Zelle -- a free peer-to-peer payment system that's already integrated into more than 1,000 banking apps -- continues to be a major vector for scams, and the instantaneous nature of payments can make it hard for victims of fraud to get their money back. Because fraudulent payments are technically authorized by the victims, banks can contend that the transactions are legitimate and sometimes only refund money when stories become public in local news.
After continued criticism from Massachusetts Sen. Elizabeth Warren, it looks like the banking industry might finally be taking action to protect victims of Zelle fraud. The Wall Street Journal reported Monday that JPMorgan Chase, Wells Fargo and Bank of America -- three of the seven banks that own Zelle parent company Early Warning Services -- are in "advanced discussions to create a playbook for refunding customers and each other for illegitimate transfers."
Regardless of what system the banks develop for fraud reimbursement, you're much better off taking a few steps to protect yourself so that you never fall victim to a Zelle scam.
Read on to learn how the peer-to-peer payment system Zelle works, how thieves use it to scam consumers, how to protect yourself from Zelle scams and what to do if you fall prey to Zelle fraud.
Launched in June 2017, Zelle is a peer-to-peer, or P2P, payment service owned by Early Warning Services -- a consortium of major US banks. Zelle is available to more than ...
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