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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.

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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.

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

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Rep. Al Green Files Articles of Impeachment Against President Trump

BLACKPRESSUSA NEWSWIRE — Rep. Green told Newsweek that he is moving on impeachment now before “tanks are rolling down the street.”

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By Lauren Burke

Congressman Al Green (D-TX) has filed articles of impeachment against President Trump. Rep. Green, 77, has served in Congress since 2005.  President Trump is the only President who has been impeached twice by the U.S. House of Representatives. Rep. Green told Newsweek that he is moving on impeachment now before “tanks are rolling down the street.” The impeachment resolution filed by Rep. Green on May 19, states that President Trump is, “unfit to represent the American values of decency and morality, respectability and civility, honesty, and propriety, reputability, and integrity, is unfit to defend the ideals that have made America great, is unfit to defend liberty and justice for all as extolled in the Pledge of Allegiance, is unfit to defend the American ideal of all persons being created equal as exalted in the Declaration of Independence, is unfit to ensure domestic tranquility, promote the general welfare and to ensure the blessings of liberty to ourselves and our posterity as lauded in the preamble to the United States Constitution, is unfit to protect government of the people…” Whether Rep. Green can force a vote in the U.S. House on impeachment remains an unknown issue. President Trump was impeached on December 18, 2019, for abuse of power and obstruction of Congress. He was then impeached a second time on January 13, 2021, for “Incitement of insurrection” in the wake of the violent January 6, 2021 attack on the U.S. Capitol by Trump’s supporters.

The White House stated Black Press USA on Rep. Green’s effort to impeach the President. “This week, Democrats ousted their DNC ‘leader,’ opposed the largest tax cut in history, and were exposed for actively covering up Joe Biden’s four-year cognitive decline. Now, Democrats have turned their sights to threatening impeachment. We are witnessing the collapse of the Democrat Party before our eyes. Not a single one of these efforts will help the American people. The contrast could not be more clear: President Trump is fighting for historic tax relief for the American people, Democrats are fighting themselves,” said White House Deputy Press Secretary Anna Kelly in a written statement. Several decisions and legal interpretations by the Trump Administration are currently being challenged in federal court. On May 15, the U.S. Supreme Court debated the issue of birthright citizenship after a legal challenge on the issue by the Trump Administration.

During that legal challenge, Justice Ketanji Brown Jackson challenged Trump’s solicitor general Dean John Sauer by saying, “Your argument seems to turn our justice system into a catch-me-if-you-can kind of regime … where everybody has to have a lawyer and file a lawsuit in order for the government to stop violating people’s rights.” Rep. Green’s impeachment resolution also focused on the issue of ignoring judicial orders by the executive branch. A notable example was the deportation case of Maryland father Kilmar Abrego Garcia. Garcia was deported to a prison in El Salvador by federal officials on March 15, 2025.“The Constitution does not tolerate willful disobedience of judicial orders — especially by officials of a coordinate branch who have sworn an oath to uphold it. To permit such officials to freely ‘annul the judgments of the courts of the United States’ would not just ‘destroy the rights acquired under those judgments’; it would make a solemn mockery’ of ‘the constitution itself.’” “You have no mandate,” Congressman Green stood up and yelled at President Trump during his State of the Union Speech on March 4. After the incident, Republicans who control the U.S. House considered sanctioning Rep. Green, but they did not complete an action against him.

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Affordable Childcare Remains a Barrier: Solutions in New Report

BLACKPRESSUSA NEWSWIRE — We also still haven’t put a dent in affordability for working families. That’s why we urgently need increased funding and new solutions.”

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While America’s childcare supply grew nationally, the price of that care continues to rise—placing affordable, high-quality care out of reach for many families. A new report released by Child Care Aware® of America (CCAoA), Child Care in America: 2024 Price & Supply, shows that despite promising signs of increased supply, affordability remains a major barrier — and underscores the need for increased sustained federal and state investment.

From 2023 to 2024, the number of childcare centers increased by 1.6% (to 92,613) and the supply of licensed family childcare (FCC) homes increased by 4.8% (to 98,807). The national growth in FCC homes’ supply is driven largely by four states (CA, KS, MA, VA) and is especially notable as it reverses a year-long downward trend.

At the same time, the national average price for childcare rose by 29% from 2020 to 2024, outpacing inflation and exceeding other major family household expenses like rent or mortgage payments in many states. Childcare is now so expensive that it consumes 10% of a married couple with children’s median household income and a staggering 35% for a single parent. In most states, families pay more for childcare than rent, mortgage payments, or in-state university tuition.

“Childcare supply is increasing, and that is a win—but it’s not enough,” said Susan Gale Perry, Chief Executive Officer of CCAoA. “Recent federal and state pandemic-era investments have stabilized and grown supply in some places, but a significant supply gap still exists — especially in rural communities and for infants and toddlers. We also still haven’t put a dent in affordability for working families. That’s why we urgently need increased funding and new solutions.”

CCAoA’s Childcare in America: 2024 Price & Supply report also found that:

  • The average price of childcare increased by 29% from 2020 to 2024, outpacing the national inflation rate of 22%.
  • In 45 states plus Washington, DC, the average annual price of center-based childcare for two children exceeded mortgage payments, in some states by up to 78%.
  • In 49 states plus Washington, DC, the price of center-based childcare for two children exceeded median rent payments ranging from 19% to over 100%.
  • In 41 states plus Washington, DC, infant care in a center cost more than in-state university tuition.

CCAoA urges policymakers to increase childcare funding at both state and federal levels to maintain the momentum of growing supply, address rising prices, and expand access to childcare for families. Federal funding increases have fallen short of the need and our research shows that total state investments in child care or preschool vary widely from state to state, putting children, families, and communities across America on an uneven playing field. Further, targeted investments in childcare supply building and stabilization and childcare workforce recruitment and retention strategies are essential to help sustain an adequate supply of high-quality childcare options nationwide.

Child Care Aware® of America (CCAoA) is the only national organization that supports every part of the childcare system. Together with an on-the-ground network of people doing the work in states and communities, it helps America become child care strong by providing research that drives effective practice and policy, building strong child care programs and professionals, helping families find and afford quality child care, delivering thought leadership to the military and direct service to its families, and providing a real-world understanding of what works and what doesn’t to spur policymakers into action and help them build solutions.

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Sex, Coercion, and Stardom: Diddy Case Mirrors Music’s Ugly History

BLACKPRESSUSA NEWSWIRE — It started with a Reddit post that didn’t just speculate on Diddy’s fate but questioned the very foundations of the culture that made him

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By Stacy M. Brown
Black Press USA Senior National Correspondent

As Sean “Diddy” Combs faces a federal sex trafficking case and the slow unraveling of his once-untouchable legacy, a larger question looms: Is this the moment the music industry finally confronts its darkest secrets?

It started with a Reddit post that didn’t just speculate on Diddy’s fate but questioned the very foundations of the culture that made him: “How much damage could Diddy do to the state of hip hop?” the user asked. “Supposedly, he has incriminating evidence against those who attended his parties. The same parties that had a lot of bad things happen, to say the least.” The implication was chilling—if Diddy were to cooperate with federal authorities, the fallout might not stop at his feet. Names floated in the post—Jay-Z, Beyoncé, Usher, Justin Bieber—aren’t confirmed in any court filings, but their inclusion highlights the breadth of Diddy’s influence and the potential reach of any revelations. If even a fraction of the speculation proves true, the reverberations wouldn’t stop at hip-hop—they’d hit every corner of the music industry. For his part, Combs denies all allegations. His legal team has described the now-infamous “freak-offs” as consensual encounters, part of his non-monogamous lifestyle. But prosecutors allege something much more sinister: a criminal enterprise powered by the machinery of his music and business empire—one that trafficked women, coerced labor, obstructed justice, and used influence and intimidation to maintain control. Still, for all the headlines Combs generates, his alleged crimes do not exist in isolation. The music industry has long tolerated, enabled, and even glamorized behavior that would trigger career-ending consequences in other arenas. Diddy’s story might be shocking—but it’s not new.

Rock music has its own rogue’s gallery. Jerry Lee Lewis nearly destroyed his career in 1958 after marrying his 13-year-old cousin. Elvis Presley met 14-year-old Priscilla Beaulieu when he was 24 and later moved her into his home in Memphis. In more recent years, Aerosmith’s Steven Tyler faced (and ultimately evaded) a lawsuit from a woman who says he sexually assaulted her in the 1970s when she was 17. A judge dismissed the case due to the statute of limitations. Phil Spector, the genius producer behind the “Wall of Sound,” died in prison after being convicted of murdering actress Lana Clarkson. Gary Glitter was convicted of possessing child pornography and later child sex abuse. Kid Rock and Creed frontman Scott Stapp were filmed with strippers in a sex tape that leaked online in 2006. A new biography of the Rolling Stones claims Mick Jagger had sexual relationships with at least two of his male bandmates, raising further questions about the power dynamics inside even the most celebrated groups.

Journalist Ann Powers, writing for NPR, once noted that the “history of rock turns on moments in which women and young boys were exploited in myriad financial, emotional and sexual ways.” Powers added: “From the teen-scream 1950s onward, one of the music’s fundamental functions has been to frame and express sexual feelings for and from the very young… relating to older men whose glamour and influence encourages trust, not caution.” This brings the spotlight back to Diddy—not just as an accused individual but as a symbol. He was once the archetype of success: Harlem-born mogul, founder of Bad Boy Records, and kingmaker behind artists like Notorious B.I.G., Faith Evans, Ma$e, 112, and French Montana. He transformed hip-hop into a global business and amassed influence far beyond the recording booth. He sold more than 500 million records, earned multiple Grammy Awards, and was honored by MTV, Howard University, and the City of New York—until those honors were swiftly revoked after a video surfaced showing him physically assaulting singer Cassie Ventura. Ventura, his longtime partner and protégé, has accused Combs of brutal physical abuse and psychological control. Her lawsuit and the video evidence ignited a wave of allegations from other women and men, describing similar patterns of coercion, manipulation, and fear. “This is not just about bad behavior. This is about systemic exploitation and abuse made possible by fame, money, and silence,” said one advocate for survivors in the entertainment industry.

While hip-hop has long been a target of criticism for misogyny and violence, what’s now being laid bare is a broader, genre-defying truth: from rock and pop to hip-hop and beyond, the music industry has operated for decades without accountability for its biggest stars. “Sex isn’t the problem,” one Reddit user responded. “Coercion via job opportunities is.” Another added, “Zero [impact], just like R. Kelly and MJ did zero to R&B,” referencing the R&B superstar’s conviction and Michael Jackson’s controversial legacy. Others argued hip hop would endure, regardless of Combs’ fate. Maybe it will. But the Diddy scandal pulls back the curtain—not just on the parties, the rumors, or the headlines—but on an industry-wide culture that has, for too long, allowed power to shield predation. As one survivor put it outside a recent court appearance: “This isn’t just a hip hop problem. It’s not even just a music problem. It’s a power problem.” And now, the music industry has to decide: Will it finally tune in, or will it keep playing the same old song?

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