Because Zelle payments are both fast and often irreversible, criminals using the app to conduct scams and take advantage of its users are a big problem.
Many Zelle users who have been scammed won’t get reimbursed for their loss.
In 2023, customers of the three biggest Zelle partner banks who reported fraud only got back about 38% of the money they lost, according to a congressional investigation.
Here are the most common scams, and how you can prevent becoming a victim.
1. Account takeover
To assume control of someone’s account, a scammer only needs to gain access to the user’s login information.
If a scammer gains account access, they can change the account password to lock out the victim and transfer money to themselves.
Beware of fraudulent emails, texts and phone calls from people pretending to be from your bank attempting to obtain account login credentials. Legitimate sources won’t ask for that information.
2. Phony job listings
Scammers will often make fake job postings using social media, or even legitimate recruiting sites.
The compensation is typically too good to be true, and the interview process will usually take place over email or instant messaging.
After the “job offer” is made, victims will be asked to send money for things like background checks, training materials and supplies.
Of course, everything about the position is fake, and the only money moving is going directly to the scammer.
3. Fake charities
A scammer posing as a legitimate charity may ask you to donate, usually after a natural disaster or humanitarian crisis.
This type of charity scam will usually create a sense of urgency and appeal to your sympathy for the situation.
Don’t ever donate without contacting the charity directly.
4. Cheated on marketplace sales
If you’re trying to sell something on a site like Craigslist or Facebook Marketplace, it’s possible for a buyer to trick you out of some money by using fake payment confirmations.
A clever Zelle scam that some marketplace buyers will attempt goes like this: They offer to pay for your item through Zelle, then send a false image of a bank statement showing they overpaid for the item.
They then ask you to return the surplus amount via Zelle. But, of course, their original Zelle payment to you never happened.
A similar setup can potentially happen in-person if physical checks and money orders are used.
In another version of this marketplace scam, the fake buyer sends a payment confirmation and requests that you send the item. If you do so without confirming the payment actually appeared in your bank account, you lose the item.
Alternatively, if you’re a buyer, a scammer seller can request that you pay in advance for an item via Zelle then disappear after you send the money.
Before buying or selling, do some online checking to determine who you’re dealing with.
5. Phony rental listings
Some online scams bill themselves as legitimate rental listings, but it’s a real estate scam using a fake listing.
These usually come with a rental price that’s too good to be true.
This kind of listing can sometimes even be copies of real listings for rental units that are currently available.
The scammer may pressure you into sending money right away so your fictitious security deposit and first month of rent are processed before anyone else’s.
Scammers listing fake rentals may also refuse to set up an in-person meeting at the property. Be suspicious if you can’t see the property and check county records to verify the owner.
6. Impersonation
Some scammers will try to impersonate people you might trust, like a romantic partner, coworker or maybe even someone you know.
A fraudster posing as a romantic interest will usually try to connect with you first before bringing some urgent situation to your attention. They may even share personal details with you to create a more realistic emotional bond before asking for cash.
If someone is trying to impersonate or con you by imitating a close friend or family, they will usually reach out via text message, email or sometimes a social media platform.
Their normally fantastical and very real-sounding story usually ends in them asking for some quick help in the form of money. Never send money without verifying who you’re talking to.
7. Bogus refunds
In some cases, a scammer might reach out with a story about how you were defrauded. They might even impersonate your bank or Zelle and provide a fake confirmation of a phony refund.
If they trick you into handing over bank account information, you could end up sending them money.
How to avoid Zelle scams
Most fraudulent Zelle transactions where a scammer tricks a victim into willingly making a payment can’t be reversed.
That makes protecting your financial information doubly important, which you can do with these tips:
- Be extremely cautious when dealing with links and attachments sent via emails and SMS texts, even ones that look like they come from legitimate companies and financial institutions. Always double-check the sender’s address and URL link before clicking.
- A bank or credit union will never ask you for login credentials for your account. If a phone call requesting such info sounds strange, contact your bank to confirm the story before helping.
- While convenient, sending or receiving money through Zelle from a stranger comes with uncertainty. If someone you don’t know asks to send money via Zelle, end the conversation.
- Be suspicious of charity donation requests, marketplace buyers looking to “overpay,” unknown numbers and new online profiles.
Add a Comment