Payment app used by major banks targeted in scam

Payment app used by major banks targeted in scam

Zelle is a payment app much like Venmo or the Cash App except that it’s tied directly to your bank account. The Zelle service is offered by major banks like Bank of America, Chase, and Fifth-Third among others. With Venmo and other apps, scammers can only drain your account of whatever amount you put in it. With Zelle, scammers now have the potential to drain your entire bank account and you don’t even have to use the Zelle app for it to happen.

The scam starts out with a phone call where the scammers pose as your bank including using a spoofed phone number. They say that there is some suspicious activity with your account and that they need your login information in order to verify your identity. The scammers then use this information to lock you out of your own online account. They then activate the Zelle app under your account and transfer the money to Zelle accounts that were opened on burner phones. To the bank, it appears like you’ve made the changes to your account and used the Zelle app to make payments. Zelle itself uses two-factor authentication to try to prevent scams but if the user gives out their information to scammers there’s basically nothing Zelle can do.

To better prevent this from happening to you it is recommended that you either activate the Zelle app through your bank or have the bank turn it off. If you receive a call from someone saying they’re from your bank, they will always have your account information and won’t need to ask for it. Even if you believe the call is from your bank it’s always better to call the bank back at their customer service number listed on the back of your card or in the bank’s mobile app.