In 2021 alone, users lost approximately $440 million on peer-to-peer payment systems like Zelle scams because they made it easy for scammers to take advantage of the system and misappropriate their money. Online payment apps like Zelle simplify money transfers and make it easy for scammers to take advantage of you.
The worst thing is that Zelle warns that they cannot help you get your money back. You may report a fraud incident to your bank or credit union. It is, however, required by federal law only to reimburse you for unauthorized transactions. If you hit the “send” button on a Zelle payment, banks will consider it an authorized transaction, regardless of whether or not you were scammed into sending the payment.
Even in cases deemed unauthorized, only around 10% of victims have their money returned to them.
For this reason, Zelle and the banks it partners with have come under fire several times over the past few years. Legislators are putting pressure on banks to do a better job of protecting consumers using Zelle.
As of now, it is up to you to make sure that you are protected.
Scams associated with Zelle

The following are some of the most common debt consolidation scams targeted at Zelle users.
The Spoofing Scam
Your bank says your Zelle account is humming, for example, or you get a text, call, or email that sounds like it’s from someone you know. To stop it, they ask you for your login information; you click a link to verify your account, reset your password, or ask for personal information.
In this scam, scammers use spoofing techniques to make themselves seem like someone else. They tweak their phone number and caller ID or trick you with a misleading email address.
Me-to-Me scam
These scams are also called “Pay yourself” scams and are a spinoff of the spoofing scam. You get a call or text from someone claiming to be your bank. They tell you that someone has attempted to make a fraudulent payment with your Zelle account, and you can stop it by transferring funds from your Zelle account back to your bank account.
Generally, the account they tell you to send payment to isn’t your bank account; it’s theirs. Due to your desire to stop the scam, you end up becoming a victim of a scam yourself.
For example, a woman from San Jose, California, fell victim to this scam when she was working when someone claiming to be her bank called her. Amid her frantic and overwhelmed state, the caller scammed her of $3,499 — then laughed at her when she realized what had happened while still on the phone – with the caller ID posing as Wells Fargo. The Zelle payment appeared to go into an account under her name.
Fraudulent impersonations
You receive a message from someone you know who tells you they are in a bad situation and need money as soon as possible. For instance, their car broke down, they are stranded, or they have been arrested and need bail money to get out of jail.
In other cases, if you receive a message from a company or institution that you recognize, such as your utility company asking for an overdue payment or the IRS telling you that you owe outstanding taxes, you opt to pay them quickly to avoid late fees and other penalties.
It is evident in both cases that the sender is not who they claim to be. In this scam, they play on your emotions and convince you to send money without taking the time to evaluate the request.
Scams on Facebook Marketplace & Craigslist
When you are browsing Facebook Marketplace or Craigslist, you see a post for a great deal, such as deeply discounted concert tickets or a super-cheap game console, that you must take advantage of right away. Your goal is to snag this deal before anyone else gets to it, so you don’t hesitate to pay via Zelle when the seller asks for payment.
Due to the instantaneous nature of Zelle payments and the lack of consumer protection, this can be a very easy way for scammers to take their hard-earned money and run.
A couple in Orange, CA escaped this scam by first visiting the home in question and learning from the occupants that it was not for sale. Others were not so fortunate and sent payment without questioning the deal’s validity.
Fraudulent romance scams
If you’ve ever watched “Catfish,” then you know how this scam works. You meet someone online, either on a dating app or on a social media platform. They quickly draw you into a whirlwind romance, but they’re never able to meet in person for some reason. Once you’re head over heels for them, they ask you for money in case of a medical emergency or to cover some other need you may have.
As another example of a scam on an online platform, rental fraud occurs when you see an ad for a house for rent, and when you respond, the poster says they are out-of-state landlords and that you can pay the security deposit via Zelle. However, the home isn’t for rent; the walk-through videos and photos you saw are likely taken from the listing for the last time the house was for sale.
