Tagged: Zelle Toggle Comment Threads | Keyboard Shortcuts

  • Geebo 9:00 am on February 3, 2023 Permalink | Reply
    Tags: , , , , , Zelle   

    The Digital Trap: How Technology leaves the Young Vulnerable to Scams 

    By Greg Collier

    When we discuss older Americans being susceptible to scams, it’s usually because of their unfamiliarity with some modern technology. However, being too familiar with tech can also make someone vulnerable to scams.

    For example, young people, who use payment apps like Cash App and Venmo regularly, could be convinced to use those apps to their own detriment.

    Recently, a college student from Louisiana fell victim to a phony check scam. She thought she was applying for a job as a nanny. The scammers sent the student checks for thousands of dollars, and told her to deposit them in her own bank account. She was then instructed to send out payments for things like appliances and cleaning supplies. These payments were sent out through the Zelle and Venmo apps.

    Afterward, the bank discovered that the checks were fraudulent, but the student had already sent out all the money. In these cases, the banks hold the account holder responsible for the lost money, even if it was lost through deceitful means.

    Statistically, younger people are just as vulnerable to scams as the elderly, if not more so. This is possibly because of their unfamiliarity with traditional banking transactions. This is not intended as a criticism of young people, but rather a reminder that not everything needs to be done digitally.

    As far as this scam goes, never deposit any checks intended for business into your personal account. Real employers will never ask you to do that. Anyone who asks you to deposit a check then asks you to make payments for them is just trying to scam you.

    Lastly, apps like Zelle, Venmo, and Cash App should only be used with friends and family. These apps make it too easy for scammers to cash out and disappear after taking your money. The companies behind the apps are typically helpless to do much after the transaction goes through, or so they say. So, if you do get scammed through these apps, a refund probably isn’t likely. Please keep in mind that while these apps may be popular in your social circles, most legitimate businesses do not accept payments through them.

     

  • Geebo 9:00 am on January 19, 2023 Permalink | Reply
    Tags: , , , , , , Zelle   

    Scam Round Up: Fake check scam targets lower income families and more 

    Scam Round Up: Fake check scam targets lower income families and more

    By Greg Collier

    This week on the round up we’re bringing you two scams that take advantage of the disadvantaged and one that can affect any business and its customers.

    ***

    The business email compromise scam is one of the more insidious scams. While it targets businesses, it’s usually the customers who lose the most. This is when scammers hijack a business’ email client and use it to deceive customers into making payments to the scammers. Typically, we’ve seen this when scammers convince homebuyers to send their closing costs to the scammers.

    More recently, scammers hijacked the email client of a roofing company in Florida. If you’ll recall, many Florida residents are still recovering from Hurricane Ian. The scammers sent emails to customers asking them to send their payments through the Zelle payment app. One customer lost $1800 to the scammers.

    If a business that you’re dealing with that you’re expected to make a large payment to, be wary if you’re suddenly asked to pay in nontraditional means. These can be payment apps like Venmo and Zelle, wire transfers, or cryptocurrency just to name a few. If you receive one of these emails, call the business to verify the payment request.

    ***

    Our next scam is one of the oldest scams out there and predates the internet. Residents in Pennsylvania have reported receiving letters in the mail that are promising them an inheritance. This isn’t just a tired plot device from old TV shows, and victims have fallen for this scam.

    One of two things typically happen with the inheritance scam. The victim is either asked to make some kind of payment to secure the inheritance, or they’re asked for their banking information. Either way, it can be a devastating financial loss for the victims, especially if they’re in desperate financial need.

    If you receive one of these letters, toss it in the trash. The odds that the letter is legitimate are slim. If you still think there’s an outside chance it might be real, check your family lineage first before making any payments.

    ***

    Our last scam is quite an insidious one. Scammers are sending fake checks to families in traditionally low-income areas. Victims are being told that they’re receiving a payment from UNICEF because of their income status.

    As with any fake check scam, the victims are being instructed to deposit the check and are being asked to send a portion of the payment to a third party. Some of the checks have been as much as $9600.

    If you’ve been reading our blog for a while, you’ll know that the banks will allow the victims to access that money as a courtesy before the bank discovers the check is fraudulent. Then the victim is responsible for paying the amount of the check back to the bank. Meanwhile, the scammers make off with the amount that the victim sent to the third party.

    If you receive a check in the mail you’re not expecting, dispose of it. Especially if you’re being asked to send a part of it somewhere else. That can only end up as a substantial financial loss.

