Zelle — the banking industry’s answer to PayPal, Venmo and CashApp — has become a digital payment powerhouse. It’s now baked into more than 2,000 banking apps, making it easy (and free) to transfer money instantly from one party to another.
Scammed With Zelle Over the Holidays? Banks May Now Reverse the Charges – CNET
In 2022, Zelle handled 2.3 billion payments adding up to $629 billion.
How do I get my money back if I’m a victim of a Zelle scam?
Immediately contact the financial institution that was part of the transaction. That allows the business to start investigating as soon as possible. Because of the instant nature of Zelle, you’ll want to respond quickly.
Here are the links and phone numbers for reporting Zelle scams to some of the biggest banks in the US:
For years, according to many local reports, banks were reluctant to reimburse losses from Zelle phishing scams, since the transactions were actually approved by the account holders. Often, victims had money returned only after news reports of their scams put pressure on banks to do so.
On Aug. 30, 2023, Zelle announced new safety measures including a “new consumer reimbursement benefit for specific scam types.” On Nov. 14, Reuters reported that banks participating in the Zelle payment system had begun reimbursing victims of imposter scams who had been “duped into sending money to scammers claiming to be from a government agency, bank or existing service provider.”
Although the holiday season is once again bringing an expected increase in scams, recent news reports indicate that Zelle’s new safety policy is helping consumers. A Seattle public teacher who was defrauded of $2,000 by a person posing as a representative of his credit union was refunded by BECU thanks to the new law, according to KIRO 7 News.
If your bank refuses to reimburse you for a Zelle scam, your only recourse (other than pitching your story to local media) is to file a complaint with the Consumer Finance Protection Bureau.
For more on protecting yourself from fraud, see the best identity theft protection and monitoring services and learn about rising scams on social media.
