10:47 AM EDT, 08/07/2024 (MT Newswires) -- (Updates with Wells Fargo ( WFC ) and JPMorgan ( JPM ) responses in the fourth paragraph.)

JPMorgan Chase ( JPM ) , Bank of America ( BAC ) and Wells Fargo ( WFC ) are among the banks being investigated by regulators over their handling of customer funds on the Zelle platform, The Wall Street Journal reported Wednesday, citing people familiar with the matter.

The Consumer Financial Protection Bureau is looking into how the banks respond when customers dispute transactions made via Zelle, which has faced scrutiny over scams, according to the report.

Specifically, the CFPB is probing whether banks are being proactive enough in shutting down accounts controlled by scammers and whether they are properly vetting the identities of customers who end up being bad actors, the people reportedly told the WSJ.

Wells Fargo ( WFC ) declined MT Newswires' request for comment, while JPMorgan ( JPM ) said it had nothing to add. Bank of America ( BAC ) did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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