JPMorgan Chase, BofA and Wells Fargo Sued For 'Festering' Fraud On Zelle

Rohit Chopra, director of the Consumer Financial Protection Bureau, testifies before a Senate committee at the U.S. Capitol in June. The federal agency sued three of the nation's largest banks, alleging they failed to protect consumers from fraud on the payment system Zelle. (Credit: Michael A. McCoy/Getty Images)

A federal watchdog sued three of the nation's largest banks and the operator of the payment service Zelle, alleging they failed to protect consumers and allowed "fraud to fester" on the system.

The Consumer Financial Protection Bureau sued Bank of America, JPMorgan Chase and Wells Fargo, the owners of Zelle, in federal court in Arizona for "enabling systemic fraud and playing dumb when consumers were exploited."