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Zelle Fraud Is Rising. And Banks Aren’t Coming to the Rescue

NNPA NEWSWIRE — “Authorized” vs “Unauthorized:” Under a federal rule known as Regulation E, banks are technically only liable to cover fraudulent activity when it involves “unauthorized” transactions. Say, when someone steals your credit card and makes purchases without your permission. But if someone persuades you to send them $500 through a phishing scam, banks consider that “authorized” and won’t reimburse those funds.
The post Zelle Fraud Is Rising. And Banks Aren’t Coming to the Rescue first appeared on BlackPressUSA.

Published

3 years ago

October 4, 2022

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By Analysis by Allison Morrow and CNN Business | The Atlanta Voice

Zelle, the popular payment app, is under fire for how it handles (or rather, doesn’t handle) fraud and scams that have exploded on the platform in recent years.

The New York Times called Zelle out in two reports earlier this year. That grabbed the attention of US senators, who pressed the CEOs of the nation’s large banks that own the platform in hearings last month and began an investigation into the service.

Here’s the deal: On Monday, Senator Elizabeth Warren’s office said its investigation into Zelle showed that fraud and theft are not only rampant but getting worse. And once people report fraudulent transactions, banks are reimbursing only a small fraction of the swindled customers.

“Big banks own and profit from Zelle but are failing to make their customers whole for both authorized and unauthorized fraudulent activity on the platform, despite their claims that it is safe,” Warren’s office wrote.

Key things to know:

Zelle (rhymes with “tell”) was created in 2017 as the banking industry’s answer to Venmo and Cash App.
The fintech companies behind those apps were doing what big banks had failed to do for decades — make transferring money to your friend who just paid for dinner easy and free and fast.
So the big banks got together and created Zelle, which was lame and almost no one used it till around 2020, when digital payments took off in response to the pandemic.
Zelle is now by far the largest peer-to-peer payment system in America. Last year, according to Zelle, transactions totaled $490 billion, up 59% from the year before. (PayPal-owned Venmo, its closest rival, handled $230 billion.)
The service is operated by Early Warning Systems, a fintech company owned by seven of the US’s largest banks.

Naturally, where the internet and money collide is where scammers get to work.

Zelle’s size and accessibility — it’s built right into participating banks’ apps — make it the “preferred tool of fraudsters and other bad actors,” according to the report from Warren’s office.

Among the investigation’s key findings, which corroborate anecdotal evidence reported by the Times:

Banks are not repaying 90% of cases in which customers were tricked into making payments on Zelle.

An estimated $440 million was lost by Zelle users through frauds and scams in 2021. But banks “appear not to have provided sufficient recourse to their customers.”

“Authorized” vs “Unauthorized:” Under a federal rule known as Regulation E, banks are technically only liable to cover fraudulent activity when it involves “unauthorized” transactions. Say, when someone steals your credit card and makes purchases without your permission. But if someone persuades you to send them $500 through a phishing scam, banks consider that “authorized” and won’t reimburse those funds.

BUT… The bank data reviewed by Warren’s office suggest even the bulk of unauthorized cases are going unpaid. For example: PNC Bank indicated that its customers reported 10,683 cases of unauthorized payments totaling over $10.6 million. It refunded only 1,495 cases, totaling $1.46 million.

Zelle sought to downplay the report and didn’t specifically address Warren’s allegations Monday. In a statement, the company said: “Tens of millions of consumers use Zelle without incident, with more than 99.9% of payments completed without any report of fraud or scam,” adding that the proportion of fraud and scams has steadily decreased as its user numbers have climbed.

The Bank Policy Institute, a banking industry group, also disputed Warren’s findings and claimed that Zelle’s rivals Venmo and CashApp receive more reports of disputed transactions.

“Zelle is the safest peer-to-peer network,” it said in a statement Monday. “For any real discussion of online fraud, the focus belongs elsewhere.”

