Digital Payment Service Zelle Looks to Close Loopholes
*By Conor White*
Digital payment service Zelle is expected to grow its user base by 73 percent in 2018, and overtake rival Venmo in the process, according to a new forecast from eMarketer. But the growth has little to do with user preferences or word of mouth ー rather, it's because Zelle is readily available inside the apps of more than 30 U.S. banks.
With such wide availability, though, comes the risk of fraud.
"Any financial product is confronted with these kinds of fraud issues," explained Ravi Loganathan, head of business intelligence at Early Warning Services, the company that created the Zelle app. "On the fraud side, we are well below any industry benchmarks out there."
But according to an April report by the New York Times, Zelle is especially vulnerable thanks to aspects of its design: all someone needs is a phone number or email address, and the user is not always notified when money is transferred into or out of an account.
In an interview Wednesday on Cheddar, Loganathan insisted Early Warning Services is fixing the loopholes being exploited by hackers.
"What we are doing is working actively with the financial institutions to strengthen and to do the education and training that is needed for consumers to better understand how to use the service and then how to also detect fraudsters."
The improvements come at a crucial time. According to a new study from Zelle, 75 percent of millennials have used a digital peer-to-peer payment service at least once, and 49 percent use one weekly.
For the full segment, [click here.](https://cheddar.com/videos/zelle-examines-consumer-payment-tech-and-behavior)
Michael Cohen, Donald Trump's former personal lawyer, has been busy since completing his prison sentence in November. He's getting into the NFT space, selling his federal prison badge and the original manuscript of his book "Disloyal" as NFTs. Cohen joined Cheddar to discuss his latest venture and why he thinks there is still much to be revealed about his case.
VMG Consumer Acquisition Corp, a blank check company targeting consumer and retail companies, has officially hit Wall Street. The company listed its $200 million IPO on the NASDAQ, trading under the ticker symbol 'VMGAU.' Aarti Kapoor, CEO of VMG Consumer Acquisition Corp, joined Cheddar Movers to discuss.
Goldman Sachs is getting into the holiday giving spirit with its sixth annual Analyst Impact Fund competition. The Shark-Tank style contest gives Junior Analysts the chance to pitch a charity of their choice to senior leadership, with the winner being granted $250,000 to donate to their chosen non-profit. The team representing Lime Connect, the world's largest network of people with disabilities, has taken home this year's top prize. For more on this, Jim Esposito, Goldman Sachs Co-Head of the Investment Banking Division, and Julian Sanchez, one of this year's winners, joined Cheddar Movers.
Sprinklr CEO Ragy Thomas joined Wake Up With Cheddar's Baker Machado to discuss the customer experience company's latest earnings report and forecasts for future growth.
Carlo and Baker wrap up the week talking about the Biden economic boom that no one seems to notice, a verdict in the Jussie Smollett case, the first Starbucks union in America and the pleasures of the "dude nod."
According to the U.S. Department of Health and Human Services, more than 40 million people have had their personal health information exposed in data breaches this year alone. A number of these incidents have caused health care networks to crash for weeks. Founder and CEO of BlackCloak Chris Pierson, joined Cheddar to discuss more.
