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Fraud on P2P Networks Hits 12% of Bank Customers in the U.S.

Digital Transactions reports that some 12% of U.S. customers have lost money to fraud on a peer-to-peer payment network, while 11% have seen it happen to a family member, according to survey results released earlier this month by J.D. Power. The networks cited by the respondents were Zelle, Venmo, and PayPal.

For the survey, the company canvassed 4,000 bank customers across the country in September and October and asked also about the respondents’ sentiments regarding their general financial health and economic pressures such as the likelihood of a recession.

The fraud data take on increased relevance given headlines in recent months focusing on so-called scams, or transfers that users authorize on P2P payments apps but that turn out to have been induced by a fraudster. Zelle in particular has become the focus of criticism from lawmakers for these transactions because of a policy by which the network does not reimburse users in such instances. As the J.D. Power survey illustrates, this and other frauds also afflict competing networks.

Read the complete Digital Transactions article at the link below.