What's Happening?
Consumer Reports has issued a warning regarding false claims circulating on TikTok about receiving payouts from peer-to-peer payment platforms like Zelle and Cash App. Social media influencers Daraine Delevante and Gilbert Graim Jr. have been promoting
the idea that filing a complaint with the Consumer Financial Protection Bureau (CFPB) can lead to compensation, even for those who were not victims of scams. These influencers have amassed millions of views, offering complaint templates for a fee, despite the lack of oversight due to the CFPB's funding issues. Both Zelle and Cash App have responded, with Zelle stating that consumers were misled by social media into filing complaints based on a fabricated settlement, and Cash App highlighting improvements in handling consumer complaints.
Why It's Important?
The spread of misinformation regarding financial compensation from payment platforms poses a significant risk to consumers, particularly those already facing financial difficulties. The claims exploit the reduced oversight of the CFPB, potentially leading individuals to waste time and resources on fraudulent claims. This situation underscores the importance of verifying information before acting on it, especially in financial matters. The response from Zelle and Cash App indicates a need for increased vigilance and consumer education to prevent further exploitation by scammers.
