13 Top Zelle Scams Operating in 2024

Key Takeaways

• In 2024, Zelle has seen impressive growth, with millions of users completing billions of dollars in transactions, highlighting its increasing convenience and adoption.
• As Zelle becomes more common, scammers find new ways to exploit its users, taking advantage of its quick and easy transaction process.
• Common Zelle scams include account takeovers, refund scams, and fake payment confirmations, where victims are tricked into sharing credentials or sending money.
• To avoid scams, use two-factor authentication, verify payment details, avoid sending money to strangers, and always use official Zelle or bank channels.

The rise of peer-to-peer (P2P) payment platforms, such as Zelle, has made sending and receiving money more convenient.

In 2024 Zelle continues to grow, with a notable increase in user activity. According to a Bank of America report, Zelle boasts 21.5 million active users, up 18% from the previous year. Users sent and received 342 million transactions worth $101 billion, showing significant year-over-year growth of 26% and 25%, respectively.

However, the convenience that makes Zelle appealing also opens doors for scammers. As P2P payment apps become more integrated into daily transactions, scammers have adapted to modern techniques, targeting unsuspecting users through sophisticated methods such as social engineering.

This article will explore common Zelle scams and provide practical advice.

1. Account Takeover Fraud

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Account takeover fraud occurs when scammers gain access to your Zelle account and use it to steal your money. It often happens through phishing emails or texts designed to capture login credentials.

• Scammers send a fake email or message that appears to be from Zelle or your bank.
• Victims click on a malicious link and enter their login details on a fake website.
• Once scammers have the credentials, they access the Zelle account and transfer money to themselves.

How To Avoid It:

• Enable two-factor authentication (2FA) on your account.
• Avoid clicking on suspicious links or emails asking for your login details.
• Monitor your account regularly for unauthorized transactions.

2. Refund and Recovery Scams

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In the refund and recovery scam, fraudsters pretend to help victims recover lost money. Victims often have already fallen for fraud and seek help retrieving their funds.

• Scammers contact victims, claiming they can help recover money lost in a previous scam.
• They ask for upfront payments to cover legal fees or transaction costs.
• Victims pay the fees but never recover their lost money.

How To Avoid It:

• Be cautious of anyone offering to help you recover funds, especially if they request payment upfront.
• Verify any claims through official bank channels.
• Avoid paying fees to unknown third parties.

3. Smishing Scams

Smishing is a form of phishing that occurs via SMS. Scammers pretend to be from a bank or Zelle and urge you to take action on your account.

Here’s how it works:

• You’ll receive a text message claiming a person has compromised your Zelle account.
• The message contains a link to “verify” or “secure” their account.
• By clicking the link, you inadvertently provide their login details to scammers.

How To Avoid It:

• Never click on links in unsolicited text messages.
• Contact your bank directly to confirm any account issues.
• Always use official Zelle apps or websites to manage your account.

4. Facebook Marketplace Scams

Facebook Marketplace has become a popular platform for buying and selling goods, but scammers have taken advantage of this. In these scams, fraudsters provide fake payment confirmations through Zelle to trick merchants.

• You’ll receive a payment confirmation email that looks legitimate but is fake.
• You’ll then ship the item, believing the payment is legitimate.
• The buyer never actually sends money, leaving you empty-handed.

How To Avoid It:

• Confirm payments directly through the Zelle app, not through emails.
• Avoid shipping goods until you have received payment.
• Use trusted platforms with buyer and seller protections to protect yourself from Facebook scams.

5. Customer Service Scams

Customer service scams target individuals looking for help with their Zelle account. Scammers will pretend to be from Zelle’s support team, offering assistance while attempting to steal your money.

• Scammers create fake phone numbers and spread them on the internet. You’ll find phony customer support contacts while searching for Zelle customer service numbers online.
• Scammers ask for login information or request access to accounts.
• They then transfer funds out of the victim’s account.
• Fraudsters may also use phishing scams, such as emails or texts, claiming to be Zelle customer service agents. They’ll ask you to contact them through the phone numbers or email addresses they provide.

How To Avoid It:

• Use only official contact information provided by your bank or Zelle.
• Never share your account credentials with anyone, including supposed customer service representatives.
• Be wary of customer service numbers found via search engines.

6. Lottery and Prize Scams

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Scammers use the promise of a lottery or prize to lure victims into sending them money. These scams often ask for fees or deposits via Zelle before releasing the supposed winnings.

• Victims receive a message stating they’ve won a lottery or prize.
• The scammer requests a fee to cover taxes or shipping.
• After paying, the victim receives nothing in return.

How To Avoid It:

• Be suspicious of any message claiming you’ve won a lottery or prize, especially if you haven’t entered one.
• Never send money to claim a prize.
• Verify the legitimacy of any prize claims through official channels.

7. Romance Scams

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In romance scams, fraudsters try to build an emotional connection with you through online dating platforms. Once they establish trust, they’ll request money via Zelle, often for fabricated emergencies.

• The scammer creates a fake online profile and begins a romantic relationship with the victim.
• After gaining the victim’s trust, the scammer asks for money, claiming to have a personal emergency.
• Victims send money via Zelle, believing they are helping a loved one.

How To Avoid It:

• Be cautious of people you meet online who ask for money.
• Verify the identity of anyone you plan to send money to.
• Avoid sending money to individuals you’ve never met in person.

