Zelle is a digital payments network that allows users to send, receive, and request money to or from people they know and trust within minutes.Due to the nature of Zelle's near real-time payment service, people can often be targeted by fraudsters in an attempt to trick them into sending them money.You can learn how to avoid being cheated out of money while using Zelle.
Step 1: You can use Zelle to pay people that you know and trust.
Zelle offers a very convenient way to pay people that you trust in near real-time, with payments usually transferring within minutes.
Step 2: If you don't personally know the person selling the goods or services, use Zelle to pay for them.
The use of Zelle to pay for items bought through online bidding and sales websites is discouraged as these are places where scam artists will often trick people into sending them money.If you send money to someone for a concert ticket and they don't deliver it, you will be responsible for the money and your bank will not be able to recover it.
Step 3: You are protected from unauthorized transfers made through Zelle.
Regulation E protects consumers from unauthorized electronic transactions if they are reported in a timely manner."Unauthorized" means the transfer was initiated by someone other than the consumer and without actual authority to initiate it.
Step 4: Many banks have systems in place to help detect and prevent fraudulent Zelle transfers.
Ensuring that neither the sender nor receiver of the funds is listed in OFAC's Specially Designated Nationals And Blocked Persons List is a common method of detecting and preventing fraudulent transactions.If your bank discovers that the transfer may be fraudulent, they will usually block it and potentially freeze your account until they can speak with you.
Step 5: Zelle does not offer any additional fraud protection.
Regulation E requires banks to give consumers certain protections, but they are limited in scope and do not cover all types of fraud claims.If you send money to someone and they don't provide goods or services, you have fraud protection.Your bank won't reimburse you for the money you sent because of the disputes between you and the seller.
Step 6: You should immediately report unauthorized transactions to your bank.
You should immediately report unauthorized Zelle transfers to your bank if you don't know if your specific case has any fraud protections.You have to report the fraud in a timely manner if you want to avoid liability.Your bank will want to know what happened in order to investigate.In order to help your bank process your fraud claim in a timely manner, be open, honest, and share all pertinent information.