Buzz
Zelle was designed for quick, simple transactions between friends and family who trust each other. However, there’s no protection against fraud or recourse to recover your funds once sent via Zelle. It wasn’t long before fraudsters identified this gap—finding a way to deceive you by having you send money to yourself.
How does the scam unfold?
A scammer contacts you via text, phone, or email, often claiming to be from your bank, using the 'Did you approve this $500 purchase?' strategy. Since no real transaction took place, people typically reply with 'no' (we’ve explained why this is a mistake). The scammer then claims your account is being drained and urges you to send the funds to 'yourself' through Zelle.
The scam targets those who are not well-versed with Zelle. The fraudster, pretending to be a banker, convinces the victim to send money to an account that uses their name but swaps the phone number for the scammer’s. When the victim transfers the money, it appears to be sent to themselves, but it’s actually going to the scammer’s number. The name on the account doesn't matter—you could change your dad’s contact to 'Barack Obama,' but it’s the phone number or email attached to the account that’s crucial.
How to protect yourself from scams like these
If you receive a message from a 'bank' stating that money is being withdrawn from your account, never respond to the text, call back, or reply to the email. Instead, contact your bank directly using the official customer service number to verify if the claim is legitimate.
In addition, avoid sending money via Zelle to anyone you don’t know. Your bank likely won’t be able to assist you if you fall victim to a scam through Zelle. The responsibility for such transactions is yours, so stay alert and continue to educate yourself on the latest scams to avoid becoming a victim.
What actions to take if you’ve been scammed
As mentioned before, your bank is unlikely to help you recover your money if it was sent through Zelle. However, some banks, like Wells Fargo, have refunded certain victims. It's worth informing your bank about the incident, as they might be able to assist in some cases.
The next step is to report the scam to the authorities. If it happened online, you can file a complaint with the Internet Crime Complaint Center. Otherwise, your best option is to report the fraud to the Federal Trade Commission.
