Zelle has been making headlines lately because scammers are using it more frequently to take advantage of unsuspecting people. But unlike credit and debit cards, financial institutions won’t take responsibility for any money lost in a P2P scam. Since people knowingly send the payments, it isn’t considered fraudulent. Therefore, the best way to protect yourself is to know the most common tricks of the trade and how to avoid becoming a victim of Zelle scams.
What Is Zelle?
Zelle is a peer-to-peer (P2P) payment service that sends money directly from your linked account. Since it works with more than 1,000 banking apps, it’s a convenient way to manage electronic payments. And, you only need your email address or phone number to complete the transaction to instantly send and receive money.
However, it also makes it more difficult to detect fraudulent activity. With fewer protections in place, it has become a more attractive platform for scammers.
5 Ways to Avoid Becoming a Victim of Zelle Scams
1. Treat Zelle payments like cash.
Even though it is an electronic payment, it’s best to think of Zelle like you do cash. Once payment is made, the transactions are non-reversible. So, if you make a mistake or typo that sends money to the wrong person or phone number, there is no process to demand a refund. Putting it into this context may help think carefully before using it.
2. Only exchange money with known users.
In that same line of thought, it’s best to only use it to send or receive money from people you know. Many con artists impersonate people and organizations that you know and trust to obtain the funds. So if someone reaches out to you without prior discussion or notification, it’s always a good idea to contact them directly through established channels to make sure it isn’t a scam.
On the other hand, it also can happen when you are the recipient. Some scammers use stolen credit cards or cancel the account as soon as they get what they need. Another thing to watch out for is if they request money back for an overpayment. Both of these are frequent tactics to trick people out of their money.
Unfortunately, there are fewer paths of recourse if you lose money to Zelle scams. Once the money is sent, it’s gone.
3. Be wary of urgent payment requests.
Just like phishing emails, anything marked urgent should send up a red flag. These messages are intended to induce panic so people make rash decisions. When they think their finances are at risk, people often make irrational decisions they wouldn’t under normal circumstances. So, if a company is contacting you about missed payments and disconnecting services for non-payment, contact them through a dedicated line to verify it before you make a decision you’ll regret.
4. Ask questions if they become insistent.
Sometimes, these urgent messages are real. When people default on payments, they may get notices by mail or phone if it is turned over to a collection agency. However, most reputable businesses offer multiple ways to make payments.
When someone calls and insists on using Zelle only, it’s a good sign you are talking to a scammer. Always do your research and speak with a known company representative to make sure the person and claim are legitimate before sending money.
5. Enable your security features.
Lastly, you should always secure your accounts to ensure no one but you can access them. Some steps may seem cumbersome, but they offer another layer of protection for your finances.
First, you should choose a strong password and change it regularly. You can also use multi-factor authentication such as a PIN, fingerprint, face recognition, or an SMS/email message for verification. And, if you link accounts to credit instead of debit cards, credit card companies have additional protocols to recover money you may lose to Zelle scams.
What Should You Do If You Suspect a Scam?
Sadly, people fall victim to scams more often than you realize. If you suspect that you are dealing with a scammer, you can use the BBB scam tracker to look up the most common ones.
But if you have already become a victim, you probably won’t get your money back. However, it’s still a good idea to alert the authorities. You can alert your bank, file a complaint with the Consumer Financial Protection Bureau, and report the scam to Zelle online or by calling 844-428-8543 to protect other users.
While Zelle has provided a more convenient payment option, it’s important to take the necessary precautions to protect your finances and help others to do the same.
Read More
- What are the Benefits of Using Digital Wallets?
- How To Keep Your Finances Safe After Losing Your Mobile Phone
- Phone and Internet Scams to Watch Out For
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.
