Zelle, a popular payment app, has unfortunately become a playground for scammers. In 2021, users lost a whopping $440 million to scams on this platform. The worst part? Zelle says they can’t help you get your money back. You can report fraud to your bank, but they’re only obligated to refund you for unauthorized transactions. If you willingly sent a payment via Zelle, even if you were tricked into it, it’s considered authorized. Even when transactions are deemed unauthorized, only about 10% of victims see their money again.
This has led to a lot of criticism for Zelle and its partner banks. Senator Elizabeth Warren has even called out big banks for the "rampant fraud and theft on Zelle" and their refusal to refund victims. Lawmakers are now pushing banks to better protect Zelle users. But until then, it’s up to you to keep your money safe.
So, what scams should you watch out for? Here are the most common ones:
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Spoofing Scams: You get a message that looks like it’s from a trusted source, like your bank, saying there’s suspicious activity on your Zelle account. They ask for your login info or personal details to stop the fraud. But it’s all a trick. They’re just pretending to be someone else to steal your information.
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Me-to-Me Scams: This is a twist on the spoofing scam. You get a message from someone pretending to be your bank, saying there’s a fraudulent payment from your account. They tell you to transfer money from your Zelle account back to your bank account to stop it. But the account they’re directing you to isn’t yours, it’s theirs.
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Impersonation Scams: You get a message from someone you know, saying they’re in trouble and need money fast. Or, you get a message from a company you recognize, asking for a payment. In both cases, the sender isn’t who they claim to be. They’re just trying to trick you into sending money.
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Facebook Marketplace & Craigslist Scams: You find a great deal on Facebook Marketplace or Craigslist. The seller asks for payment via Zelle. But once you send the money, they disappear. Another version of this scam involves fake rental listings. You send a security deposit via Zelle, but the property isn’t actually for rent.
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Romance Scams: You meet someone online and quickly fall for them. But they always have an excuse for why they can’t meet in person. Then, they ask you for money for an emergency or some other need. They might not even be who they say they are. They just want your money.
So, how can you protect yourself from these scams? Here are some tips:
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Watch for Red Flags: Be wary of unsolicited messages, things that sound too good to be true, emotional manipulation, pressure to act quickly, and sellers who insist on Zelle payments.
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Don’t Send Money to Strangers: Only use Zelle to send money to people you trust. If you’re buying something, use a payment system with purchase protection, like Venmo or PayPal.
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Verify Who You’re Talking To: If you get a request from a company or person you know, double-check that it’s really them.
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Don’t Respond to Unsolicited Messages: If you get a message or call out of the blue, it’s probably a scam.
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Be Careful with Email Links: Don’t click on links from unknown senders. Even if the sender is someone you recognize, check the link before clicking.
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Use Two-Factor Authentication: This adds an extra layer of protection to your account.
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Never Share Your Login Info: There’s no legitimate reason for someone to ask for your login details.
If you do fall victim to a Zelle scam, your chances of getting your money back are slim. But you should still report the fraud to your bank and the Consumer Financial Protection Bureau. You can also report the scam to Zelle, the FBI Internet Crime Complaint Center, and the Federal Trade Commission to help protect other users. And remember, Zelle transfers are instant. Once you hit "send," your money is gone. So always send with caution.
