Why You Shouldn’t Pay for Anything With Zelle

We tend to think that scams happen to other people, and that we’re too smart, informed, or cautious to fall for them. But we all have vulnerable moments when we can slip — it just takes the right message, item, or time. Lately, that’s been happening a lot on Zelle.

How the Zelle scam works

A common tactic is sending you a text in the format most banks use:

FreeMsg: CAPITAL ONE BANK Fraud Protection Team: Did you attempt a Zelle Transfer for $US500.00 ($694) on 10-07-2022? Reply YES or NO. To Opt Out Fraud Alert Text reply STOP

If you had just sent money that day, that message can sound legitimate. And if you interact with the message (which is also a trap, by the way), they’ll contact you to verify your personal information. This is the part that’s tricking many people: If you confirm your username or password with them, they have what they need to drain your account.

Another trendy scam is selling an item on an online marketplace like OfferUp, Craigslist, or Facebook Marketplace, but the seller only accepts payment on Zelle. Since Zelle is meant to send money quickly to family and friends — that is, personal transfers instead of sales transactions — there’s no protection that you might expect from credit cards or sites like PayPal. You can’t call Zelle or your bank and explain that you want your money back.

What to do if you get a call or text from “your bank”

If you get a text/call from “your bank”:

• Be sceptical. Know that your bank will never call you to ask you for your personal information. They already have it.
• Whatever they want, hang up or ignore the text and call the official number. Check with the bank that what you’re being told is indeed true.

And if you want to buy from an online market:

• If the seller only accepts Zelle, there is a 99.99% chance that it’s a scam. Let it go.
• Ask to use other services like PayPal “goods and services,” where both your money and the seller’s item is protected by PayPal’s third-party money transfer service. There’s a small fee to pay, but it’s worth it.