NEW YORK (WABC) — There is a consumer warning about a bank scheme that’s fooling customers, costing them thousands of dollars in just seconds.
It starts with an innocent looking text warning about fraud in your bank account, then a conniving phone call.
Even some of the savviest consumers are losing money, and 7 On Your Side has the warning signs and ways to get back your money if you’ve been scammed.
“I was sick to my stomach,” victim Barbara Zyhajlo said.
She was out for a walk when the scam struck, receiving a text message asking if she just authorized a Zelle transaction for $1,375.50.
“I wrote no, and so instantly, two minutes later, I get a phone call,” she said. “It’s a guy, he says his name is Shariff, he’s here to help me.”
RELATED | Man loses half his savings in bank transfer scam
She was certain the call came from Bank of America, but it was not. Both the text and the call were not her bank, but a growing nationwide scam striking people coast to coast.
7 On Your Side at our sister stations in San Francisco and Chicago flagged nurse and teacher who were taken for $3,500 each in the same way as Zyhajlo, a phlebotomist with the Red Cross who kept working to support her family on the front line of the fight against COVID.
“I’m a single mom,” she said. “I’m trying to take care of my kids the best I can.”
Now she’s in the red after being convinced to use Zelle to transfer all the money in her checking accounts to a new account.
She had never even used Zelle before.
“He had me put my own name, and then that’s why it seem like going to a new account that he created,” she said. “(I realized it was a scam) maybe an hour after I did it, when I went back into my account and saw there was no money in it.”
She immediately called the bank and open a claim to try and recoup her rent money.
“I get a letter back saying that my dispute was closed, they closed it,” she said. “That they can’t help me.”
That’s when she called 7 On Your Side, and we asked Bank of America to take a second look at the fraud.
“I was ecstatic to get it back,” Zyhajlo said. “I was so happy.”
Hours after we asked, her money was restored, the full $607.84.
“I love 7 On Your Side,” she said. “I would recommend it 100 times over again…You guys are definitely my favorite news station.”
RELATED | More victims of Bank of America, Zelle scams come forward
Privacy rules prohibited Bank of America from discussing the case, but the big takeaway is a warning to never transfer money or provide personal information as a result of an unsolicited call, text, or email.
Band of America says they’ll never ask a customer to do it.
If you feel you’ve been scammed, contact your bank and start a fraud investigation.
But the most important part is to get a police report and submit it to your bank as part of the investigation.
Zyhajlo did not, but you’ll have a much better chance of getting your money back if you get and provide one.
Bank of America sent us the following statement:
In cases like this, scammers may spoof legitimate phone numbers and impersonate legitimate businesses and attempt to convince individuals to provide their personal information. We remind clients that they should not provide confidential account information to unidentified individuals. Bank of America and other legitimate companies would not ask a customer to transfer funds between accounts in order to help prevent fraud nor request sensitive account information. We alert clients during the transaction if they are sending money to a new recipient that they should only send to people they trust. Additionally, they see: “BEWARE: Bank of America will never ask you to transfer money to anyone, including yourself. Don’t transfer money as a result of an unexpected text or call.” To move forward with the transaction, they need to click OK. We also have a number of measures in place to proactively warn clients about scams, and we periodically reach out to customers with information about how to stay safe and avoid scams. In addition, we keep clients informed about new scam alerts through our Client Security Center on our website.
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FAQs
What is the Bank of America Zelle scam?
In reality, the money went straight to the scammers, who had entered Eduardo’s name and cellphone number into their own Zelle account, registered in the scammer’s name. A warning had popped up from Bank of America, flagging it as a possible scam, but at the urging of the imposters, he clicked to “send anyway.”
Can you get scammed receiving money on Zelle?
Because Zelle transactions require authorization from the account holder, victims of Zelle scams have had troubles receiving compensation from banks for their fraudulent losses
Can someone steal your bank info from Zelle?
If someone gained access to your bank account and made a payment with Zelle® without your permission, and you weren’t involved in any way with the transaction, this is typically considered fraud since it was unauthorized activity.
How do you get money back from Zelle If scammed Bank of America?
