Zelle Fraud in Tampa Bay: What you need to know to protect yourself. Officials are watching this problem play out inTampa Bay and all over the country. Zelle, a popular peer-to-peer money transfer system, is owned by seven major banks and embedded into many online accounts. While it offers instant and irreversible transactions, it is also attractive to criminals, and consumers have reported losing millions. If you use Zelle, it is essential to be aware of the scams and frauds that come with it. TBT
Beware Of Bank Lookalikes?
Tricks and phishing techniques are the most common ways Zelle fraud occurs, according to the FBI. Scammers will often pretend to be banks, sending texts or emails that request confirmation of a large, fake Zelle payment. When the user replies that they didn’t authorize the transfer, the scammer follows up with a phone call pretending to be the bank, walking you through instructions on how to reverse the unauthorized claims. However, the money is transferred directly to the criminals, and it is almost impossible to get it back.
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What If I Approved The Transfer?
It’s important not to give out personal information over the phone, and to avoid clicking on text message links from people you don’t know. If you fall prey to a scam, it is tricky to get your money back. Some consumers have received money back while others haven’t. Banks may refuse to reimburse you for Zelle scams, claiming that the transactions were approved by the account holders.
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Does Anybody Really Care?
Two Democratic senators, Elizabeth Warren of Massachusetts and Robert Menendez of New Jersey, wrote a letter to Early Warning Services, Zelle’s parent company, demanding answers on how banks and Zelle determine which consumers get their money back and which don’t. They also want to know what’s being done to prevent the fraud in the first place.
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What If The Bank Says No?
If your bank refuses to reimburse you for a Zelle scam, it is crucial to quickly report it to local law enforcement and file a complaint with the Consumer Financial Protection Bureau. The CFPB has clarified its position on banks’ required compliance with the Electronic Fund Transfer Act of 1978, stating that “if a third party fraudulently induces a consumer into sharing account access information,” the consumer should receive the same protections as if the money were acquired from a stolen debit card or other banking “access device.”
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