US Banks Witness 1,000% Surge in Digital Scams As JPMorgan Chase, Wells Fargo and Bank of America Customers Lose $166,000,000 on Zelle in One Year: Report

US banks are witnessing a massive surge in sophisticated digital scams, according to a new report.
The number of social engineering scams targeting both US and Canadian bank customers has exploded 1,000% in the last year, according to the cybersecurity firm BioCatch.
Social engineering scammers use deceptive tactics to impersonate entities like banks or family members, tricking victims into transferring money or disclosing sensitive information.
The new data comes as a new congressional report finds JPMorgan Chase, Wells Fargo and Bank of America customers reported losing $166 million to scams on Zelle in 2023, with the banks refusing to reimburse 62% of the time.
And although Zelle’s parent company Early Warning Services – which is collectively owned by major US banks – says it’s pushing to specifically reimburse more social engineering scams, the Senate’s Permanent Subcommittee on Investigations finds it’s not yet happening.
“The Member Banks rejected more imposter scams than they reimbursed after EWS adopted the new policy in June 30, 2023.
Zelle’s 2,100 Member Banks reported approximately 54,000 disputes to EWS as imposter scams from June 30, 2023, through December 31, 2023.
Of these, approximately 24,000 disputes, or about 44%, were deemed eligible for reimbursement under the 2023 EWS Policy, leaving approximately 30,000 disputes, or about 56% of reported imposter scams, ineligible for reimbursement.”
BioCatch tracks bank customers’ behavioral data to help locate illicit accounts, with American Express, Barclays and HSBC among its clients.
The firm warns its data shows AI-powered schemes like deepfakes are increasingly being used to power social engineering attacks.
“More than half of those surveyed said they’d lost trust in people and suffered emotional stress after falling victim to a scam. Nearly one in five victims said their loss disrupted their family life.
As these scams grow more prevalent and sophisticated, a data-driven approach that combines historical account data as well as behavioral and device intelligence is critical to stopping scams in real-time and saving victims and banks from significant losses.”
BioCatch also says account-opening fraud dropped nearly 60% in the last year amid a rise in effective security measures, while check and deposit fraud tripled in the same time frame.
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Texas Lawmaker Files Bill to Establish Strategic Bitcoin Reserve

Republican State Representative Giovanni Capriglione has officially filed to create a strategic Bitcoin (BTC) reserve for Texas.
According to him, the bill is meant to enhance fiscal stability while solidifying the state’s leadership in digital innovation.
The Proposed Legislation
Capriglione announced the proposed Texas Strategic Bitcoin Reserve Act (H.B. No. 1598) during an X Spaces event on Thursday, where he shared the document highlighting BTC’s decentralized nature, finite supply, and potential as a strategic asset to strengthen the state’s financial stability and resilience.
The legislator believes the initiative will combat inflation and offer a hedge against economic volatility. He described the reserve as a “win-win” investment that would foster innovation while providing a broad framework for managing cryptocurrency holdings.
The Act suggests creating a Bitcoin reserve within the Texas state treasury, managed as a special fund outside the general revenue fund under the state comptroller’s supervision. If approved, it will allow area residents to pay taxes and fees and make donations in cryptocurrency, with the holdings retained for at least five years.
The framework also enables residents to contribute Bitcoin to the reserve, emphasizing public participation in the state’s financial innovation.
A two-thirds majority in both legislative houses will enable the bill’s provisions to take effect immediately; otherwise, it will become applicable on September 1, 2025. Additionally, the law will expire on September 1, 2035, unless extended by future amendments.
Texas Moves Ahead as States Embrace Bitcoin Integration
Capriglione’s proposal is part of a growing movement across the United States to adopt Bitcoin. Representative Mike Cabell recently introduced a similar bill in Pennsylvania, which would permit up to 10% of the state’s funds to be invested in the largest digital asset.
In a November 12 memo, Cabell highlighted BTC’s potential use as a protection against inflation, citing its adoption by financial firms and governments.
“In recent years, many financial institutions and sovereign governments, including the United States, have invested in Bitcoin to shield their portfolios from economic volatility,” he said.
The lawmaker’s motion followed Pennsylvania’s passage of a “Bitcoin rights bill” and mirrors broader legislative efforts nationwide. Other jurisdictions, including Oklahoma, Louisiana, Montana, and Arkansas, have passed laws protecting crypto mining and self-custody rights.
The momentum also aligns with President-elect Donald Trump’s favorable stance on virtual currency. His promise to establish a Bitcoin stockpile in the United States, made on the campaign trail while soliciting the crypto community’s votes, was recently reiterated by Wyoming Senator Cynthia Lummis.
On November 6, she declared her intention to push for the passing of the Boosting Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN) Act, which would ensure the U.S. Treasury bought 1 million BTC over five years.
The post Texas Lawmaker Files Bill to Establish Strategic Bitcoin Reserve appeared first on CryptoPotato.
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