U.S. regulators launched an investigation into the way big banks handled fraudulent transactions on the Zelle platform

The U.S. Consumer Financial Protection Bureau (CFPB)'s is investigating several of the largest U.S. banks for their handling of customer funds on the payments platform Zelle, which has been facing scrutiny for fraud and fraudulent transactions, according to the Wall Street Journal.

According to people familiar with the matter, the CFPB's investigation focuses on large banks such as JPMorgan Chase, Bank of America and Wells Fargo. The investigation is broad in scope and aims to examine how banks respond when customers dispute transactions made through Zelle.

Zelle, which is owned by a consortium of seven of the largest U.S. banks, including JPMorgan Chase, Wells Fargo and Bank of America, is said to be currently processing more transactions than the popular payments platform Venmo, but with rapid growth has come a rise in complaints that banks are not doing enough to help customers recover fraudulent remittances.