     

  • Geebo 9:00 am on December 12, 2022 Permalink | Reply
    Tags: , , , , , , , US Attorney's Office, Zelle   

    Scam Round Up: Taylor Swift ticket scam and more 

    By Greg Collier

    This week in the Round Up, we’re going over some familiar scams with a slight twist to each of them.

    ***

    As we keep saying, the most common scam out there is probably the arrest warrant scam. Not a day goes by where we don’t see this scam in the headlines from somewhere in the country. Typically, scammers will pose as your local police department when they call a victim. The scammers will then demand money over an arrest warrant that doesn’t actually exist. More often than not, the scammers will tell the victim they’ve missed jury duty. In many jurisdictions, missing jury duty is no longer an arrestable offense, although you can be fined. However, you would receive a notice in the mail and not an officer calling you on the phone.

    Anyway, some scammers have turned up the pressure on their victims by claiming to be from a much higher law enforcement office than your local police department. Some scammers are claiming to be calling from the US Attorney’s Office, demanding their victims pay ‘legal fees’. The caller ID On these calls is spoofed to make it appear like the calls are coming from the US Attorney’s Office.

    Always keep in mind, no law enforcement office will ever call you demanding money. That goes for the smallest police departments in the most rural towns, up to and including the higher echelons of law enforcement like the FBI.

    ***

    There’s actually some good news on the puppy scam front. According to a recent report from the Better Business Bureau, puppy scams are actually on the decline. We’re specifically talking about the scam where victims pay for a puppy they find online, only to find out the puppy doesn’t exist. In many instances of this scam, once the scammer receives the initial payment, they’ll try to get more money from the victim by asking for more money for things like delivery insurance or special transport crates.

    And that’s where the bad news comes in. The reason puppy scams are on the decline is that scammers are taking more money from victims than before.

    If you’re in the market for a puppy, do not send any money to anyone without seeing the puppy in person first. Try to stick to local breeders or your local shelter.

    ***

    There’s no bigger star in today’s music industry than Taylor Swift. Tickets for her latest concert tour went on sale back in November, and quickly sold out. If you’re still looking to snag some tickets to this premium event, be careful where you try to get them from.

    A New Jersey woman thought she was buying tickets from another member of a Facebook group she belonged to. The woman sent $1500 through Zelle, for the tickets. She never received the tickets, and the scammer kept asking her for more money. If scammers can fool someone once, they’ll often try to get more money out of their victims.

    If you’re trying to buy tickets to any event that is in high demand, stick to reputable retailers. Also, never send money through Zelle to someone you don’t know personally.

     

  • Geebo 9:00 am on November 28, 2022 Permalink | Reply
    Tags: , Early Warning Systems, , , , Zelle   

    Why do Zelle scam victims only get repaid after talking to the media? 

    Why do Zelle scam victims only get repaid after talking to the media?

    By Greg Collier

    It’s been more than a year now since the Zelle scam started garnering headlines. In that time, it doesn’t seem like Zelle’s parent company has done much in the way of protecting its users. If you’ll recall, Zelle is owned by a company ironically called Early Warning Systems. In turn, EWS is owned by Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo. You’d think between these banking heavy hitters, they’d be able to come up with a way to discourage scammers, yet here we are.

    While there are many scams that have plagued Zelle in the past year or so, we’re referring to the one where scammers pose as your bank. In this scam, victims receive a text message that asks them if they’ve made a large purchase or transfer recently. The victim is asked to respond with either a yes or no. Once the victim responds, the text message is followed up with a phone call. Posing as the victim’s bank’s fraud department, the scammers will direct the victim to either move their money or ‘pay themselves’ through Zelle to protect their bank account. What’s really happening is the scammers are walking the victim through the process of sending money to the scammers through Zelle.

    The banks, such as the ones listed above, have not been consumer-friendly when it comes to helping customers who have been scammed. Typically, these banks throw up their hands and say there’s nothing they can do. Instead, they claim since the victim authorized the transfer, even under false pretenses, the bank is under no obligation to refund the victim’s money.

    However, as we have shown, some victims have gotten their money back, but only after going to their local media. That’s exactly what happened to a family from Northern California when they fell victim to the Zelle scam. They were saving money for their daughter, who is disabled and training to be a para-equestrian. Initially, US Bank said there was no fraud, and there was nothing they could do. Then, after sharing their story with a local news station, US Bank mysteriously issued a refund. This begs the question of why do banks seem to only offer refunds when bad PR is involved? Also, what is it going to take for them to put in more safeguards to help prevent these scams?