If you are enrolled in Zelle® with a participating financial institution, you must reach out to their customer support team. If you are enrolled with the Zelle® app and found an unauthorized transaction, please call us directly at 1-844-428-8542. Select a category below and then complete the form to report the scam.
How do I know if I am talking to a scammer?
Know what to look for
you don’t know contacts you out of the blue. you’ve never met in person asks for money. asks you to pay for something or to give them money through unusual payment methods such as gift cards, wire transfers or cryptocurrencies.
Is it safe to accept Zelle payment from strangers?
No sensitive account details are shared when you send and receive money with Zelle® ? only an email address or U.S. mobile number tied to a bank account in the U.S. Authentication and monitoring features are in place to help make your payments secure, but, pay it safe: Only use Zelle® with people you trust, and always …
What can a scammer do with my bank account number?
When a scammer has your bank account and routing numbers, they could set up bill payments for services you’re not using or transfer money out of your bank account. It’s tough to protect these details because your account number and routing number are hiding in plain sight at the bottom of your checks.
Can someone hack your bank account with Zelle?
Crooks either hack into consumers’ devices or get in using phishing techniques. Some trick consumers into unknowingly sending them money through Zelle. Once the money is gone, it’s nearly impossible to get it back. The explosion of fraud cases via Zelle is getting the attention of federal lawmakers, including U.S. Rep.
Is Zelle safe to send money to strangers?
Think you can spot a scam? Check out our series and take our quiz! With Zelle®, you can send money from your account to someone else’s within minutes1. It’s a great way to pay friends, family, your coworkers and almost anyone else you trust, but it shouldn’t be used to pay strangers.
Can you get scammed if someone sends you money?
A money mule is someone who is used to transfer and launder illegally acquired money on behalf of someone else. These scams can happen in several ways and can be related to online dating, work-at-home jobs or gifts and prizes. Scammers will send money to you and then ask you to send some of it to someone else.
Can someone hack your Zelle account with your phone number and email?
?To avoid having your Zelle account and other accounts taken over by hackers, never provide your username, password or PIN in response to any email, text message or phone call unless you have absolutely confirmed that the request for this information is legitimate, which it never is,? Weisman says.
Can a scammer access my bank account?
Yes, this is possible. Identity theft was the number one reported type of fraud in 2020 [*], according to the FTC. When scammers gain access to your personal information by phishing, for example, they can do one or more of the following: Gain access to your bank account and spend or transfer all your money.
What are the risks of using Zelle?
The big risk with Zelle, Wetzel says, is that if you are scammed, there is no protection. “These peer-to-peer payment services are not going to shoulder any losses for a consumer,” she said. “If you do get scammed out of money the chances of you getting that back is very unlikely.”
Bank of America customer loses thousands after being tricked …
Bank of America customer loses thousands after being tricked by Zelle scammers with personal infoSAN FRANCISCO (KGO) — In a widespread scam, bank imposters are tricking people into sending them money with Zelle, the popular quick payment app.The scam has been going on across the country for more than a year.RELATED: Lawsuit claims Bank of America failed to warn customers they might get scammed using ZelleNow more are coming forward – among the latest is a San Francisco man who says the imposters knew all of his banking information, which led him into the trap. He said the shock was more than he could handle.”I had a panic attack,” said the victim, San Francisco resident Eduardo Carrascosa. “I just couldn’t believe, I just couldn’t believe it… $3,500 is a lot of money.”That’s how much he lost, in an instant, back in June. Carrascosa says it happened while he was busy at work, managing shipping at a time when companies are trying to unclog the supply chain.”I got a call from ‘Bank of America,'” he said, using air quotes as he said the bank name. At the time, he thought it really was his bank.The irony here: the imposters told him scammers had changed his Zelle account to send themselves money. In fact, that is exactly what the imposters themselves were doing. Thousands