Even sending money to yourself through Zelle is a scam

By Greg Collier

Before we get started with today’s blog post, we wanted to share this article from The Guardian about why we shouldn’t blame the victims of scams. Please keep in mind that anyone could fall for a scam, and it doesn’t help to mock those that do.

In today’s post, we’re going to discuss a scam that we’ve been focusing on a lot lately. Once again, the Zelle scam has turned up in the headlines again. For those who may not know, Zelle is a payment app that is co-owned by a number of high-profile banks. Since at least Fall of last year, scammers have been using Zelle in a customer service impersonation scam to get their victims to empty their bank accounts.

The way the scam works is the scammer will send you a text message that appears to come from your bank. The text message asks if you recently made a large purchase or transfer. You’re asked to reply YES or NO to the text message. If you reply to the text message, you’ll receive a call from the scammer posing as your bank’s fraud department. The scammer will tell you that to protect your money, it needs to be moved through Zelle. What the scammer is really doing is walking you through the directions on how to move your money from your account to the scammer’s account.

Recently, another level to this scam has been added. A number of Wells Fargo customers have reported falling for the Zelle scam. However, in the latest instances, the scammers had their victims open Zelle accounts in the victims’ names before transferring the money. This lends an appearance of legitimacy to the scam, since the account is in the customer’s name. Unfortunately, that doesn’t stop the scammers from taking the money sent to the new Zelle account.

Since Zelle is co-owned by some of the nation’s leading banks, many consumers think that there is some form of protection against scams, but that is not the case. Victims of the Zelle scam rarely ever recover their money.

There are a few ways to protect yourself from this scam. The first is to not respond to text messages that appear to come from your bank. If there is an issue with your account, you’re always better off calling the customer service number on the back of your debit card. You can also visit your bank’s local branch during business hours. The best way to protect yourself is to keep in mind that payment apps like Zelle, Venmo, and Cash App, are only supposed to be used with people you know. If someone says you need to use one of these apps to protect your money, they’re more than likely trying to rip you off.