Understanding Zelle Frauds and Scams: How to Protect Yourself

Zelle has been making headlines due to an increase in scams in which criminals trick people into sending them money. There has been so much discussion because, unlike other fraudulent transactions, financial institutions are generally not liable for money lost in person-to-person (P2P) scams. When sending funds through these apps, an individual must confirm and accept where the money is being sent and where it's coming from. That's why it is so important to only pay individuals and businesses you know and trust.

Before sending money, take a few minutes to think about the legitimacy of the requests. For example, a scammer will act as a "financial institution" and reach out about an "alert," if you respond to the message or engage with the scammer, the scammer may call you on a spoofed phone number which matches that of your financial institution. They may claim you need to send money to yourself when in reality, it's a trick to get you to send money to your account. They do so by using the verification code that Zelle sends when opening an account or adding a new bank account. These verification codes should never be shared. If the scammer is given this code, you are granting them access to your Zelle account, allowing them to connect it to their bank account or take over your account. Remember, a financial institution will never insist that you pay yourself. This is just one example of a common Zelle Scam; read below about the others that have been circulating:

Common Zelle Scams

1. Phishing Scams: Scammers send fake emails or texts that appear to be from Zelle or your financial institution, asking for your login details to steal them. It's important to remember that your financial institution would never suggest sending funds to yourself through the app

1. Impersonation Scams: Someone pretends to be a friend, family member, or a known company, asking for money under false pretenses, often claiming an emergency.

1. Fake Purchases: Scammers offer goods or services online, request payment through Zelle, and then fail to deliver the promised items.

1. Overpayment Scams: A scammer sends you too much money "by mistake" and asks for a refund, hoping you'll send money back before realizing their payment was fake or reversed. They may even go as far as creating fake screenshots.

Tips to Protect Your Money

1. Know Your Recipient: Only send money to people you know and trust. Verify their contact information before sending any payment.

1. Confirm Requests: If you receive an unexpected request for money, verify it by contacting the person or company directly using a known phone number or email, not the contact details provided in the request.

1. Beware of Urgency: Scammers often create a sense of urgency to rush your decision. Take your time to verify any requests.

1. Guard Your Information: Never share your Zelle login, password, or verification codes with anyone. Zelle and Jovia will never ask for this information.

1. Regularly Monitor Accounts: Check your bank statements and Zelle activity regularly for any unauthorized transactions and report any suspicious activity to your financial institution immediately.

1. Use Official Financial Institution Channels: To avoid phishing sites, access Zelle through your financial institution’s official app or website. Bookmark the official site to ensure you're logging into the correct place.

1. Enable Security Features: Use multi-factor authentication (MFA) if available. This adds an extra layer of security by requiring more than just your password to log in.

Steps to Take if You Experience a Scam

If you suspect you've been scammed, act quickly:

• Report the scam to your financial institution immediately. They might be able to stop the transaction or assist in recovering your money.

• Change your Zelle, email, and bank account passwords to prevent further unauthorized access.

• Monitor your financial institution and Zelle accounts for any additional suspicious activity.

Zelle is a convenient tool for sending money, but being aware of potential scams is essential. These tips can help protect you from fraud and use Zelle safely. Always stay cautious and take your time when handling financial transactions.

Remember, Jovia will never contact you directly to request sensitive information. Learn more about what Zelle is and how to protect yourself from common payment app scams.