I was a victim of this scam in early October 2021. Scammed through my Wells Fargo mobile app Zelle. I’ve been fighting Wells Fargo ever since. Regulation E of the Electronic Funds Transfer Act actually does apply here - being induced by fraud to make a transfer you think is reversing a fraudulent transfer means you authorized restoring funds you understand have been stolen from you. It does NOT mean you authorized handing over your hard-earned money to a criminal.
Banks need to step up and restore all stolen funds to their customers. Banks assumed the heightened risk of fraud when they decided to profit from Zelle - which THEY OWN - by embedding it in their mobile apps. The Office of Comptroller of Currency or Consumer Financial Protection Bureau needs to hold banks accountable. Instead, banks serve as “investigator” and adjudicator of fraud claims to which they are interested parties - clearly an unfair business practice. The whole situation is disgusting, and nobody but a handful of members of the news media seems to take action to protect consumers.