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Zelle is a peer-to-peer (P2P) payment app that allows users to send and receive money between bank accounts. Zelle has seen tremendous growth with over $1.5 trillion moved in the last five years.
Though Zelle claims that “99.9% payments are sent without any report of fraud or scams”, a fair share of scams are reported that involve Zelle as the payment method. In most cases, the Zelle scams often involve unsuspecting victims transferring money to unfamiliar users for goods or services which remain undelivered.
Zelle has been widely accepted by banks and credit unions -over 1,700 of them use it - and some have taken radical measures to counter Zelle scams including reimbursing the victim's money as the app itself does not offer refunds.
Instead of hoping for reimbursement, you can take several steps to avoid falling for Zelle scams in the first place. As they say, better safe than sorry. Read on to find out everything you need to know.
The simple answer is yes. You can easily get scammed through Zelle. In fact, the office of Sen. Elizabeth Warren (D-Mass.), reported that there were 255 million claims of scams and fraud from Zelle users in 2022, up from 90 million in 2020.
Since Zelle involves a quick or near-instant money transfer, it has become a hotbed for scammers. In most cases, scammers disguise themselves as somebody they are not in an attempt to defraud unsuspecting victims.
Scammers are getting creative with their tricks which is making people fall for Zelle scams. Here are several ways in which people are getting scammed through Zelle;
In March 2022, it was reported that a Californian woman lost $18,500 to scammers who called and texted her pretending to be a bank. In her case, the callers changed the number that showed up on the caller ID. This technique is called ‘spoofing’ and has led to many victims sending money thinking it’s a legit business or even a bank. Just like most Zelle scams, banks usually reuse to be able to reverse the payment as they claim the victims authorized the transaction.
Pro tip: Avoid making a payment as soon as you receive a call or text. The scammers want to pressure you into making a rushed decision to prevent you from thinking critically or talking about it with someone else. Additionally, check your email for any contact from your bank. Scammers can spoof the phone number but it is harder to spoof email IDs.
Customers are being targeted by scammers who claim to be calling from the victim’s bank and demand immediate payment. Bank of America and Wells Fargo are some of the commonly impersonated banks.
It all starts with a “security alert” claiming that you have approved a large payment. Most people panic upon receiving such messages and are directed to o reply to the text or call back to verify the charge.
In other cases, the Zelle scammers will call you directly claiming to be bank employees and that your account has been compromised. They tell the victims, that to avoid losing all the money in the bank account, they need to transfer the funds into another personal account. The employee offers to guide you on how to make the transfer.
However, the account you send the money to, which will even have your name, is controlled by scammers. The victims end up losing their savings in the process.
We have also seen Zelle scammers impersonate Zelle. They will send you an email claiming that your account has been put on hold and you need to verify your account by clicking on the link provided, which leads to a fake Zelle website.
Upon clicking on the link and entering your Zelle account details, the information is recorded by the scammers, and they can access your Zelle account.
Some examples of dubious sites used by Zelle scammers are:
help-zellesupport[.]me
uservrfy-zellep[.]info
Bmoharris-verification-zelle-review[.]serveusers[.]com
None of the above websites are owned by Zelle, even though the URLs contain ‘Zelle’. All of Zelle’s official communication originates from ‘zelle.com’.
Zelle scammers often target online sellers on platforms such as Facebook Marketplace. The most common Zelle Facebook Scam trick used is where the scammers will contact a seller claiming to be a buyer. However, they insist on using Zelle to send the payment.
When the seller accepts, they will send you a fake notification appearing to be from Zelle claiming you’ve received the money. Some go to the extent of sending you a fake bank email claiming the payment has been made. Following this, they contact you saying there was an issue with the payment and ask if you can refund them.
Others will falsely claim to have sent extra money and that you need to refund them the excess amount. In reality, if you fall for this Zelle Facebook Marketplace scam, you will end up sending your own money.
Source: Reddit
Pro tip: Avoid making refund payments without checking your Zelle or bank balance. Contact your bank directly before making any decisions to have them confirm if such a payment has been made to your account.
Job hunters have not been spared by Zelle scammers either as they prey on people in stressful and desperate situations. The scammers will email you telling you you’ve received a job offer. They will conduct a fake interview process and proceed to send you a check. This check is supposed to help you buy essentials for the job.
However, they tell you to send part some of the money to another person. But the check never gets cleared or is blocked or frozen. In the end, the job seeker ends up using their own money.
Source: Reddit
Pro tip: If you are a victim of such job scams, be sure to contact your bank’s fraud department to report the issue. Though it's hard for banks to reverse such payments, it will prevent your account from being charged or shut down for check fraud.
Zelle is described as a peer-to-peer payment system. Hence the idea is to help you send and receive money from your friends and family. According to Zelle, you should avoid sending money to strangers. Only accept money from people you know and trust.
If, for instance, an online client insists on paying using Zelle, and even offers to pay extra, be very cautious. The best way to beat Zelle Facebook Marketplace scams is to double-check if the payment has been reflected on your account. Never take a confirmation text or email from the potential client as the final word. Do your due diligence.
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