BOTTOM LINE

It’s kind of crazy to remember how anyone moved money among friends before the advent of payment apps. Did I actually carry cash with me? On the first every month did I take my little checkbook out and literally write out my portion of the rent on a magic slip of paper and then just hand it to my roommates? Wild. It would not surprise me if the original idea for a payments app came from a restaurant server who was fed up with splitting bills unevenly across eight different cards.

But that’s the pre-internet world Regulation E was made for. It’s a 1978 rule that only got a 21st century electronic payments update by the Consumer Financial Protection Bureau late last year. It wasn’t made for the world of instant payments, and could hardly have envisioned how easy the internet would make it to swindle people out of their money.

Warren’s report on Zelle could add pressure on regulators including the CFPB to update its guidance.

“Given this uncertain landscape and the banks’ abdication of responsibility, regulatory clarity is needed to further protect Zelle users,” researchers wrote in the report, noting that the CFPB has regulatory authority over peer-to-peer platforms including Zelle.

The post Zelle fraud is rising. And banks aren’t coming to the rescue appeared first on The Atlanta Voice.

The post Zelle Fraud Is Rising. And Banks Aren’t Coming to the Rescue first appeared on BlackPressUSA.

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OP-ED: The Dream Cannot be Realized Without Financial Freedom

NNPA NEWSWIRE — Dr. King spent the final chapter of his life pushing the country to face economic injustice. The day before he was tragically assassinated, Dr. King stood with sanitation workers in Memphis to call for economic equality. He helped launch the Poor People’s Campaign because he knew freedom hollowed out by poverty is not freedom at all. Dr. King kept pushing America to match its promises with practical pathways.

Published

3 days ago

January 19, 2026

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By Ben Crump

We honor Dr. Martin Luther King Jr. each January with speeches, service projects, and by reciting powerful quotes we know by heart.

But too many Black families will spend much of MLK Day the same way they spend most Mondays.

With the gas tank hovering near empty, hoping the car can go until the next paycheck arrives. With a prescription waiting at the pharmacy counter because they cannot afford the cost.

With a paycheck that has to stretch further than what seems possible.

Dr. King understood that true dignity means being able to afford and build a good life. In one of his clearest reminders, he asked what it means to “eat at an integrated lunch counter” if you cannot “buy a hamburger and a cup of coffee.”

That question still carries weight for many. Personal freedom will not be achieved without financial freedom.

Dr. King spent the final chapter of his life pushing the country to face economic injustice. The day before he was tragically assassinated, Dr. King stood with sanitation workers in Memphis to call for economic equality. He helped launch the Poor People’s Campaign because he knew freedom hollowed out by poverty is not freedom at all. Dr. King kept pushing America to match its promises with practical pathways.

That is the part of his legacy we should sit with this MLK Day.

This work has never been more important or needed. The cost of groceries, rent, and childcare have become an increased burden. And many families go from stable to scrambling with just one unexpected expense.

These realities are on display in a recent national survey commissioned by DreamFi, echoing what so many families already feel so deeply. More than one in four respondents told us they used check-cashing services in the past year. This finding makes it clear that too many households still need simpler and more accessible options for moving money.

The survey also shows how unexpected expenses impact families. Only 41% of Black respondents said they could cover a $1,000 emergency, compared with 56% of white respondents. When a tire blows out, when a child gets sick, when hours get cut, the question is not theoretical. The question is immediate and the impact is real.

We must shine a light on this struggle and work to equip families with tools to build better futures. We must recognize Dr. King’s wisdom and acknowledge that financial stability is a civil rights issue, because financial instability limits the ability to have choices.

The survey also found hope that can guide how we move forward.

Black families are not turning away from the idea of building stability. In fact, they are reaching for it. In the survey, 79% of Black respondents said they sought out financial education in the past six months. Ours is a community hungry for tools and a fair shot at creating a better tomorrow.

So, what does it mean to honor Dr. King right now?

It means we get practical.

It means we expand access to clear, trustworthy financial education that respects people’s time and speaks to real solutions. It means we support savings pathways that help families prepare for emergencies before emergencies arrive. It means we encourage options that make routine transactions easier and less costly, so a family is not paying extra simply to manage their own money.

Most of all, it means we stop treating financial instability as normal. Because normal is not the same as acceptable.