of dollars, gone in an instant.A woman on the phone said someone was transferring $3,500 out of his bank account. Was he the one authorizing it?VIDEO: Bay Area woman’s new job turns out to be Zelle, gift card scam”No, that’s not me, go ahead and cancel it,” Carrascosa said he replied. “Let me get back to my work.”But the woman said he had to quickly reverse the transaction, or he’d lose his money.”So I started to, you know, red flags,” Carrascosa recalls. “So, I googled the number that was calling me.”Carrascosa was suspicious, but a Google search showed the caller ID on his phone was a real B of A phone number. Then, a man came on the phone, supposedly the woman’s supervisor.Carrascosa said he kept quizzing the man, trying to determine if he really was a banker.”I thought I was outsmarting them,” Carrascosa recalls. “I usually don’t make customer service reps answer all those questions but I was suspicious.”He said the man answered all the questions correctly. “He knew my debit card number, my checking account number, cellphone number, address.”However, the man did answer vaguely when asked how long Carrascosa was a bank customer. “He said he’d been there 10 years.”VIDEO: Bay Area man loses $380K investing in cryptocurrency suggested by woman he met onlineThe man told him someone had linked Eduardo’s cellphone number to their own Zelle account, and was using it to transfer $3,500 out of his account. He had to change the number back.The irony was, that was exactly what the imposters themselves were about to do.Zelle works by registering either a phone number or email to receive money in an instant. Critics say that single factor, plus the speed of the transfers, and the fact they can’t be reversed, make it too easy for scammers to steal money with Zelle.Which these imposters were about to do to Carrascosa.”I was really suspicious and nervous. But at that point, I was already trapped,” because they had so much information about him, he said. “I was gonna do what they told me, you know.”The man told Carrascosa to type his own name and cellphone number as a recipient in his own Zelle account, so he could then send that $3,500 back to himself. It seemed strange but also oddly safe.”I should have hung up. I thought about hanging up,” Carrascosa recalled. “But I also thought, well, if I’m the recipient,…
Zelle scam: Lawsuit claims Bank of America failed to warn …
Lawsuit claims Bank of America failed to warn customers they might get scammed using ZelleOAKLAND, Calif. (KGO) — 7 On Your Side has reported about the many scams that drain their victims’ bank accounts using Zelle, the popular quick-payment app owned by major banks. Fraudsters use a variety of schemes to trick victims into sending them money. The transfers are so fast, that they can’t be traced or reversed.Now, a class-action lawsuit claims Bank of America has failed to warn customers about the risks of sending money through Zelle.Zelle is the most widely-used peer-to-peer payment app in the country. Hundreds of banks automatically add Zelle to their online and mobile banking apps. It’s simple to use and money is gone fast. Which makes it the perfect tool for scammers.7 On Your Side has interviewed many Bank of America customers who were tricked into sending money to bank imposters using Zelle. All were shocked to find out that Bank of America offers no fraud protections for Zelle transactions.RELATED: Bank of America won’t say why it gave refunds to some Zelle scam victims but not othersNow, Bank of America is defending a federal class-action lawsuit claiming it encourages customers to use Zelle without warning about the “huge security risks” of linking Zelle to a bank account.The suit, filed in federal court in Oakland, says Zelle is now the nation’s most popular peer-to-peer payment app with $490 billion in money transfers last year alone.And yet it has “a massive fraud problem.”The suit says Bank of America is aware of the risks to customers, but still “touts Zelle as a secure, free and convenient way to make money transfers.”VIDEO: Bank impostor taunts San Jose woman after stealing $3,500 using her nameOnce money is sent, it says, “there is virtually no recourse for consumers to recoup losses” due to fraud.A Bank of America spokesman said only: “We disagree with the allegations and will seek to have the case dismissed.”The plaintiff is a San Jose man who fell for a phony job scam. He sent $2,500 to the fraudsters via Zelle, and another $2,400 using Venmo. Bank of America denied his claim for reimbursement.BofA has often pointed to the customer service agreement which says: “Neither the bank nor Zelle offer a protection program for authorized payments.”VIDEO: Calif. woman loses over $18K through ‘Zelle’ after scammers text, call