‘Bank of America, Chase, Wells Fargo…’: Man issues warning for anyone who uses Zelle. These banks may owe you money

Zelle users may be in for an unexpected payday.

At least, that's what one TikTok user believes after discovering a lawsuit against the money transfer app.

In a viral video with over 4.1 million views, TikToker gilgra2025 (@gilgra2025) divulged some important information about the filing and what it means for those who use Zelle.

Is Zelle being sued for fraud?

In an official report, the Consumer Financial Protection Bureau (CFPB) announced its lawsuit. The filing targeted Zelle and "three of the nation's largest banks for failing to protect consumers from widespread fraud."

The banks named in the suit are JPMorgan Chase, Bank of America, and Wells Fargo. Zelle's operator, "Early Warning Services," was also named.

According to the lawsuit, the peer-to-peer payment service was "rushed" onto the market to compete with other payment apps like Venmo and Cash App.

However, the suit alleged Zelle failed to implement "effective consumer safeguards."

“The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle,” CFPB Director Rohit Chopra explained in the announcement. “By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves.”

Early Warning Services was responsible for the design and operation of Zelle. It is co-owned by Bank of America, Capital One, JPMorgan Chase, PNC Bank, Truist, U.S. Bank, and Wells Fargo.

Early warnings about Zelle fraud all over TikTok

Gilgra2025 urged viewers who previously used Zelle to head over to the CFPB website and file a complaint.

The TikToker explained that the app did not properly warn people that money sent to the wrong receiver couldn't be recouped.

"They did not give us the correct warning," he said. "They did not let us know."

He hopes the lawsuit will result in customers receiving financial restitution.

The Daily Dot covered many previous reports of consumers losing money to Zelle fraud.

One fraud analyst went viral after warning others to avoid sending money to people they do not know with the app.

“Zelle is treated like a cash transaction. It is treated like once you gave the cash to someone, that’s it; it’s gone,” she explains. “We as banks don’t have recovery rights for that, and it literally says on Zelle’s website [that] Zelle’s intention was for friends and family.”

Another user went viral after mistakenly receiving a $700 random Zelle payment and refusing to return it. The customer believed he might have been the target of a Zelle scam.

The fears are well-founded.

According to the CFPB, Zelle customers reported losses exceeding $870 million at just three banks over a seven-year period since the app's launch in 2017.

Still, Bank of America stands behind Zelle's service

After the lawsuit was announced, the bank issued a statement that read:

"More than 99.95 percent of transactions across the Zelle network go through without incident. When a client has an issue, we work directly with them. We strongly disagree with the CFPB’s effort to impose huge new costs on the 2,200 banks and credit unions that offer the free Zelle service to clients. 23 million Bank of America clients have embraced Zelle, regularly using it to send money to friends, family and people they trust."

Viewers had mixed reactions to the lawsuit

Mixed responses to the news flooded the video's comments section.

Some reported their own issues using the app.

"I lost 1K to a wrong person," user STORMI THE commented.

"I’ve had an issue, sent $400 and they said they didn’t own Zelle so my bank could do nothing. This was years ago at the start of it," user Teenie Earth Angel said.

However, many defended the app and hoped it would not be discontinued.

"Ima be mad when my banks stop offering Zelle bc y'all don't know you should make sure u know who ur sending money to w/o getting a warning," user Melinda Estrada wrote.

"I’ve been usuing zelle since it came out and it always had that pop up are you sure this person is registered as this," user Sierra commented.

Others echoed the position.

"I’ve used Zelle since it started and i have WF and that disclaimer 'warning' has always been provided. The issue is that people don’t read the info provided," user DMunoz wrote.

The Daily Dot reached out to JPMorgan Chase, Bank of America, Wells Fargo, Zelle, and TikTok user gilgra2025 by email for comment.

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