With Zelle Scams on the rise, what can you do to protect your money

Zelle scammers continue to bilk bank customers out of thousands, This attacks have been on the increases in recent time. Two Chicago-area women say they are down $3,500 each. For them, the scammer conned them over the phone and then using the Zelle mobile-payment system, withdraw money from their Bank of America accounts.

It has never been easier to send and transfer money directly from our mobile devices. Apps like Zelle, Venmo, and Cash App have revolutionized the way consumers move money, allowing transfers in seconds without having to write a check or handle cash.

Zelle is a peer-to-peer or P2P money transfer service that allows people to send and receive money to each other through connected bank accounts. Major US banks are part of the Zelle network, and once you sign up, you just need an email address or phone number to send and receive money electronically. Zelle was developed by the 30 largest banks in the US and has an application that users can download to their smartphones. The service is also integrated into the mobile banking applications of major participating banks, including Bank of America, Chase, Citi, and Wells Fargo. Consumers who already have their bank’s mobile app can start using Zelle right away. Bank of America CEO Brian Moynihan, for example, said at a recent conference that Zelle handled $ 44 billion in Bank of America customer transactions in 2018, reducing the number of paper checks, saving the company the money you normally spend to process those checks. In this way, saving on paper as a result of using Zelle is one of its most important benefits.

There is no fraud protection program. When using Zelle, the responsibility to protect your money rests with the person doing the transaction.
Zelle recommends that you think of Zelle’s service as cash. We should send money only to people we trust, making sure the recipient’s contact information is correct before sending money and beware of scams.
Using Zelle usually requires a smartphone. If your bank or credit union offers Zelle, then you should be able to use a desktop web browser to access your bank account and use the service. If your bank or credit union does not offer Zelle, then you will need to use the Zelle app, which requires a smartphone.
You cannot connect a credit card. It only allows you to connect debit cards, which can be a disadvantage. The ability to use a credit card can be expensive, but it can also be convenient if you don’t have enough liquid cash in your bank account.
Is Zelle safe and does it pose any risk compared to its benefits?
Compared to handling cash and mailing bills or checks, Zelle could be considered a safer option for moving money quickly. However, because money moves very fast if the person you are sending money to has a Zelle account, the transfer will complete in minutes and therefore cannot be canceled once it is sent. That means we have to check our transfers to make sure we don’t make a mistake and send the funds to the wrong person.

Similarly, Zelle does not have the security features that PayPal offers for example, including protection against being charged for something we did not buy or for not receiving an item that we paid for.

Only send Zelle transfers to people you know and trust. Zelle should be used to pay friends, family, co-workers, and the like; Zelle shouldn’t be used to pay strangers.

If the item you are about to buy online and pay with a Zelle transfer seems too good to be true, it probably is. Zelle does not offer buyer protection, so if you are scammed, you probably won’t get your money back. Use a service that offers buyer protection, such as PayPal, when shopping online from strangers. In general, if we need to transfer money quickly, Zelle is a good free option that works almost instantly. In this way, Zelle represents several benefits. Unlike other P2P transfer applications, Zelle does not charge fees and easily moves money between banks, making it one of the best options for immediate transfers.