her pretending to be bank But the suit says that warning is missing from marketing materials.BofA initially denied claims of those who were defrauded by those bank imposters over the past two years.However, after 7 On Your Side pointed out they were tricked into sending the money, B of A reversed itself and reimbursed each of the customers we brought to their attention.The class action names only Bank of America as a defendant – not Zelle or Venmo. It asks for relief for B of A customers who were defrauded through Zelle or other payment apps, without being refunded. Bank of America has yet to file a response in court.Take a look at more stories and videos by Michael Finney and 7 On Your Side.Have a question for Michael and the 7 On Your Side team? Fill out the form HERE!7OYS’s consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area. We assist individuals with consumer-related issues; we cannot assist on cases between businesses, or cases involving family law, criminal matters, landlord/tenant disputes, labor issues, or medical issues. Please review our FAQ here. As a part of our process in assisting you, it is necessary that we contact the company / agency you are writing about. If you do not wish us to contact them,…
How to Identify a Bank Scam to Keep Your Account Safe
How to Identify a Bank Scam to Keep Your Account SafeSkip to main contentHow to Avoid ScamsThink you can spot a scam?Think you can spot a scam?To help you learn how, we’re sharing the Explainer Series, “The Science Behind Scams”, courtesy of Vox and Zelle®.Learn more how to pay Zelle safe layer to help you stay secureKnow the red flagsThe most common types of scams will target you through fake emails, text messages, voice calls, letters or even someone who shows up at your front door unexpectedly. No matter which technique the scammer uses, you may be:Instructed to not trust Bank of America, or to respond to questions in untruthful waysPressured to send moneyThreatened with law enforcement actionTold to purchase gift cards and provide codes as a form of paymentAsked to cash a check for a stranger or send money via wire transfer or Zelle®Asked to deposit a check that overpays for something you’re selling, then send the difference elsewhereIf you authorize a transfer or send money to a scammer, there’s often little we can do to help get your money back.Rental scamsLooking for a vacation rental or thinking about renting a new place? Imagine showing up to your dream vacation or new home only to find out that you’ve been double booked – or that the place doesn’t actually exist.Scammers can take over a real rental or real estate listing by changing the email address or other contact information, then listing it on another site.What to look out for:Being pressured to urgently send a security deposit or make a payment to hold the property before you even see it or sign a lease.Being asked to wire money instead of sending a check. Once the money is gone, there’s almost no way to get it back.Pay attention and do your research on the owner(s) and listing: is it vague? Do the photos have watermarks? Does the rent amount sound too low? Remember: If it sounds too good to be true, it usually is.Know the scamsScammers use different tactics to get victims to fall for their schemes. In some cases, they can be friendly, sympathetic and seem willing to help. In others, they use fear tactics to persuade a victim. Select the scam type from the following list to see a typical message from a scammer and the red flags that should cause you concern.CHECK CASHING SCAM(typical message): “Excuse me, I left my wallet home, can you cash this check for me?”Red flags include: You’re approached outside a bank branch and asked to cash a check for someone who claims they don’t have an account or left their ID home. The bad check will be held against your account when it doesn’t clear.FAKE GOODS SCAM(typical message): “We can offer you those goods at a considerably lower price than retail.”Red flags include: You’re asked to pay a very low price for typically expensive items (for example: $49 for a $300 pair of sneakers). Never transfer money (for example, by using Zelle®) to someone you don’t know.FAKE RENTAL SCAM(typical message): “Hi, I see you received my rental deposit and wanted to follow up about the move in date.”Red flags include: Your house is legitimately listed for sale online, but…
Bank of America Zelle scam: Class action lawsuit claims BofA …
