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<\/figure>\n<\/div>\n\n\nThis story is playing out all over the Tampa Bay area\u2014and across the country. Crooks either hack into consumers\u2019 devices or get in using phishing techniques, or crooks trick consumers into unknowingly sending them money through Zelle.<\/p>\n\n\n\n
Once the money is gone, it\u2019s nearly impossible to get it back.<\/p>\n\n\n\n
Two Democratic senators, Elizabeth Warren of Massachusetts and Robert Menendez of New Jersey, wrote a letter last year to Early Warning Services, Zelle\u2019s parent company. In the letter, the senators say, \u201cyour company and the banks have a clear responsibility to more aggressively protect consumers.\u201d<\/p>\n\n\n\n
The senators demanded answers, including how banks and Zelle determine which consumers get their money back and which don\u2019t. They also want to know what\u2019s being done to prevent fraud in the first place.<\/p>\n\n\n\n
Recently, four major banks responded to the senators\u2019 questions, saying that in the past 18 months, consumers reported 192,878 Zelle fraud cases, worth collectively $213 million in losses. Of those nearly 200,000 reports, banks reimbursed consumers in just 3,500 cases.<\/p>\n\n\n\n
Zelle is created and owned by a consortium of major U.S. banks, including Bank of America, Chase, Capital One, and Wells Fargo. It\u2019s free, and last year people sent $490 billion through Zelle \u2013 more than twice Venmo\u2019s $230 billion, according to the New York Times.<\/p>\n\n\n\n
So how can you protect yourself?<\/p>\n\n\n\n
Most Zelle fraud starts with tricks and phishing techniques, according to the FBI.<\/p>\n\n\n\n
In one common scam, the crook pretends to be the bank itself. You may receive an email or text message asking you to confirm a large, fake Zelle payment. When the user replies that they didn\u2019t authorize the transfer, the scammer follows up with a phone call pretending to be the bank. The phone number is typically spoofed so it shows up on caller ID as the bank. You\u2019re then walked through instructions on how to reverse the unauthorized claims. What happens, though, is that you are transferring money directly to the criminals.<\/p>\n\n\n\n
Don\u2019t give any personal information over the phone, and don\u2019t click on text message links from people you don\u2019t know.<\/p>\n\n\n\n
The Consumer Financial Protection Bureau clarified its position<\/a> on banks\u2019 required compliance with the Electronic Fund Transfer Act of 1978<\/a> last year. The CFPB says that \u201cif a third party fraudulently induces a consumer into sharing account access information,\u201d that consumer should receive the same protections as if the money were acquired from a stolen debit card or other banking \u201caccess device.\u201d<\/p>\n\n\n\n