digital payments Archives

Electronic Fund Transfer Fraud with Brad Rustin

Electronic Fund Transfer Fraud with Brad Rustin Grifters, scammers, con artists Sen. Elizabeth Warren, who championed the creation of Consumer Financial Protection Bureau (CFPB), calls the Zelle digital payments network a “preferred tool for grifters like romance scammers, cryptocurrency con artists, and those who prowl social media sites advertising concert tickets and purebred puppies — only to disappear with buyers’ cash after they pay.” 18 million Americans defrauded Scams and fraud committed via the Zelle platform and other peer-to-peer services are surging. According to one lawsuit 18 million Americans were defrauded by schemes perpetrated via apps like Zelle in 2020. Some 1,500 member banks and credit unions participate in the Zelle service. People sent $490 billion via the app in 2021. But Zelle owner, Early Warning, and its consortium comprising Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo, have refused to refund customers for most of their losses. Sen. Warren issued a report that the claims for fraud received by just four banks will likely exceed $255 million by the end of 2022 – a $165 million increase over 2020. The senator and consumers say Zelle is violating federal consumer protection law. What is fraud? The heart of the problem is this: banks and consumers do not agree on the definition [...]

Digital Payments in Class Administration

September 9th, 2021|Categories: HB Risk Notes|Tags: Aideen Gaffney, baker hostetler, bitcoin, class actions, CLE, cotchett pitre, cryptocurrency, data privacy, data security, digital payments, epiq, Judge Segal, Signature Resolution, tousley brain stephens|

Epiq presents DIGITAL PAYMENTS Best Practices for Efficiency in Class Actions Recorded: Sept. 23, 2020 75 minutes CLE credit: 1+ Registration includes recording, materials, and answers to your questions. TAKE IT NOW! Epiq presents a CLE-eligible webinar Digital Payments Best Practices for Efficiency in Class Actions Recorded Live | Sept. 23, 2020 produced by HB Litigation Conferences Modern life increasingly relies on digital solutions. Nothing has made that more apparent than the novel coronavirus pandemic. In terms of class action settlement payments, the impetus has never been greater to transition to the e-payment realm for security, convenience, cost-reduction, and improved fund disbursement. Class counsel and claims administrators have experimented for years with pre-paid debit cards, automated clearing house (ACH) deposits, and wire transfers, while others have tested judicial appetites for registered-user payment systems like PayPal and Venmo. However, digital payment schemes with multiple options -- the primary of which is direct deposit -- seem to be emerging as the favored solution. Though class action notice is increasingly being digitized, aided by the 2018 amendments to Federal Rule of Civil Procedure, particularly Rule 23(c)(2)(B), which permits notice by electronic means like emails and digital and social media, payment itself has lagged behind. Even with these challenges, electronic payment distribution is now a viable option. Courts are [...]