fraud to run rampant.

The government agency sued Zelle’s operating company and four of its partner banks (JPMorgan Chase, Bank Of America and Wells Fargo). The CFPB says the service hasn’t done enough to protect consumers from fraud.

Action against Bank of America, JPMorgan Chase and Wells Fargo may not survive President-elect Donald J. Trump’s return to office.

The CFPB was established when Congress passed and President Barack Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act into law. The statute was enacted to prevent the events that led to the 2008 Great Recession, the most profound economic crash and downturn since the 1929 Great Depression.

Some banks and banking trade groups are suing the Consumer Financial Protection Bureau over a finalized rule that limits overdraft fees banks can charge

The U.S. Consumer Financial Protection Bureau said on Friday it filed a lawsuit against JPMorgan Chase, Bank of America and Wells Fargo for failing to protect consumers from alleged "widespread fraud" on payments platform Zelle.

Three of the biggest U.S. banks are being sued by a top financial regulator that says they allowed fraud to run rampant on the payments platform Zelle and failed to put safeguards in place to protect users.

The CFPB is suing the fintech firm Early Warning Services — the bank-owned company that runs Zelle — as well as JPMorgan Chase, Bank of America, and Wells Fargo, claiming that customers of the banks lost more than $870 million over Zelle's seven-year existence.

The CFPB has filed a lawsuit against Zelle and three major US banks over allegations of failing to adequately protect consumers from fraud.