They may or may not be who they say they are, but you won’t know for sure until you meet them in person. All they want is your money.
There is an additional type of romance scam where you meet someone on a dating app which claims they need money to get to the date you’ve planned. They might say they cannot afford gas or need to hire a babysitter for their child. You send the money. They don’t show up.
Protecting Yourself From Zelle Scams
Follow these precautions to prevent yourself from becoming a victim of a Zelle scam.
Don’t ignore red flags
The following are some of the telltale signs of a Zelle scam:
- Unsolicited emails
- Too good to be true
- Emotional tugging
- There’s a rush to act
- Sellers who only accept Zelle
- Email addresses that seem weird ([email protected] or [email protected])
- URLs that don’t make sense (like www.bankofamerica.com.my/verify)
Whenever you see any of these signs, you should keep your distance from them.
Never send money to strangers
You should only use Zelle to send money to friends, family, and other trusted people. You should never use it to buy anything from a stranger. There can never be a guarantee that the person you’re sending money to will give you what you paid for.
The best option for sending money digitally for a good or service is using another payment system like Venmo or PayPal, which offer purchase protection.
Know Who You’re Talking To
Whenever you receive a request from a company you recognize, you should double-check that it is them. You should contact the company through the official contact information on the company’s website to confirm if the request is legitimate.
If you get an unexpected request for money from a person you know, do not assume it is them. You should ask yourself: Are they contacting you by a method you do not usually use, such as a social media message when they usually text you? Are they using a different email address, phone number, or username than you typically use? Is the writing in their voice?
Even though these things appear to be going well, it doesn’t hurt to contact the person by using one of the usual methods you use to inquire if the request was sent to you. You can never be too careful here.
Don’t respond to unsolicited emails
The chances are that if a message or call appears out of the blue, it is likely a scam.
If you receive a text message or phone call asking for a Zelle payment or your Zelle information, do not provide that information. If the sender claims they are a legitimate company, such as your bank, contact them directly through the “contact us” page on the company’s website.
By using call-blocking tools, you can also reduce the number of spam calls you receive on your phone.
Do Not Click on Email Links
You should never click on a link in an email or text message sent by an unknown sender.
In emails from senders, you know and trust, double-check the links to ensure they’re not spoofs. If you right-click or hover your mouse over a link, you should be able to see the URL to which the link will take you.
You have to avoid clicking on any link that appears suspicious. For instance, there may be a legitimate-looking URL in the email, like www.wellsfargo.com, but when you hover over it, you see that the URL it links to is www.wellfargo-verification12345.com.
You can also avoid unsafe sites with antivirus software.
Authenticate with two factors
When you log into an online account, two-factor authentication requires you to provide additional information to log in. For instance, if you are using a mobile app, you may be required to enter your username and password. Your bank will send you a temporary code (by text, phone, or email), which you must enter to verify your identity and complete the login process.
Your account is more secure with two-factor authentication. If someone gets your login info, they can’t do anything with it.
Your login information should never be shared with anyone
There is no legitimate reason why someone would require your login information. Please don’t give it out, period. And don’t give away your two-factor authentication information to anyone, ever.
In conclusion
It’s likely that if you find yourself a victim of a Zelle scam, your money is gone for good. However, contacting your bank and informing them of the fraud is still possible, and you can see if they will reimburse you. If not, you can file a complaint with the Consumer Financial Protection Bureau.
In addition, you should report this scam to prevent other Zelle users from falling victim to it as well:
- Zelle: Call 844-428-8542 or visit https://www.zellepay.com/support/report-scam
- FBI Internet Crime Complaint Center: Visit https://www.ic3.gov/
- Federal Trade Commission: Visit https://reportfraud.ftc.gov/#/
Remember that Zelle transfers are instantaneous. The money leaves your account when you press the “Send” button. The chance of getting it back is slim, so send it cautiously. The money is transferred directly and does not go through any third parties. Therefore, the funds are sent and received almost immediately, with no time for refunds or reversals.