Zelle Scams: How to Protect Your Customers and Brands

Impersonating a financial institution is one of the most common attack strategies used by fraudsters. They target customers with phishing messages that typically arrive via SMS. These messages often claim there is an error with the customer’s account or transaction. The scams usually include links and phone numbers and may lead to phone calls, allowing the fraudsters to continue their schemes.

Fraudsters often try to steal an individual’s login credentials. If they succeed, they can gain access to a Zelle account and transfer money to another account. Such account takeover attacks can lead to significant financial losses.

Payment or refund scams trick people into believing there is an error in their Zelle account. The scammers instruct victims to “send another payment to themselves” to fix the issue. They create a fake (spoofed) account that mimics the victim’s original account. Once the victim completes the transaction, they unknowingly send their money directly to the fraudster.

Facebook Marketplace is an online platform where people can buy and sell personal items.

Unfortunately, it can also be a target for Zelle fraud, affecting both buyers and sellers. In one common scam, buyers claim they can’t meet in person and use Zelle to make a payment for an item. After sending the payment, they provide a fake confirmation of the transaction.

On the flip side, sellers might post fake products for sale and ask for payment through Zelle before meeting or shipping the item. Once they receive the payment, they often remove the listing and cut off communication with the buyer.

Prize scams are prevalent on the internet. In these schemes, people are falsely told that they have won a lottery or a valuable prize. To claim their winnings, they are instructed to send a Zelle payment to cover various fees.

Fraudsters often target individuals on dating sites and social media. They first establish a relationship by communicating and building rapport. Once this connection is made, the fraudster typically invents a crisis that requires urgent financial assistance and requests a Zelle payment for the transfer.

Fraudsters often contact their targets with “too-good-to-be-true” investment opportunities that require immediate action to lock in their position. They usually suggest making payments conveniently through the Zelle app.

Scams like these usually happen in two main ways. First, a fraudster tricks the target into applying for a fake job opportunity. Second, the fraudster impersonates a company that the target has previously engaged with. In both cases, the target is often asked to pay for training materials or other fees during the interview process.

Charity scams prey on people’s empathy, especially after disasters or crises. Fraudsters send phishing messages that promote fake charitable organizations, claiming to raise money for victims. They often use emotional stories and false narratives to persuade their targets to send money, typically through Zelle.

Fraudsters sometimes impersonate trusted friends or family members to request Zelle payments. This is a type of imposter scam, similar to brand impersonation attacks.