On March 5, the U.S. District Court for the District of Arizona received the CFPB’s notice of dismissal with prejudice in a lawsuit against several banks involving alleged widespread digital payment fraud on a popular peer-to-peer payment service created by the banks. The payment service had also been named as a defendant in the lawsuit. The Bureau did not provide any reasoning for the dismissal of the case, initially filed in December 2024, but it alleged consumers suffered more than $870 million in losses due to “systemic fraud” that exploited users of the payment service and that was ignored by the banking defendants (covered by InfoBytes here).
