Zelle®, and other popular digital payment apps, make sending or receiving money convenient. But this convenience comes with a price. Scammers are using those apps to cheat you out of your money. Thieves use spoofed calls, phone calls that look like they’re coming from an individual’s bank, and use traditional hacking to access people's accounts.
Follow these 5 tips to help protect yourself from Peer to Peer (P2P) scams:
1. Think of Zelle or any P2P payment as cash.
You wouldn’t send cash to someone you don’t know, right? While Zelle is a digital payment, it works like cash. Transactions are not reversible. If you make a mistake or a typo and send money to the wrong person or phone number, banks will not refund your money.
2. Never send money to yourself.
Scammers will text or call Zelle customers, impersonating their bank through a variety of methods, including spoofing phone numbers, claiming that your account has been compromised or a payment did not go through. Once the scammers get the customers on the phone, they use personal information and will ask to reverse a transaction. While your account is in your name, it is controlled by the scammers and any money sent to this account will go straight into their pockets.
3. Only use Zelle to send money to those you know and trust.
Do not use P2P payments for online purchases or to send money to anyone you don’t have a personal relationship with. Make sure you have your recipient’s name, number, or email correct. The best strategy is to only send money to trusted friends or family.
4. Use a strong, unique banking password and 2-factor authentication.
When available through your bank’s appor if using a payment app, use 2-factor authentication. It can take more time, but it provides an extra level of protection.
5. Contact your financial institution for possible recourse.
If you feel you’ve been the victim of fraud or have been scammed, contact your bank or credit union immediately. In cases of unauthorized payments, consumers have legal rights and protections under the Electronic Funds Transfer Act. It’s important to read the user service agreement and the account agreement with your financial institution to understand the terms of any payment service you intend to use.
The bottom line: Pay it safe. If a deal for a puppy or kitten, or an incredibly low price on an item is too good to be true, it probably is. While these payment services are convenient and fast, using a credit cardor other payment methods typically offer you more protection.
FAQs
The best way to avoid being scammed is to make sure you only make payments to people who you know and trust. If you have been scammed through Zelle, contact your financial institution and report the transaction as soon as possible.
How to avoid scams on P2P? ›
Here are some tips to protect yourself from P2P scams:
- Verify that the app is legitimate. ...
- Be careful with permissions. ...
- Look out for fake push notifications, emails and text messages that supposedly are from a provider of financial services. ...
- Beef up device security. ...
- Use multifactor authentication.
Keep your account usernames and passwords, Social Security number, and bank account, debit, and credit card information to yourself. If you're pressured or have any concerns, hang up and contact your bank directly using the number on the back of your card or on your bank statement.
How to use Zelle without being scammed? ›
To safeguard your money from Zelle scammers, avoid commercial payments, and never send funds to unknown recipients. And to keep your bank account and identity safe, sign up for Aura.
How do I stop Zelle scams? ›
Report a Fraud or Scam. If you have been a victim of fraud or scam you may use the form below or call us at 1-844-428-8542 to report your experience. It is important that if you are enrolled in Zelle® through your bank or credit union to report the transaction directly to your bank or credit union.
Is there any protection with Zelle? ›
Zelle® does not offer purchase protection, so pay it safe. Only send money to people you personally know and trust. 4. Confirm your recipient's contact information: Make sure you have the correct U.S. mobile phone number or email address for the person you want to send money to.
How to make P2P secure? ›
To help keep hackers out of your P2P account, be sure to: Create a complex password when setting up your account. Add a second step (two-factor authentication) before money can be sent. Use a secure network (not free Wi-Fi) when using your P2P payment app.
What are the risks of P2P payments? ›
First and foremost, because they're as fast and convenient for criminals, as they are for consumers, P2P apps—like Zelle, Venmo and Cash App—are favorite tools for modern-day scammers. It's also important to know that, even though they may be associated with your bank account, no fraud protections exist on P2P apps.
How do you secure P2P lending? ›
The primary risk of P2P lending is that your investments and data may need to be more secure. To ensure your security, you should consider the security measures taken by the P2P platform you are using, such as encryption of data, authentication measures, and any other security protocols in place.
How can we prevent P2P? ›
Disabling P2P Programs
- Turn off all file-sharing programs and all of their components.
- Go to your computer's Control Panel. ...
- Double click on the Programs icon.
- Locate the P2P software you are removing on the list of installed programs. ...
- Follow the prompts on the screen to completely remove the software and its components.
Tips on How to Stay Safe in Peer-to-Peer Trading
- Choose reliable exchanges and gateways that support P2P trading.
- Check the reputation of the P2P merchant and the buyer before starting the transaction.
- Enable additional security features and protect yourself better.
- Don't trust everyone.
Use Common Sense
Make sure your P2P apps have passwords or other protections, like Face ID, so someone can't pick up or “borrow” your phone and use the app to siphon money from your account. Yes, it happens. It's best to keep your running balance fairly low.
Can Zelle refund money if scammed? ›
Your funds will be returned to your account based on your bank's policies(+1-877-200-4256). Zelle customers can report unauthorized transactions through the same number: +1-877-200-4256. In cases of scams or unauthorized transactions, Zelle will process refunds according to your bank's guidelines(+1-877-200-4256).
Can someone reverse a Zelle payment? ›
No, Zelle® payments cannot be reversed. With Zelle® money moves into an enrolled recipient's account within minutes and cannot be reversed.
What happens if someone accidentally sends you money on Zelle? ›
Zelle told News4 that if you get money sent to your account by mistake, don't send it back to the sender unless you know them. Instead, they say to contact your bank, which may be able to help you return the payment. Venmo said to contact their support team, which can help reverse the payment.
Can a scammer access my bank account through Zelle? ›
While Zelle is a legitimate and secure service, Zelle scams can risk account takeovers, identity theft, and more. Look to LifeLock Ultimate Plus to help protect your identity from scammers. Zelle can make money transfers quick and simple.
Can I get my money back from Zelle if I get scammed? ›
How to Get Your Money Back. Zelle is processing each scam claim they receive on a case-by-case basis. If you haven't already done so, file a claim directly with Zelle through their app or by phone (844-428-8542). You'll also need to file a claim with the bank or credit union your funds were taken.
How do I lock my Zelle account? ›
Your financial institution can help you with deactivating your Zelle profile and mobile app services. If you are enrolled with the Zelle app, please call us immediately at 1-844-428-8542 so we can deactivate your profile enrolled with the lost or stolen Smartphone.