    Please keep in mind, Zelle is only supposed to be used between friends and family, people you know personally. Any business or stranger that asks you to pay through Zelle could be trying to scam you. Your bank is also never going to ask you to move your money using Zelle.

    If you find yourself becoming a victim to this scam, the first thing you should do is file a police report immediately. While it’s not a guarantee of a refund, it does go a long way in helping. And if you’re not receiving the fair treatment you think you deserve from your bank, don’t be afraid to contact the consumer advocate reporter in your local area.

     

  • Geebo 9:00 am on November 14, 2022 Permalink | Reply
    Tags: , , , , , , Zelle   

    Work from home scammers have thought of everything 

    By Greg Collier

    We never like to give scammers any credit, but sometimes they’re pretty clever and their scams ingenious. A profitable scam requires a massive investment of time and has to be planned out meticulously. Plans have to be made for almost any situation, in case something with the scam goes off-script somewhere along the way. That’s part of what makes scams so frustrating. Scammers could probably be successful in legitimate fields if they put their minds to it. Instead, we get stories like this where victims lose thousands of dollars.

    A woman from the Kansas City area recently graduated from college. Since she didn’t own a vehicle, she wanted to find a job where she could work from home. She accepted a job offer that she thought was a legitimate company. What was actually going in is that the scammers were posing as this company. She even did her due diligence by researching the company.

    The problems started, as most work from home scams do, when she received a check from her phony employer. They asked her to deposit the check into her bank account, then use Zelle to send money to an office supply company for her work equipment. Surprisingly, Zelle blocked the transaction.

    The scammers didn’t even hesitate. They then instructed her to go to a local Bitcoin ATM to send $4500 to the office supply company, which she did.

    As you might expect, the check turned out to be a fake, and now the woman is responsible for the $5000 check she deposited into her account.

    No matter how legitimate the company may seem, no real employer is going to ask you to deposit a check into your bank account and then have you use it for business expenses. Real companies just don’t work that way. They also won’t have you pay vendors using apps like Zelle, nor Bitcoin ATMs. Real employers have vendors that they’ll pay themselves to furnish any equipment that may be needed for a legitimate work from home job.

    Anyone who says otherwise is just trying to rip you off.

     

  • Geebo 9:00 am on November 9, 2022 Permalink | Reply
    Tags: , , , , , Zelle   

    Coffee table on Craigslist leads to con artist 

    Coffee table on Craigslist leads to con artist

    By Greg Collier

    One of the oldest scams when it comes to selling items online is the overpayment scam. Traditionally, a victim would advertise an item for sale on a platform like Craigslist. They would be approached by a prospective buyer who wanted to pay by check. When the seller received the check, it would be more than the amount they asked for. The buyer would say they made a mistake and would ask the seller to deposit the check and return the overage.

    This is also a version of the fake check scam. The check is always fake, and after the seller deposits it and sends money back to the buyer, the bank finds out the check is fraudulent. This leaves the seller on the hook to their bank for the full amount of the phony check.

    Since those times, many online sellers caught on to the fake check scam. That didn’t mean that the overpayment scam went away. It’s still around, but now has a more digital aspect to it.

    For example, a woman in Pennsylvania listed a coffee table for sale on Craigslist. The table was listed for $300. A man who claimed he wanted to buy the table sent a cashier’s check for $1550. She was told to deposit the check and keep $300 for herself and give the remaining $1250 to the movers when they come to pick it up.

    Just as an aside, there’s a similar scam where the ‘movers’ are in on the scam and just take the money. However, today’s scam does something different.

    After a few days, the buyer said that the movers couldn’t make it, and he changed his mind about buying the table. The buyer then asked for $1450 back from the seller, and wanted it sent to him through Zelle, which the seller did. The same day the seller sent the buyer the money, the seller’s bank discovered the check was a fake.

    For once, police were able to track down and arrest the scammer, although that’s the exception and not the rule. There was no report whether the seller got her money back or not. Since she used Zelle, there’s a good chance she didn’t, even with the scammer being arrested.

    If you sell items online, some of the old rules are still true. The first one is not to accept checks. Or, at least tell the buyer that there will be a delay in shipping until the check is verified as genuine. If you receive payment for more than the amount you’re asking for, it’s a scam. The buyer didn’t make a mistake, and there are no movers.

    While it may be convenient to accept payments through platforms like Zelle, Venmo and Cash App, they can also be manipulated.