Dr. King asked America to make its promises real. The best way to honor him now is to provide opportunities for everyone to achieve Dr. King’s dream.

Ben Crump is a nationally renowned civil rights attorney and founder of Ben Crump Law. Known as “Black America’s attorney general,” he has represented families in some of the most high-profile civil rights cases of our time, including those of George Floyd, Breonna Taylor, Tyre Nichols, and Ahmaud Arbery. He is also co-founder of DreamFi, a financial empowerment platform focused on helping everyday people build stability through practical resources.

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Four Stolen Futures: Will H-E-B Do The Right Thing?

BLACKPRESSUSA – An 18-wheeler carrying H-E-B merchandise struck a disabled car on US 87 near Dalhart, resulting in the deaths of four young Texas women. Dashcam footage shows their hazard lights flashing before impact. As H-E-B points to subsidiary distance, families wait for accountability.

Published

3 days ago

January 18, 2026

Oakland Post

By TotallyRandie
Social Media Correspondent, BlackPressUSA

Eighty thousand pounds of steel doesn’t just collide—it obliterates. While corporate lawyers hide behind the sterile jargon of liability and subsidiaries, four Houston families are left haunted by viral footage of a tragedy that should never have happened. On November 5, 2025, a stretch of US 87 became a crime scene of corporate negligence, claiming four vibrant Texan futures in a heartbeat.

The dashcam footage is a nightmare in real-time. A black Nissan Altima, hazards blinking in a desperate plea for space, crawls along the right lane near Dalhart. The four young women inside did exactly what we are taught to do during an emergency: slowed down and put on hazards. They were then met by an 18-wheeler hauling H-E-B merchandise. The truck plowed into them at full speed—no brakes, no swerve, no mercy.

The lives of Breanna Brantley, Taylor White, Myunique Johnson, and Lakeisha Brown were not just lost; they were stolen. To understand the gravity of this loss, you have to realize these women were just starting their lives.

Breanna Brantley (30): A woman entering the prime of her life, a new chapter of wisdom and growth.
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Taylor White (27): A wanderlust traveler and the “glue” for her younger siblings; she was their primary mother figure.
Myunique Johnson (20): Affectionately known as Mimi. Her life was just starting to bloom
Lakeisha Brown (19): A basketball standout set for Blinn College this spring—the beacon of hope meant to rewrite her family’s financial history.

In Texas, political math often attempts to cap the value of a human life, but the $250,000 ceiling suggested by current tort reform is an insult to these families. Breanna, Taylor, Myunique, and Lakeisha were more than just Black women; they were daughters, sisters, and athletes whose lives were abruptly taken away. They deserved milestones—graduations, weddings, and the simple right to grow old—not to be reduced to an apology for a “tragic loss.”

While the dashcam footage suggests an open-and-shut case, Attorney Rodney Jones of Rodney Jones Law Group P.C. revealed in our exclusive interview that reality is far more tangled. The road to justice could be a long, drawn-out process depending on how HEB decides to handle the case.

“This is a senseless accident that could have easily been prevented,” Jones says. “They had the right to possess that lane, and that truck driver had the responsibility to pay attention”. H-E-B is a Texas institution, but its response has triggered deep public outcry. While issuing an apology, the company quickly distanced itself, claiming the carrier wasn’t a “direct” H-E-B truck—despite hauling H-E-B products and being operated by Parkway, a known H-E-B subsidiary.

The driver, Guadalupe Villarreal, reportedly has a history of speeding and prior rear-end accidents. Jones is firm: “I’m looking strictly at his ability to be behind that 18-wheeler. This is a simple matter of a grossly negligent driver and the companies that put him on the road being held accountable.”

“H-E-B can’t bring them back, but they can make sure this never happens again,” Jones argues. “There is no price for a life, but there must be a price for negligence. It’s time for H-E-B to stop pointing fingers and start vetting their drivers properly to protect the public.”

While the public demands criminal charges, Jones notes that the legal wheel turns slowly. However, in the civil arena, H-E-B’s silence is deafening; the company has yet to contact the families directly.

