Zelle® scams are on the rise

Zelle® is an incredibly popular way to send and request money with friends, family, and people you know. It’s popular because it’s simple to set up, fast, and free. Money moves from one account to another in minutes.

While Zelle® is a safe way to transfer funds, incidents of attempted Zelle® fraud are skyrocketing as its popularity increases. One reason is that once money is sent through Zelle®, it cannot be reclaimed. Zelle® does not offer a protection program for any authorized payments. Once you authorize a payment, the money is gone from your account.

Online buying and selling scams

The internet created a huge marketplace — items and services are bought and sold on Facebook Marketplace, Instagram, Craigslist, and other listing services. While this is a convenient way to expand your options, it creates a vast global marketplace for scammers.

If you look to buy something online, you may receive a Zelle® request for payment before you receive a good or service. Be wary — you may never receive the item or service after you send a Zelle® payment. Arrange to see the item or pay after a service is performed.

When you sell online, be sure the money requested via Zelle® is in your account. Don’t accept a screenshot of a transaction as proof of payment. Buyers may also claim to “overpay” for an item and then ask you to refund the difference, but no payment is ever received.

These fraudulent goods can include concert tickets and real estate scams — both are common in online shopping and sales conducted over social media, like Facebook groups, or via DMs.

Pay yourself scams

If you receive a text or call from someone saying they represent a bank or entity that claims your account is on hold or has suspicious activity, be suspicious!

In a “pay yourself” scam, a scammer encourages you to send money via Zelle® to a new “safe” account that’s been set up for you. That account may exist, but it’s controlled by a scammer.

Lottery and prize scams

Imagine getting a note that you’ve won a prize or sweepstakes! In your excitement, you do what’s asked — pay a fee or tax via Zelle® to claim your winnings.

Unfortunately, that instant transfer is just what a scammer wants. There was no prize or award — just lost money. If you receive a notification of a prize or award — no matter how legitimate it looks — verify who sent it.

Charity scams

During and immediately after a crisis, like a natural disaster, we see a spike in charity scams using Zelle® and other payment methods. Scammers create fake charitable organizations or false materials in the name of reputable charities. They solicit donations using social media, text, email, and phone calls. If you answer a call from a scammer, they will try to keep you on the line until you donate, telling you stories of suffering and all the ways your Zelle® donation will help.

Bank impostors

Impersonators are bold enough to reach out to bank clients — including Fremont Bank clients — over text, calls, email, and even social media. The sender may seem to be associated with Fremont Bank. The impersonators may send a legitimate-looking invoice saying you owe money, need to reverse a transfer, or are about to receive a refund. They’ll ask for a Zelle® payment to rectify the issue. But a quick check could reveal that the request has been sent from a non-Fremont Bank email.

Remember:

Fremont Bank will never ask for your password, your PIN, or a one-time access code. If you get a call asking for that information, hang up. If you’re concerned about your account, call us directly at (800) 359-2265.

Text and email payment requests

A text from the IRS, a tollway, a friend, or a family member in distress arrives with a request to send a Zelle® payment immediately. This false sense of urgency is designed to get you to act without pausing to assess where the request originated.

Sometimes, the notification claims to confirm an overpayment or indicates that you’ve been refunded too much and must return the difference via Zelle®.

We’ve also seen Zelle® requests as part of which prey on someone through a fake romantic relationship made over a dating site, social media, or “wrong number” text or call that leads to follow-up conversations.

Investment opportunity scams

A request for a Zelle® payment may also be part of an investment scam. Again, preying on the fear of missing an opportunity, scammers request funds for an exciting investment opportunity — cryptocurrency, real estate, stocks, you name it.

The scammer may sound legitimate, share testimonials and market updates, or try to impress you with jargon and knowledge. By pressing you for a time-sensitive payment, they promise you’ll maximize investment returns.

Employment opportunity scams

Fake job listings posted on legitimate job websites and social media or sent via email lure someone into the potential of a job change, promotion, or chance to make more money. These jobs may be appealing because of high pay, flexibility, or reduced work requirements.

Be wary. It could be a scam if you receive an offer and are immediately asked to send a Zelle® payment for background checks, processing fees, materials and supplies, or other items to get up and running.

Your bank account is hacked

While all these scams involve losing money via Zelle® and not getting it back, fraud in the form of a hacked account is different. You can typically get those funds back, since you didn’t authorize the transaction. If you suspect fraud — either from unauthorized activity or because you are now locked out of an account — report it immediately to your bank. Be sure to monitor your accounts and credit reports for other issues.

Six ways to use Zelle® more safely

1. Send or request money only in transactions with people you know.
2. Check the email or URL associated with a Zelle® request.
3. Do not click on links, open attachments, or reply to potential scams. Even if the number or email looks legitimate, it may be spoofed. Contact the intended recipient and ask if they requested funds.
4. If you’re buying something, ensure that the goods exist or the service has been performed.
5. If you’re selling something, be sure the money requested via Zelle® is in your account. Don’t accept a screenshot of a transaction as proof of payment.
6. Use Zelle® through your Fremont Bank app or online banking. When you use Zelle® within our mobile app or online banking, your information is protected with the same technology we use to keep your bank account safe.

Many scams we hear about are similar to those described above, regardless of payment method. Read more about seven common scams we're seeing.