DCUC Sends Letter Ahead of HSGAC Permanent Subcommittee on Investigations Hearing: “Fraud Alert!: Shedding Light on Zelle”

WASHINGTON, D.C. – On May 20, 2024, the Defense Credit Union Council’s (DCUC) Chief Advocacy Officer Jason Stverak sent a letter to The Honorable Richard Blumenthal, Chairman, and The Honorable Ron Johnson, Ranking Member, of the HSGAC Permanent Subcommittee on Investigations. The letter was sent ahead of the HSGAC Permanent Subcommittee on Investigations' upcoming hearing titled: Fraud Alert!: Shedding Light on Zelle.

Stverak’s letter shared how credit union members, especially those that are military, veterans, and family members of the armed forces, rely on services such as Zelle to make payments and move funds securely from their credit union accounts to other businesses and people.
 
“[T]hey’re often unable to meet face-to-face due to their military duties such as being deployed overseas. Zelle seamlessly integrates into consumers’ banking experience as they access through their financial institution’s online or mobile app, making it a fast, safe, and easy way to send money to people they know and trust.”
 
The letter also noted how credit unions and Zelle offer consumers educational resources to not only identify and avoid scams, but also provide alerts and reminders before funds are transferred and payments are sent.
 
“The Zelle Network commitment to protecting consumers is reflected in the fact that more than 99.9% of Zelle transactions have been completed without a report of fraud or scam, which is a direct result of the robust array of consumer protection measures Zelle and our credit unions utilize. It is important to remember that all funds transferred using Zelle remain in, and are transferred between, insured deposit accounts…Zelle and its participating financial institutions, including our member credit unions, are continuously working to ensure that Zelle is the safest P2P service by deploying a multi-layered approach that identifies, stops, and removes bad actors.”
 
Stverak highlighted how fraud and scams are not unique to Zelle and urged policymakers to “focus on real solutions for preventing fraud and scams and stopping the criminals who are responsible for committing fraud, in order to preserve consumer confidence in the financial system.”
 
Please see DCUC’s official letter for the full comments. To learn more about DCUC’s advocacy, visit www.DCUC.org/advocacy.