“We desire a speedy resolution so we don’t have to drag this out,” Jones concluded. “H-E-B is a beloved chain here in Texas. Hopefully, they come to the table to resolve this fast. I feel like the longer they make these families wait for closure, the more it should cost.”

The ball is in H-E-B’s court. Will they live up to the Texas-strong values they advertise, or will they let a legal loophole define their legacy?

Bell @TotallyRandie
Multimedia Correspondent & Digital Creator
BlackPressUsa.Com/TotallyRandie.com /Stylemagazine.com

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Travis Scott Teaches Us How to Give Forward

BLACKPRESSUSA NEWSWIRE It’s not just about the gift under the tree in December; it’s about the skills, the confidence, and the opportunities provided in the months leading up to it.

Published

5 days ago

January 16, 2026

Oakland Post

By TotallyRandie

The fourth quarter of the year is often dubbed “giving season,” and for good reason. As October fades into November, the cultural zeitgeist shifts toward gratitude and the spirit of the holidays. For most, this means making a yearly donation to a local food bank or participating in a toy drive for the less fortunate. But for Houston’s own Travis Scott, “giving season” isn’t a seasonal trend—it’s a sophisticated, year-round blueprint for community empowerment.

Since launching the Cactus Jack Foundation in November 2020 alongside his sister, Jordan Webster, Scott has moved beyond the traditional celebrity check-writing model. While the world watches his every move on global stages, his foundation has been quietly and consistently pouring into the soil that raised him. Whether it’s supporting SWAC baseball athletes or funding the Waymon Webster Scholarship Fund for HBCU students, the mission is clear: provide the resources for the next generation to not just survive, but to lead.

From the Streets to the Stars

This past fall, the foundation took its most ambitious leap yet. In October 2025, Cactus Jack partnered with Space Center Houston—the official visitor center of NASA Johnson Space Center—to launch a first-of-its-kind STEM incubator.

The program was specifically designed for students within the Houston Independent School District (HISD), many of whom come from underserved communities where a career in aerospace often feels like a light-year away. For eight weeks, these middle schoolers weren’t just reading about science; they were living it.

Through a mix of virtual workshops and hands-on sessions at the Cact.Us Design Center and TXRX Labs, students were paired with actual NASA engineers. They weren’t tasked with busywork; they were challenged to solve real-world problems of space habitation, including:

Lunar Water Filtration: Designing systems to purify water on the moon.
Space Habitats: Creating structures designed for food preservation in extreme environments.
Robotics: Developing rovers capable of navigating uneven lunar terrain.

The Power of Being Present

The program culminated in a private showcase at Space Center Houston this past December. Standing alongside retired NASA astronaut and Chief Science Officer Megan McArthur, Scott watched as HISD students presented high-fidelity prototypes. In that room, the disparity usually associated with these neighborhoods vanished, replaced by the technical language of CAD modeling and systems thinking.

But the work didn’t stop at the laboratory. The 6th Annual “Winter Wonderland Toy Drive” at Texas Southern University took place the very next day, showcasing the foundation’s dual-threat approach to philanthropy. While the STEM program looked toward the future, the toy drive took care of the present, putting smiles on the faces of thousands of Houston families with toys, groceries, and essential goods.

“Opportunities like this are being offered to help enrich our students’ lives and inspire them to pursue careers in fields where they can not only thrive but also bring back solutions to their communities.” — Travis Scott

More Than a Headline

Critics and social media skeptics often tweet that “Travis Scott is everywhere but Houston.” The data and the faces of the students at Space Center Houston suggest otherwise. While his music may be a global export, his legacy is being built brick by brick (and circuit by circuit) in HISD classrooms.

By bridging the gap between hip-hop culture and NASA’s high-tech corridors, the Cactus Jack Foundation is teaching us a vital lesson in giving forward. It’s not just about the gift under the tree in December; it’s about the skills, the confidence, and the “out of this world” opportunities provided in the months leading up to it.

Travis Scott may be a global icon, but in Houston, he’s becoming something much more important: a catalyst for the next generation of innovators.