What's Happening?
Consumer Reports has issued a warning regarding TikTok videos that falsely claim users can receive payouts from Zelle and Cash App by filing complaints with the Consumer Financial Protection Bureau (CFPB). Social media influencers Daraine Delevante and Gilbert Graim Jr. have been promoting these claims, suggesting that even those who were not victims of scams could receive compensation. Graim's TikTok video encourages viewers to file claims, stating, 'Whether it happened to you or not, go put in a claim, because they’re going to have to run you that check.' These influencers have also been selling complaint templates and credit repair guides. Zelle has responded by stating that consumers were misled into filing complaints based on a fabricated settlement, while Cash App has claimed to have improved its processes for handling customer complaints.
Why It's Important?
The spread of misinformation regarding financial compensation from peer-to-peer payment platforms poses significant risks to consumers, particularly those already facing financial difficulties. The false claims exploit the reduced oversight due to the CFPB's funding challenges, potentially leading to increased fraudulent activities. Consumers may waste time and resources pursuing nonexistent payouts, and the platforms themselves may face reputational damage and increased scrutiny. This situation highlights the need for improved consumer education and protection against online scams, as well as the importance of maintaining robust regulatory oversight.
What's Next?
Consumers are advised to remain vigilant and skeptical of online posts promising easy money. Consumer Reports recommends verifying the legitimacy of claims before sending money online and including detailed information when filing complaints to strengthen their cases. The CFPB, FTC, and state attorneys general may need to increase efforts to combat misinformation and protect consumers from scams. Payment platforms like Zelle and Cash App may continue to enhance their fraud detection and response mechanisms to prevent further exploitation.
