A federal regulator has sued JPMorgan Chase, Wells Fargo and Bank of America. The Consumer Financial Protection Bureau says the banks failed to protect hundreds of thousands of consumers from rampant fraud on the popular payments network Zelle, in violation of consumer financial laws. In the federal civil complaint, the agency asserts that banks rushed to get the peer-to-peer payments platform to market without effective safeguards against fraud. Then, after consumers complained about being defrauded on the service, largely denied them relief. JPMorgan, Wells Fargo and Bank of America are the largest financial institutions on the Zelle network, accounting for 73% of activity last year.
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