Wells Fargo quietly replaces money customers lost in huge Zelle scam.
A new Zelle scam has gained momentum in 2022, stealing thousands of dollars from unsuspecting bank customers. Scammers are using Zelle, the peer-to-peer payment system offered to consumers through their financial institution. Zelle works like Venmo and other payment systems, allowing users to send money from their bank accounts to friends and family.
Unfortunately, security experts say criminals are using Zelle to drain victims’ bank accounts. Like many scams, this one is based on the claim that the scammer is trying to protect the victim from fraud. The target receives a text that appears to be from their bank asking if they attempted a Zelle transaction. Regardless of how they answer, the target next receives a phone call from the scammer, who spoofs the number, so it shows up as coming from the target’s bank.
The victim will then receive a set of instructions that ultimately winds up compromising their bank account information. The scammers use the information to withdraw funds and make off with their victims’ money. Zelle draws sharp distinctions between fraudulent activity and scams. If the victim did not authorize a transaction, then the theft is fraud, and the victim can usually be reimbursed. It’s a different story if the victim acts on instructions from a scammer.
Zelle users should be aware that they could become targets as the scam continues to spread. Those who respond to a fraud text and then get a phone call, allegedly from their bank, should hang up immediately. They should then call their bank’s customer service line directly and ask if the fraud alert is real.
The Zelle Scam soars so does debate over who’s to blame.
Nearly $500 billion traded hands last year on Zelle, a mobile payment application.