My mom was recently phished. The scammer got into her bank accounts and charged a bunch of air india tickets to her credit card and used zelle to transfer money out. When we reported it to the bank they said it wasn't covered because their fraud protection doesn't cover scams. So the banks just don't care. (It was Capital One FYI)
> their fraud protection doesn't cover scams
Eh?
When I talked to the bank I was like "So if she had just lied and said she didn't know how they got her information she would have been covered, but since she was honest and admitted to being scammed she is getting punished?"
A retail bank with a massive advertising budget has to pinch pennies somewhere.
One of Zelle's explicit design goals, couched in customer convenience, was as a mechanism to offload as much fraud liability onto the customer and away from the member banks.
It wasn't just the zelle they didn't cover. They are expecting her to pay back the $3k in airline tickets charged to her visa (not a debit card).
Why would insurance companies care? These banks never have to take significant losses for their incompetence. If they were fined 1% of profit every time they were hacked, then I could see all sorts of mitigations being considered.
The bank doesn't take the loss, the customer does.
Here where I live many insurance companies are subsidiaries to the banks.
insurance companies operate the same way! customer service departments aren't a hotbed of security awareness (coming from personal experience - no sleight to CS reps in general; it's systemic as much as it is personal).