8. Investment Scams

The old adage goes, “When the deal is too good, think twice.”

Investment scams lure victims with promises of high returns on investments. Scammers request payments via Zelle to “secure” the investment.

• Victims receive promises of large profits from a seemingly legitimate investment.
• The scammer asks for money upfront, often via Zelle, to initiate the investment.
• Once the victim sends money, the scammer disappears, and the investment never materializes.

How To Avoid It:

• Be skeptical of investment opportunities that promise guaranteed returns.
• Avoid sending money upfront for investments without verifying the legitimacy.
• Consult with a financial advisor before making any investments.

9. Rental Scams

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In rental scams, fraudsters pose as landlords and ask for deposits on rental properties they don’t own. Victims often find these fake listings on websites or social media. They may also use phishing texts to announce a change of payment methods to a P2P app like Zelle.

• Scammers will post a fake rental listing online and request a deposit via Zelle to secure the property.
• The victim pays the deposit, believing they’ve secured a rental.
• Once they receive the payment, the scammer stops communicating, leaving the victim without a place to stay.

How To Avoid It:

• Always visit the property in person before sending money.
• Use legitimate rental services and avoid sending deposits via P2P payment apps.
• Research the property and landlord before committing.

10. Employment Scams

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Here, you’ll receive a fake job offer with the condition that you pay upfront for training or equipment fees.

• You’ll apply for the job application after receiving the offer.
• The scammer asks for money to cover initial expenses like training or equipment.
• After you pay, the job offer vanishes, and the scammer becomes mute.

How To Avoid It:

• Be wary of any job that requires payment before starting.
• Verify the legitimacy of job offers by contacting the company directly.
• Research the employer and read reviews before sending any money.

11. Charity Scams

Human beings can feel compassion and empathy, often contributing to charities as a result. Scammers exploit people’s generosity by posing as charitable organizations and requesting donations via Zelle.

• Scammers create fake charity websites or send emails soliciting donations.
• Victims send money via Zelle, thinking they contribute to a legitimate cause.
• The scammer keeps the money.

How To Avoid It:

• Research charities before donating to verify their legitimacy.
• Use trusted platforms like Charity Navigator to ensure the organization is reputable.
• Avoid sending donations via P2P payment platforms like Zelle.

12. Concert and Event Ticket Scams

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Scammers are targeting concert and event-goers with a clever trick. They offer tickets at bargain prices and ask for payment through Zelle. But here’s the catch: once you pay, the tickets vanish.

Here’s how they do it:

• A scammer posts fake event tickets for sale online.
• The deal interests you, and you pay via Zelle, expecting to receive the tickets.
• You don’t receive the tickets; if you do, the tickets are invalid.

How To Avoid It:

• Purchase event tickets only through authorized sellers.
• Verify the seller’s legitimacy before sending payment.
• Avoid paying for tickets via P2P apps like Zelle.

13. Family and Friends Impersonation Scams

In this scam, fraudsters impersonate family members or friends, asking for emergency funds via Zelle.

• Scammers hack into a loved one’s email or social media account.
• They send messages to the victim, pretending to be family members or friends who need money for an emergency.
• The victim, believing the request is genuine, sends money via Zelle.

How To Avoid It:

• Verify any request for money by contacting the person directly through another channel.
• Be cautious of urgent requests for money, especially from people you haven’t spoken to recently.
• Only send money after confirming the authenticity of the request.

Why Are P2P Payment Scams So Common?

The ease of transferring money with minimal checks or verification in P2P payments creates an environment ripe for fraud. Additionally, many users are unaware of the potential risks, believing that the convenience of P2P payments outweighs the need for caution. Scammers take advantage of this false sense of security, using a variety of tactics to trick victims into handing over their money.

Protect Yourself Against Zelle Fraud in 8 Steps

To protect yourself from falling victim to Zelle scams, follow these common-sense guidelines:

1. Use Two-Factor Authentication (2FA): Enabling 2FA will ensure your account has an added layer of security.
2. Question Upfront Payment Requests: Be cautious of anyone asking for money before delivering goods or services.
3. Don’t Use Zelle to Pay for Goods: Zelle is best used to send money to people you know and trust, not purchase items.
4. Beware of Urgency: Scammers often pressure victims by creating a false sense of urgency. Verify the request before sending money.
5. Call Your Bank Directly: If you receive a suspicious message regarding your account, contact your bank using official channels to verify the information.
6. Never Share Your Login Credentials: Keep your account information private, and never share your Zelle login details with anyone.
7. Verify Payment Requests: Double-check the recipient’s information to ensure it is correct before sending money.
8. Monitor Your Account Regularly: Check your account regularly for unauthorized transactions and report suspicious activity immediately.

FAQs About Zelle Scams

Is Zelle Safe To Receive Money From Strangers? 

It is not recommended to use Zelle to receive money from strangers. Use Zelle to transact between friends and family, not random people. Accepting payments from strangers online can lead to scams and fraud. Protect yourself by only using Zelle for transactions with people you know and trust.

How can you get your money back if you send a P2P payment to the wrong person?

Unfortunately, Zelle payments are often irreversible. If you accidentally send money to the wrong person, your best option is to contact your bank immediately and ask them to assist you. However, you may never recover your funds. Always double-check payment details before sending money.