Lawsuit claims Bank of America failed to warn customers they might get scammed using ZelleOAKLAND, Calif. — 7 On Your Side has reported about the many scams that drain their victims’ bank accounts using Zelle, the popular quick-payment app owned by major banks. Fraudsters use a variety of schemes to trick victims into sending them money. The transfers are so fast, that they can’t be traced or reversed.Now, a class-action lawsuit claims Bank of America has failed to warn customers about the risks of sending money through Zelle.Zelle is the most widely-used peer-to-peer payment app in the country. Hundreds of banks automatically add Zelle to their online and mobile banking apps. It’s simple to use and money is gone fast. Which makes it the perfect tool for scammers.7 On Your Side has interviewed many Bank of America customers who were tricked into sending money to bank imposters using Zelle. All were shocked to find out that Bank of America offers no fraud protections for Zelle transactions.RELATED: California woman loses over $18K through ‘Zelle’ after scammers text, call her pretending to be bankNow, Bank of America is defending a federal class-action lawsuit claiming it encourages customers to use Zelle without warning about the “huge security risks” of linking Zelle to a bank account.The suit, filed in federal court in Oakland, says Zelle is now the nation’s most popular peer-to-peer payment app with $490 billion in money transfers last year alone.And yet it has “a massive fraud problem.”The suit says Bank of America is aware of the risks to customers, but still “touts Zelle as a secure, free and convenient way to make money transfers.”SEE ALSO: Scams targeting Zelle app users rising as criminals get more creative; how to avoid losing thousandsOnce money is sent, it says, “there is virtually no recourse for consumers to recoup losses” due to fraud.A Bank of America spokesman said only: “We disagree with the allegations and will seek to have the case dismissed.”The plaintiff is a San Jose man who fell for a phony job scam. He sent $2,500 to the fraudsters via Zelle, and another $2,400 using Venmo. Bank of America denied his claim for reimbursement.BofA has often pointed to the customer service agreement which says: “Neither the bank nor Zelle offer a protection program for authorized payments.”RELATED: In latest Zelle scam, Wells Fargo customers lose thousands after fraudsters pose as bank employeesBut the suit says that warning is missing from marketing materials.BofA initially denied claims of those who were defrauded by those bank imposters over the past two years.However, after 7 On Your Side pointed out they were tricked into sending the money, B of A reversed itself and reimbursed each of the customers we brought to their attention.The class action names only Bank of America as a defendant – not Zelle or Venmo. It asks for relief for B of A customers who were defrauded through Zelle or other payment apps, without being refunded. Bank of America has yet to file a response in court.7OYS’s consumer hotline is a free consumer mediation service for those in the San Francisco Bay Area. We assist individuals with consumer-related issues; we cannot assist on cases between businesses, or cases involving family law, criminal matters, landlord/tenant disputes, labor issues, or medical issues. Please review our FAQ here. As a part of our process in assisting you, it is necessary that we contact the company / agency you are writing about. If you do not wish us to contact them, please let us know right away, as it will affect our ability to work on your case. Due to the high volume of emails we receive, please allow 3-5 business days for a response.Copyright © 2022 KGO-TV. All Rights Reserved.
Don't fall for scam involving Bank of America/Zelle cash transfer
Warning: Don’t fall for scam involving Bank of America/Zelle cash transferNEW YORK (WABC) — There is a consumer warning about a bank scheme that’s fooling customers, costing them thousands of dollars in just seconds.It starts with an innocent looking text warning about fraud in your bank account, then a conniving phone call.Even some of the savviest consumers are losing money, and 7 On Your Side has the warning signs and ways to get back your money if you’ve been scammed.”I was sick to my stomach,” victim Barbara Zyhajlo said.She was out for a walk when the scam struck, receiving a text message asking if she just authorized a Zelle transaction for $1,375.50.”I wrote no, and so instantly, two minutes later, I get a phone call,” she said. “It’s a guy, he says his name is Shariff, he’s here to help me.”RELATED | Man loses half his savings in bank transfer scamShe was certain the call came from Bank of America, but it was not. Both the text and the call were not her bank, but a growing nationwide scam striking people coast to coast.7 On Your Side at our sister stations in San Francisco and Chicago flagged nurse and teacher who were taken for $3,500 each in the same way as Zyhajlo, a phlebotomist with the Red Cross who kept working to support her