Zelle fraud is rising. And banks aren't coming to the rescue

[Yo_Mama_Been_Loggin]

Zelle, the popular payment app, is under fire for how it handles (or rather, doesn’t handle) fraud and scams that have exploded on the platform in recent years.

The New York Times called Zelle out in two reports earlier this year. That grabbed the attention of US senators, who pressed the CEOs of the nation’s large banks that own the platform in hearings last month and began an investigation into the service.

Here’s the deal: On Monday, Senator Elizabeth Warren’s office said its investigation into Zelle showed that fraud and theft are not only rampant but getting worse. And once people report fraudulent transactions, banks are reimbursing only a small fraction of the swindled customers.

“Big banks own and profit from Zelle but are failing to make their customers whole for both authorized and unauthorized fraudulent activity on the platform, despite their claims that it is safe,” Warren’s office wrote.

https://www.msn.com/en-us/money/markets/zelle-fraud-is-rising-and-banks-aren-t-coming-to-the-rescue/ar-AA12yTHD

[onecaliberal]

1. They got 3,600 from us, Wells Fargo actually

Tried to help us but their investigation said we have permission, which we fucking didn’t do. They could not show us the proof that we permitted the fraud but none the less, we didn’t get the money back.

[mitch96]

4. "Wells Fargo actually". WF is still up to their shenanigans of signing up people to accounts

without telling them. I got signed up to "Zelle" without my knowledge or consent. The only way I found out was I got a notification of a change in their "agreement" with me. I called WF and went thru the whole circle jerk of who what why and they drew a blank. I told them to remove me from Zelle or I would walk. They said I was removed but I still kept getting Zelle info. It took a few calls and threats but all is well. I never wanted it, never used it.... UFF
Wells Fargo sucks.. The people at the branch I deal with are great but the parent company leaves a lot to be desired..
m

[onecaliberal]

10. Parent company sucks.

We’re in the process of moving everything to the credit union. That incident was the last straw for me.

[iemanja]

15. Zelle is automatically on my banking app

US Bank.

[egduj]

6. By law banks have to provide to you all documents used to deny your claim, if requested.

Call them back and state you're taking advantage of your right-to-documentation. There is no statute of limitations, so to speak, either.


Per Reg E:

A financial institution is required to follow specific regulatory requirements if it determines an error has not occurred or an error occurred in a manner or amount different from what the consumer described. Within three business days after completing its investigation, the institution must report its results to the consumer. This explanation of findings must be in writing and disclose the consumer’s right to request the documents relied upon to make the denial.

[onecaliberal]

14. Thank you for this. I will absolutely call and ask.

[Amishman]

21. As soon as you start quoting banking regs at them, they'll typically shit themselves

Every bank I've worked for has been terrified of regulators.

[gratuitous]

2. As long as the bank gets its cut

Who cares what happens to the chump that loses his money?

[Hortensis]

5. In four decades, none of our banks have EVER had us pay losses

from criminals managing to access our account in some way, and it has happened.

I don't know the rest of the story here, but there's more to know. Including that people may choose to avoid using Zelle amap even though it's handy and available.

[MagickMuffin]

3. Thx for the heads up. I will not accept any payments through Zelle

Sorry to those this has happened to.

[hlthe2b]

7. Well, I've heard of a lot of auto payment services, but admittedly not Zelle--thankfully as it turns

Last edited Tue Oct 4, 2022, 05:20 PM - Edit history (1)

Which other ones are questionable? Venmo?

[ProudMNDemocrat]

8. When I tried to sell things online...

As I indicated PayPal only, those interested in buying what I was selling said they use Zelle and I should sign up. I declined and said "sorry. PayPal or no sale "

Good thing I stuck to my guns.(NO pun intended. )

[LeftInTX]

11. I'm out of the loop, but looks like Zelle is owned by the banks

I've never used any transfer apps, except when a few friends crowd funded. In that instant, we used Pay Pal.

[JI7]

25. How about Venmo ? I don't know much about it but people have asked me

if I have that when they wanted to buy something from me.

[Tetrachloride]

9. ty for the info. i am out of the loop

on most apps. Old school.

[I_UndergroundPanther]

12. Banks

corrupt rich republicans and the corrupt chamber of commerce ,and other repuke organizations are suspect in my mind.There is so much shady shit going on with business as usual its crazy

[Shipwack]

13. Even when it works, Zell is next to useless.

I had to send my alimony payment to my ex. I got paid early, so I decided to be nice and send it early.

I got her bank info, and sent it off. Got told that it was going to take three business days for the money to get to her. How are these electrons moving so slowly? I could literally drive the money to her faster.

Three days later, she doesn’t have the money. She panicking and calling me asking where it was. If I wanted to talk to her we wouldn’t be divorced. ::smh:: I send her a screenshot showing that I sent the money previously. Bank (BOA) is useless. All they can do is tell me the money left my account.

Three days after that I get a message that the transaction was refused and the money would “soon” be back in my account. Turns out my ex had given me the wrong routing numbers, even though I verified it with her twice. But the bank couldn’t let me know three days ago (let alone 5) there was an issue?

This is why I’m switching back to my credit union…

[iemanja]

16. Mine is done almost immediately.

It may vary by bank.

[EX500rider]

17. I use Zelle thru BOA and it is immediately deposited

I love it, fast and no fees.
But my customers already have it set up, all they need is my cel #.

[Shipwack]

19. Huh, that's weird...

I's always three days for me, unless I pay extra. You would think that all BOAs would be the same.

[GoodRaisin]

20. Zelle works great for me too. Thanks to Zelle and my credit card

I never handle money anymore.

My transactions all go through in literally seconds, sending or receiving.

[FrankChurchDem]

23. You should be happy it was a domestic transfer

A wrong routing number on international transaction and **poof** , the money disappears.

[mitch96]

18. Elizabeth Warren is on the war path with Zelle and the big banks...

https://www.npr.org/2022/10/04/1126806924/sen-warren-says-the-big-banks-that-own-zelle-arent-doing-enough-to-protect-users

[ecstatic]

22. Someone accidentally sent me $500 a few years back

using the email address method. Apparently I had been included on a bunch of email chains for years but Gmail would tuck those correspondences away and I never saw them until I explicitly searched for the email address. Anyway, the guy's bank refused to help him, so he emailed me directly. I submitted a claim with my bank because I wasn't about to get scammed myself. Eventually my bank helped him and the problem was resolved. Had I not been willing to help, the sender would have been SOL.

I'll check out the article when time permits because I'm only aware of zelle issues based on not knowing a person's correct phone number or email address.

[JI7]

24. I didn't know the banks themselves owned Zelle

I was asked to use it once when I was having some issues with something. But I never signed up for it although I was still thinking about it . But I will look into this more now before I consider it .