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7 common Zelle scams and ways to avoid them

We live in a time of online banking, meaning when it’s time to send someone money, there’s a good chance you’re using a money transfer service like Zelle rather than handing over actual cash. While a platform like Zelle (which can be used directly through many financial institutions) is a convenient and secure way to send and receive money, scammers have yet again found ways to get their grimy hands in the pot, so to speak.

says Zelle is safe to use, but it’s still important to stay alert and be aware of common Zelle scams, so you can keep your money safe.

What is Zelle?

Zelle is a money-transferring service used by many of the largest banks in the U.S. It allows users to quickly and directly send and receive money to and from their bank accounts. Think Venmo, but direct to your bank account instead of into a third-party-service (which then requires another transfer into your actual bank account).

How safe is Zelle?

Seeing as Zelle is used by most U.S. banks, and deals with an endless number of transactions a day, Zelle is safe to use on the whole. But, Zelle can only be as secure as its users allow, which means scammers can still take advantage if you’re not paying attention.

Will Zelle refund money if scammed?

The good news, Zelle announced in November 2023 that it to certain scam victims. The bad news, it will only do so for qualifying imposter scams (these will be covered below), which is better than nothing, but can still leave you vulnerable.

Common Zelle scams

Here are some of the most common scams to watch out for when using Zelle:

Imposter scams

To a certain extent, almost all scams involve imposters. The scammer pretends to be someone they aren’t (also known as ) to trick you into sending money that they then disappear with.

When it comes to Zelle, users are sometimes protected from certain imposter scams, specifically in these situations:

• Financial institution impersonators. Scammers pretending to be from a bank or other financial institution claiming they need you to follow a link to verify some information. The link is of course a .
• Government impersonators. These scammers will contact you claiming to be from the IRS, Social Security Administration, Medicare, or some other government branch, and will try to get you to give them personal information, click a link, or even just send them money.
• Zelle refund impersonators. Refund scams involve scammers that impersonate Zelle agents. They will tell you that a fraudulent transaction was flagged on your account, and then will trick you into sending money as part of a “refund process.” In reality, you just sent money to a scammer.

As mentioned, Zelle has begun protecting victims of impersonator scams such as the ones mentioned above, but they don’t cover all impersonation scams. Some impersonator scams that are not protected:

• Friend and family impersonators. These scammers will reach out to you pretending to be a friend or family member in desperate need of a quick Zelle money transfer. They will usually have just enough information to disarm you and pretend to be in enough of a panic that you don’t push too hard.
• Romance impersonators. This type of scam is more commonly referred to as “c” and involves someone pretending to be a different person to trick their victim into believing they are in a romantic relationship. They then use the relationship to take advantage of the victim, often in the form of asking for financial favors (such as sending money via Zelle).

How to protect yourself:

When dealing with someone online or on the phone, always try and verify who you are talking to. A tool can go a long way toward helping you verify that the person you are talking to on the phone is who they say they are. Note that no government agency or financial institution will ever ask you to send money over the phone, via text message, or even via email. If the call seems legit but you aren’t sure, feel free to hang up and contact the agency/institution via the phone number or email on their authentic website.

And never click on a link that is sent to you from an unverified contact.

Work-from-home scams

When you’re on the job hunt, seeing a response from a potential employer can be exciting. Unfortunately, scammers have found a way to capitalize on that excitement in this common type of Zelle scam. These scams play out as follows:

1. You apply for an enticing “work-from-home job.”
2. Someone (a scammer pretending to be a hiring manager) reaches out, usually via text or some other messaging app.
3. You’re told you got the job, but there is an onboarding/equipment/training fee you need to pay first (huge red flag).
4. You send the money and poof, the scammers are gone with your money, and you’re still looking for a job.

How to protect yourself:

When it comes to landing a new gig, real employers will almost always have some sort of call or in-person interview. If the whole thing is done via text or messaging app, be wary. Also, as a general practice when it comes to Zelle, never give out your Zelle information (such as your email or phone number) unless you’re absolutely sure you know who you are sending it to. Final tip, most jobs won’t require you to pay them in order to start.

Account takeover

One of the most common and most damaging Zelle scams is an account takeover. This kind of scam goes as follows:

1. The scammer will attempt to make contact with you and get you to click on a link. Usually, that link is a fake login link, that will look identical to a real website, but is in fact not.
2. Once you’ve logged into your account (or so you thought), the scammer will have your account information.
3. They then quickly change your email and password on the account, so you no longer have access.
4. Once they fully have your account in their control they will send money via Zelle since it is hooked up directly to your bank account(s).

How to protect yourself:

While Zelle is safe if used in conjunction with cybersecurity best practices, having a service that is directly linked to your bank account can obviously be a bit sensitive. When it comes to logging into your Zelle account, only ever do so directly through their official website or app.

Other safety tips for Zelle

Zelle uses data encryption, meaning if your account is going to be compromised, it will almost certainly be due to a lack of vigilance or knowledge when dealing with a scammer in disguise. While it might seem unsettling at first, you can use Zelle with the utmost confidence, so long as you stay on your toes when it comes to potential scammers.

Outside of that, there are a couple other good practices to use when sending or receiving money through Zelle. Because Zelle doesn’t charge any fees to use, if you are sending or receiving a large amount of money, have the sender start by sending $1 to ensure everyone has the correct information and that the money ends up in the intended account. After that, you can confidently send the rest.

Another important tip is to know who you’re dealing with via Zelle. If you believe your transaction is legitimate, and there are no signs of a scam but want to make sure, use a tool to see if things check out.

Just remember, it’s always good to be cautious when it comes to your money.

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