    Your best bet is to only sell locally and only take cash.

    Lastly, we always recommend meeting the other person at a local police department. Many police departments now have areas designed for such exchanges. While it won’t guarantee you won’t be scammed, it goes a long way as a deterrent to scammers.

     

  • Geebo 8:00 am on October 18, 2022 Permalink | Reply
    Tags: , , , , , Zelle   

    This phone scam could steal your life 

    By Greg Collier

    How much of a panic would you be in if you lost your phone? Can your personal or business email accounts be accessed through your phone? Is your phone locked with a PIN or password? Or is it secured using a fingerprint or facial ID? Do you have banking apps that require a PIN or fingerprint to access? Could any random stranger just pick up your phone and start accessing your money and information? Even if your phone is completely locked down and secure from physical access by outsiders, there’s still a way you can lose all access to your phone without actually losing your phone.

    There is a scam out there that most mobile phones are vulnerable to, and it’s known as SIM-swapping. The name SIM-swapping is a misnomer, since physical access to your phone’s SIM card is not necessary. SIM-swapping works when scammers or identity thieves contact your mobile phone carrier and pose as you. The scammer will use information they’ve found out about you to convince the phone carrier they are you. This is known as social engineering.

    Once the scammer convinces the phone carrier that they’re you, they’ll have the phone company switch your service from your phone to theirs. As soon as that happens, the scammers have direct access to your phone number and text messages. Since most of us who use two-factor authentication have the authorization codes sent to our text messages, the scammers can then access any number of your personal accounts, including your financial accounts.

    This recently happened to a victim from Tennessee. She had received a text message from her carrier indicating a change on her account before her phone service went completely dead. She called her carrier, and another name had been added to the account. By the time she had her service restored, scammers had transferred thousands out of her bank account through the Zelle app.

    There are ways to protect yourself from SIM-swapping. One way is to use an authenticator app instead of using text messages for your two-factor authentication. Authenticator apps are tied to the device instead of being tied to a phone number. Also, when filling out your security questions for online accounts, don’t give the correct answers. Information like your high school mascot or your pet’s name can be discovered on your social media. Lastly, you can contact your carrier and tell them not to allow any device switching on your account. However, to get your account unfrozen, you may have to visit your carrier’s store with your ID.

     

  • Geebo 8:00 am on September 23, 2022 Permalink | Reply
    Tags: , , , , security code, Zelle   

    Man loses $7500 in new Zelle scam 

    Man loses $7500 in new Zelle scam

    By Greg Collier

    Next month, it will be a year since we started posting about Zelle scams. In that time, it doesn’t seem like much has been done on Zelle’s side to protect its users from scams. However, the scammers seem to have adapted the Zelle scam to continue stealing from their victims.

    For those who may be new readers, Zelle is a personal payment app that’s co-owned by some of the country’s biggest banks. It’s a competitor to apps like Venmo and Cash App. Zelle us only supposed to be used between family and friends and is not intended to be used for business purposes.

    In the previous version of the scam, scammers would send victims a text message posing as their bank’s fraud department. The text asks the victim if they recently made a large purchase and text back either yes or no. Once the victim texts back, that lets the scammers know that there is someone at that phone number.

    That text message is then followed up with a phone call to the victim. Still posing as the bank’s fraud department, the scammers tell the victim that their bank account has been compromised. The victim is then told that in order to protect the money in their account, the money needs to be ‘moved’. Instructions are given to the victim on how to move the money, but what’s really happening is the scammers are walking the victim through a procedure where their money is given to the scammers through Zelle.

    In the new Zelle scam, instead of walking the victim through instructions on transferring the money through Zelle, the scammers are now hijacking the victim’s Zelle account. The scammers do this by asking the victim for a security code that the scammers say they need for security purposes. What the scammers are actually doing is triggering a password rest on the victim’s Zelle account. The security code is needed to complete the password change. Giving the security code to scammers is essentially handing over your Zelle account to them.

    This recently happened to a man in Arizona who received an email about a fraudulent charge. When he called the number on the email to dispute the charge, he was told to pay himself the charge amount through Zelle to reverse the fraudulent charge. However, the ‘bank’ needed the security code to complete the transaction. This is being referred to as the ‘pay yourself scam’. After the scammers hijacked the man’s account, they took $7500 from him.

