Today in TechREG, allegations of fraud and scams against Walmart, Wells Fargo and Zelle followed very different paths. Whereas the lawsuit against the banking giant and the digital payment network was dropped, the Federal Trade Commission (FTC) sued the retailer in court. Also, EU lawmakers are ironing out the last details of two bills that will impose significant restrictions on digital platforms to get a final approval in the last plenary session before the summer. The Federal Reserve pushed back some changes in the Fedwire Fund Services to prioritize the adoption of real-time-payment network FedNow.
Class-Action Lawsuit Dropped Against Wells Fargo, Zelle
A class-action lawsuit launched against banking giant Wells Fargo and digital payments network Zelle was dropped, Law360 reported.
Seattle resident Luke Hartsock claimed he was scammed out of $7,500 and filed a lawsuit against Wells Fargo and Zelle on June 1 for allegedly failing to protect customers. On Tuesday (June 28) Hartsock filed a notice of voluntary dismissal without prejudice in Washington federal court. No reasons were given, and the plaintiff’s counsel couldn’t be reached for comment, Law360 reported.
EU Lawmakers Rush to Pass Online Platform Bills in Next Week’s Plenary Vote
The European Parliament will hold the last plenary session before the summer recess from July 4 to July 7, and lawmakers are rushing to get all the legal texts ready for a vote.
But there are two long-awaited proposals that may be in the spotlight, and Google, Apple, Meta and other Big Tech companies may be paying close attention to them. The Digital Markets Act (DMA) and the Digital Services Act (DSA) may receive formal approval by the plenary of the EU Parliament. This would mean that these two legal texts would pass the last procedural hurdle in Parliament: they would be sent to the EU Council and then published in the EU Official Journal.
FTC Takes Walmart to Court Over Money Transfer Fraud Allegations
The Federal Trade Commission (FTC) has sued Walmart for letting its money transfer services be corrupted by fraudsters — which reportedly resulted in customers being scammed for “hundreds of millions of dollars,” according to a Tuesday (June 28) FTC press release.
The FTC said Walmart had turned a blind eye “for years” as scammers took advantage of the retail giant’s lack of security for money transfer services. The FTC alleged Walmart didn’t properly train its employees, nor did it warn customers about the risks. It also reportedly used procedures that allowed fraudsters to cash out at its stores.
CFPB: States Can Issue Their Own Credit Reporting Laws
States can issue their own fair credit reporting laws that protect residents, the U.S. Consumer Financial Protection Bureau (CFPB) said in a ruling Tuesday (June 28). The bureau’s interpretive ruling said that with a few exceptions, states can enact their own laws that are stricter than the federal Fair Credit Reporting Act (FCRA).
“Given the intrusive surveillance that Americans face every day, it is critical that states can protect their citizens from abuse and misuse of data,” CFPB Director Rohit Chopra said in a news release. “The legal interpretation issued today makes clear that federal law does not automatically hit delete on state data protections.”
Santander: ‘Celebrity-Endorsed’ Crypto Scams in UK Could Double
Banco Santander is warning customers in the United Kingdom that celebrity-endorsed cryptocurrency scams are on track to nearly double this year. According to an announcement on the company’s website Tuesday (June 28), case volumes rose 61% in the first quarter compared to the previous three months, with the average value of the scams leaping 65% year over year to 11,872 British pounds (about $14,500). About 2 million pounds (about $2.4 million) was lost to these schemes during this quarter.
Fed Prioritizes FedNow, Delays Fedwire Funds Service Changes
The Federal Reserve Board announced on Monday (June 27), the final timeline and other implementation details for the adoption of a new Fedwire Funds Service message format. The Fed has decided to delay the implementation of these changes until March 10, 2025, from the original date of November 2023. The reason for this delay is that the Fed is prioritizing the implementation of the new real-time-payment network, known as FedNow Service, which is expected to be launched also in 2023.
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