HOUSTON — Zelle is a popular way to pay and it’s convenient, too. A new government report suggests that you need to be careful when using the electronic payment service.
Sen. Elizabeth Warren’s office looked into Zelle and found nearly 200,000 cases of fraud between 2021 and the middle of this year. You can read the report here.
Customers reported being scammed into making a payment and the losses are more than $213 million.
In the majority of Zelle cases, Warren’s office found that the bank didn’t repay customers. Zelle is owned by Bank of America, Capital One, J-P Morgan Chase, PNC, Truist, U-S Bank, and Wells Fargo.
Here are three tips to avoid fraud on Zelle.
- Only send money to family and friends. Even if a seller asks you to pay on Zelle, don’t say yes unless you know them.
- Double-check to make sure you have the correct cell phone number or email for the person you’re paying. Send a small test amount if you’re not sure.
- Use 2-step authentication and a strong, unique password so no one else can access your account.
The banking industry trade and advocacy group “Bank Policy Institute” has disputed Warren’s findings. BPI claimed Zelle’s rivals, such as Venmo and Cash App, receive more reports of disputed transactions.