While Zelle is the easy way to pay friends, family, and people you trust, fraudsters frequently target Zelle. A popular fraudster scheme is to trick Zelle users into thinking they are transferring funds to themselves under the guise that it will replace funds originally stolen from their account. However, the Zelle transfers ultimately go to the fraudsters!

Here’s how the scam works:
1. A fraudster sends a text alert that appears to be from the Zelle user’s financial institution (FI), indicating that a large dollar transfer was made with Zelle.

2. The fraudster then calls from a spoofed phone number, appearing as the FI fraud department, and tells the Zelle user that the supposed fraudulent transfer went through, but the funds can be recovered.

3. The fraudster tells the Zelle user that they may transfer the funds back to their own account, but they must first remove the mobile number associated with their Zelle payment account and then re-link the mobile number.

4. Once the Zelle user removes their mobile number from their Zelle account, the fraudster actually links the Zelle user’s mobile number to their own account. A Zelle verification code is then generated and sent to the Zelle user to link their mobile number with what they believe is their own account.

5. The fraudster then requests that the Zelle user provide them with the verification code. Once provided, the fraudster enters the code to link the mobile number to their own Zelle account.

6. The Zelle user is then instructed to send themselves the funds that were originally reported to have been stolen. In doing so, the Zelle user is actually transferring the funds to the fraudster’s Zelle account that is now linked to the Zelle user’s mobile number.

HERE'S HOW TO AVOID BEING A VICTIM: