Industry observers and experts responded to reports ofvulnerabilities in the Zelle Network, which enables participatinginstitutions to send money to anyone with a U.S. credit union orbank account.
“The same features that make Zelle so useful for customers, itsspeed and ubiquity, have made it irresistible to thieves. Hackersand con artists have used the system to steal from victims,” StacyCowley of New York Times wrote. The article stated, “The scale ofthe problem is hard to pinpoint, because Zelle is fairly new andbanks do not report much data about it.”
Apps such as Venmo (owned by PayPal), Popmoney, Square Cash andApple Pay made digital cash transfers fast and easy. Some financialinstitutions united to create Zelle, as a competing offering,operated by Early Warning Services, a Scottsdale, Ariz. consortiumjointly owned by seven large banks. An estimated $75 billion wentthrough Zelle last year.
Continue Reading for Free
Register and gain access to:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts.
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders.
- Educational webcasts, white papers, and ebooks from industry thought leaders.
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com.
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Roy Urrico
Roy W. Urrico specializes in articles about financial technology and services for Credit Union Times, as well as ghostwriting, copywriting, and case studies. Also: writer/editor of a semi-annual newsletter for Association for Financial Technology since 1997 and history projects funded by the U.S Interior Department, National Park Service and Warren County (N.Y.).
