Warning: Scam Artists Using Zelle
Have scam artists fooled you or someone you know by using Zelle or another cash transfer app?
According to an Associated Press article by Ken Sweet on OCRegister.com, a report issued in the U.S. Senate by the office of Senator Elizabeth Warren has revealed that more and more scam artists are fooling people out of their cash on the Zelle app.
Per the AP article, Zelle is the banking industry’s answer to very popular “peer-to-peer payment services like PayPal, Venmo, and the Cash App.” Zelle was launched in 2017, and last year, over $500 billion dollars in funds were transferred on that app. “More than 1,700 banks and credit unions offer the service,” according to Sweet’s website post.
Not only has Zelle become popular with banking customers, but the report finds that data collected from four major banking institutions shows that close to 200,000 cases of fraud were reported by customers who were scammed out of funds during 2021 and the first half of 2022. The report also cites the fact that less than 50 percent of the stolen funds were being reimbursed to those customers reporting the scams.
According to Ken Sweet’s article on AP, banks are required to refund money to customers when funds have been illegally taken from their accounts without authorization. However, the major banks have argued that they do refund money, but with so many more customers claiming to have been scammed, it is getting more difficult to determine if customers are telling the truth, or if they are actually trying to scam the bank.
Be wary about using money transfer apps in the future, and double-check to make sure you know the person you are sending money to, and that their phone number and/or email address is one you can confirm is legitimate.
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Larry Martino is the long-time Afternoon Drive personality on 96.3 KKLZ. The views and opinions expressed in this blog are those of Larry Martino and not necessarily those of Beasley Media Group, LLC.