When Customers Say Their Money Was Stolen on Zelle, Banks Often Refuse to Pay

Argelys Oriach was on his way home from a shopping trip one evening in March when he was robbed at gunpoint. The thief demanded his iPhone and passcode. Mr. Oriach turned them over and fled.

The next morning, Mr. Oriach, who lives in Brooklyn, said he discovered that the thief had drained $8,294 from his bank accounts at Capital One, using multiple money transfer apps including Zelle. He contacted Capital One, fully expecting the bank to…