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
Although there are dozens of scams and even more variations of them, here are 5 of the most common Zelle scams and how you can avoid becoming a victim.
1. Impersonation Scams
One of the most common tactics scammers use is to impersonate people and organizations you know and trust. Sometimes they will pretend to be a representative from your financial institution or send email communication about issues with your account. These messages look official. But, they contain links that will route you to fake sites to steal your login credentials and take over your account. Other times, they may clone information of a friend or family member and reach out for help with a financial emergency. These requests usually include a direct payment to the scammers’ accounts.
If you receive a request like this without prior discussion or notification, it’s probably a scam. This is especially true if you receive messages from someone you don’t speak to regularly. Therefore, it’s always a good idea to contact the person or organization directly through established channels to verify their claims. With so many different types of impersonation scams, it’s wise to limit using Zelle with known users.
2. Debt Collection Scams
Although it is another version of an impersonation scam, debt collection scams are one of the most effective Zelle scams out there. In this scenario, someone will pose as a debt collector and may even threaten legal action. They intend 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.
But just like phishing emails, anything marked urgent and anyone pressuring you for immediate payment should send up a red flag. Additionally, if they insist on payment only through Zelle, there’s a good chance you are talking to a scammer. If a company contacts you about missed payments or disconnection of services for non-payment, contact them through a dedicated line to verify it before you make a decision you’ll regret.
3. Online Selling Scams
While many scams require you to send money, they can also happen when you are receiving payment for selling things through online marketplaces. In these instances, someone will contact you about the goods or services you are posting and offer to pay with Zelle.
However, 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 common ploys 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 nearly impossible to recover.
4. Money Mule Scams
With more people working remotely, money mule scams are becoming more common. These ruses focus on job seekers who are looking for lucrative work-from-home opportunities. They will put you through the interview process and then ask for a deposit via Zelle to purchase the necessary equipment for the job.
Unfortunately, the job and company are usually fake. After the transfer, the victim is now both out of work and deeper in debt. Therefore, you should always research the companies you are interviewing with and remember that reputable companies won’t require you to purchase equipment.
5. Romance Scams
Romance scams are some of the most common and successful ways scammer make their money. And, it has become even easier with the rising popularity of online dating. They hide in plain sight, then prey on the lonely and vulnerable who willingly send them money. They play on people’s emotions who think they are helping someone they care about with a real financial need.
Because scammers can be so convincing, these are also some of the most difficult to detect. People may not even realize they are being scammed and think they are simply in a long-distance relationship. Although you can research people, scammers usually borrow real identities to appear legitimate. Unfortunately, the only surefire way to avoid this scam is to never send money to someone you haven’t met.
Protecting Yourself and Your Finances
While there are increasing threats and exposure to online scammers, there are a few simple steps you can take to protect yourself and your finances.
- Think of Zelle payments like cash; once you make a payment, the money is gone.
- Never give out your personal information or password.
- Only exchange money with known users.
- Be wary of urgent payment requests.
- Ask questions if they become insistent.
- Communicate and make payments through official channels.
- Enable your security features.
What Should You Do If You Suspect Zelle Scams?
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
Come back to what you love! Dollardig.com is the most reliable cash-back site on the web. Just sign up, click, shop, and get full cashback!
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.
Comments