    Zelle has released a video on how to prevent yourself from becoming a victim of this scam, as you can see below. But are they really doing enough to educate bank customers on how Zelle can be used to scam them. Part of the problem is that many of the banks that use Zelle make Zelle part of their own app. Many customers aren’t even aware that they have Zelle or how to use it. In some cases, Zelle can be used to access a bank account, whether that customer wants it to happen or not. Zelle needs to better educate and protect their customers before their name becomes synonymous with scams, if it hasn’t already.

     

  • Geebo 8:00 am on September 15, 2022 Permalink | Reply
    Tags: , , , Zelle,   

    Million dollar home lists for $22K 

    Million dollar home lists for $22K

    By Greg Collier

    The online real estate market has been rife with scams and fraud almost since the beginning. It almost seems like you can’t post an online real estate listing without someone copying it. This is what usually leads to the numerous rental scams out there. However, it’s not just rental scams you have to worry about, but there are scams when trying to buy a home too. Except, the scam we’re about to discuss today had so many red flags it could have been part of the Soviet Navy.

    A local realtor in Atlanta found a peculiar listing on Zillow. The home was in an affluent Atlanta neighborhood and was estimated to be worth at least a million dollars. However, the Zillow listing claimed the house was for sale at the low, low price of $22,000. The supposed owner of the house claimed the price was so cheap because they owned a number of properties and this would be a tax write-off for them.

    If those weren’t enough warnings, this listing could be a scam, it also came with plenty of strings attached. The listing specified that this was for first time buyers only, who didn’t have any representation. The listing also stated that the price was non-negotiable and approved applicants would pay a $2,000 payment through Zelle.

    No matter how bad the real estate market may be, no one is going to sell a million dollar home for .02% of its value. The scammer was obviously looking for homebuyers with no experience in the market, so they easily could be taken advantage of. If a listing specifies that you should have no representation, you should assume it’s a scam.

    Lastly, the fact that the listing is asking for payment through Zelle should be a dead giveaway that it’s a scam. As we’ve said previously, Zelle should only be used to pay people you know personally and not to random strangers on the internet.

     

  • Geebo 8:00 am on August 24, 2022 Permalink | Reply
    Tags: , , , , , Zelle   

    Zelle says they’re just the messenger when it comes to scams 

    By Greg Collier

    As you may know, Zelle is the personal payment app that’s consistently been used in various scams for the past year. Zelle’s parent company is also co-owned by the nation’s leading banks, who consistently look for reasons to deny assistance to scam victims. Although it’s entirely within their right to do so, it’s also bad PR. At what point will the platform itself need to step in since its customers are constantly being taken advantage of?

    For example, a man from the Kansas City area recently fell victim to the classic Zelle scam. It’s a shame we can call it the classic Zelle scam, but here’s how it works. A victim will receive a text message that appears to come from their bank. The text asks if a large purchase or transaction has been made lately and asks the recipient to respond yes or no. Once the recipient of the text responds no, the scam really begins.

    The victim will then receive a phone call that spoofs their bank’s phone number. The scammer, posing as the bank’s fraud department, will tell the victim their bank account has been compromised. Under the guise of protecting the victim’s account, they’ll be walked through a Zelle transaction that’s actually sending the money to the scammer’s bank account.

    The Kansas City man lost $2500 to the scammers. He attempted to contact his bank, in this case U.S. Bank, to try to get his money back. So far, the bank has refused. Even after going to his local media, the bank has still refused a refund. When the local media contacted Zelle about it, they were told that Zelle is essentially a messaging service when it comes to these transactions and scam victims will have to work through their banks. U.S. Bank is one of the banks that co-owns Zelle’s parent company.

    Reactions like this should get bank customers to uninstall the Zelle app, but too many banks have Zelle baked in to their own app. This, in turn, makes a large number of bank customers vulnerable to scams just so the banks can push Zelle on them, since the banks are tired of losing business to other payment apps like Venmo and Cash App. Essentially, if you want to use your bank’s regular app, you’re forced to deal withe vulnerabilities of Zelle. It’s almost like the banks are holding their customers hostage.

    To better protect your bank account, keep in mind that Zelle is only supposed to be used between friends and family. Your bank will never ask you to use Zelle if your account has been compromised. If you receive one of these phone calls, hang up and contact your bank directly at the phone number on the back of your debit card.

     

← Older posts

Newer posts →

c
Compose new post
j
Next post/Next comment
k
Previous post/Previous comment
r
Reply
e
Edit
o
Show/Hide comments
t
Go to top
l
Go to login
h
Show/Hide help
shift + esc
Cancel