family on the front line of the fight against COVID.”I’m a single mom,” she said. “I’m trying to take care of my kids the best I can.”Now she’s in the red after being convinced to use Zelle to transfer all the money in her checking accounts to a new account.She had never even used Zelle before.”He had me put my own name, and then that’s why it seem like going to a new account that he created,” she said. “(I realized it was a scam) maybe an hour after I did it, when I went back into my account and saw there was no money in it.”She immediately called the bank and open a claim to try and recoup her rent money.”I get a letter back saying that my dispute was closed, they closed it,” she said. “That they can’t help me.”That’s when she called 7 On Your Side, and we asked Bank of America to take a second look at the fraud.”I was ecstatic to get it back,” Zyhajlo said. “I was so happy.”Hours after we asked, her money was restored, the full $607.84.”I love 7 On Your Side,” she said. “I would recommend it 100 times over again…You guys are definitely my favorite news station.”RELATED | More victims of Bank of America, Zelle scams come forwardPrivacy rules prohibited Bank of America from discussing the case, but the big takeaway is a warning to never transfer money or provide personal information as a result of an unsolicited call, text, or email.Band of America says they’ll never ask a customer to do it.If you feel you’ve been scammed, contact your bank and start a fraud investigation.But the most important part is to get a police report and submit it to your bank as part of the investigation.Zyhajlo did not, but you’ll have a much better chance of getting your money back if you get and provide one.Bank of America sent us the following statement:In cases like this, scammers may spoof legitimate phone numbers and impersonate legitimate businesses and attempt to convince individuals to provide their personal information. We remind clients that…
Zelle Scam: Bank of America won't say why it gave refunds to …
Bank of America won’t say why it gave refunds to some Zelle scam victims but not othersSAN FRANCISCO — A widespread scam is targeting Bank of America and Zelle customers. Imposters claiming to be from the bank tricking consumers into sending them money through Zelle.It’s kind of a Wild West when it comes to payment apps like Zelle. Your money gets transferred instantly, it’s non-reversible and mostly unregulated. For some, it means the bank gets to decide who gets a refund and who doesn’t.RELATED: Banks tell customers they’re responsible if they pay Zelle scammers”I got a text message saying, ‘Did I authorize a Zelle transaction…'” said Donna Stoker of Cartersville, Georgia.”I said, ‘I didn’t authorize a $3,500 transaction,'” Page Pollack of San Francisco said.”So I fell for it right away, I got freaked out,” said Claudia Rivera of San Jose.They all were victims of the Zelle scam that has spread across the country.VIDEO: Bank of America gives refunds to some victims of growing Zelle scamImposters claiming to be from Bank of America tell victims someone is draining their accounts.”He could help me out to get those funds back,” Rivera said.”He started giving me instructions…” said Deborah Lagutaris of Oakland.”He said OK, we’re gonna get that $3,500 back,” echoed Pollack.”You’re gonna go to Zelle and you’re gonna send it to yourself,” said Crystal Vaka of Antioch.RELATED: Victim of the Bank of America, Zelle scam? Here are your rightsThe imposters tell victims to quickly use Zelle to send the money back to themselves.In reality, they’re sending the money straight to the scammers.”I looked in my account and it was gone, just like that,” Pollack said.”It was probably one of the worst weeks of my life,” said Lagutaris.Each filed a claim with Bank of America — and each was denied. The bank said victims had authorized the payments, so they were responsible for the loss.VIDEO: School nurse falls victim to scam targeting Bank of America and Zelle customersAnd Zelle offers no protections.”I called Bank of America, I said, ‘This is wrong,'” said Lagutaris.”So you’re gonna tell me you’re not gonna insure this?” Stoker had asked the bank.However, our sister station KGO-TV pointed out that scammers had tricked these customers into transferring their money.And without saying why, Bank of America reversed itself, and refunded money to all of these victims.”‘You mean I get the money back?’ She said yes!” Pollack recounted.”I can’t tell you how happy I am,” said Rivera.”Thanks to you we will all be OK,” said Vaka.RELATED: More victims of Bank of America, Zelle scams come forward; here’s how to protect yourselfNow comes Winnie Ng of San Carlos. She also got a call from a B of A imposter claiming someone was draining her account, persuading her to transfer $1,000 through Zelle.Now her money’s gone too.But B of A denied her claim — and stuck to that decision.Now Ng says, why is her claim different?”I’m so lost to where, how do they decide that my case should be denied?” Ng asked. “I feel I’m at the mercy of the person who’s analyzing my case.”Consumer advocate Bob Sullivan says there are no clear regulations for payment apps, while scammers are exploiting them more. “It’ll probably take banking regulators years to catch up with what’s going on with Zelle,” he said.A federal law known as “Regulation E” protects victims of fraudulent money transfers.VIDEO: San Francisco man loses half his savings in bank transfer scamThe Consumer Financial Protection Bureau said that includes those who are tricked into giving access to their accounts.But that interpretation is not written into law, which leaves banks acting on their own.”My money was really taken from my bank account via Zelle. It was from a phone call from a scammer,” Ng said. “Why are they discriminating my case?”B of A told Ng it denied her claim because she authorized the Zelle transfer.But so did the other victims, who did get refunds.”Just giving me the runaround, thinking I will accept their reasons for it. But it is just so…
Victim of the Bank of America, Zelle scam? Here are your rights
Victim of the Bank of America, Zelle scam? Here are your rightsSAN FRANCISCO — A growing scam targeting Zelle and Bank of America shows how easy it is for hackers to steal your money using those quick payment apps, like Zelle.Imposters claiming to be from the bank are tricking victims into sending them cash through Zelle.RELATED: More victims of Bank of America, Zelle scams come forward; here’s how to protect yourselfSo are you entitled to a refund if it happens to you? Our sister station KGO-TV’s investigative reporter Michael Finney has a surprising but hopeful answer.Quick-pay apps like Zelle don’t offer any of the fraud protections you get with credit cards. The Zelle user agreement says if you send someone money and it turns out to be a scammer, too bad. There are no refunds. However, with this latest scam, a little-known federal law says you should get your money back.Reports of the scam are spreading fast. Imposters claiming to be from Bank of America call random victims, saying someone is trying to hack their accounts.”The Bank of America identification came up on my phone,” said David Barnett of San Francisco.”I thought, ‘Oh my gosh I didn’t authorize a $3,500 transfer through Zelle,” said Page Pollack, also of San Francisco.”And within 15 seconds, my phone rang,” said Donna Stoker of Cartersville, Georgia. “He said, ‘Whoop, they just tried to get $3,500.'”VIDEO: Bank of America gives refunds to some victims of growing Zelle scam”So I fell for it right away; I got freaked out,” said Claudia Rivera of San Jose.The imposters urge them to quickly transfer their money through Zelle “before hackers can get it.””First, what I need you to do is open the Bank of America app, go to the Zelle,” Stoker said, repeating the scammer’s instructions.”You’re going to go to Zelle and send it to yourself,” Crystal Vaka of Antioch said she was told.”He took me through the steps of transferring a large sum of money from my Bank of America account,” said Barnett.The imposters claim the money will go back to the customer. Actually, it’s going right to the scammers.”I looked at my account and $3,500 was gone,” said Pollack.VIDEO: School nurse falls victim to scam targeting Bank of America and Zelle customers”Here I was being told I was defrauded by a man who was defrauding me,” said Barnett.In each case, Bank of America denied their claims for a refund, saying the victims were the ones who authorized the transactions.The Zelle user agreement on the Bank of America website says: “neither we nor Zelle offer protection for authorized payments… for example, if you do not receive the goods you paid for…”And even though it was a scam, the victims ‘did’ authorize a payment for goods they didn’t get – namely, their own money back!”It was a real eye-opener… I trusted my bank to have top-of-the-line security,” said Vaka.”So you’re gonna tell me you’re not going to insure this money? And they said, ‘No because you used it through Zelle,'” said Stoker.”Sorry you’re out of luck, lady,” Pollack recalled being told.RELATED: Scam targeting Bank of America, Zelle users steals thousands through mobile app payment”I’m sorry ma’am, there’s nothing we can do,” Vaka echoed.However, cyber security expert and journalist Bob Sullivan says federal law does protect victims of this type of scam. “It’s always the advice that, sorry, there’s nothing we can do.””Those kinds of…
Fraud Is Flourishing on Zelle. The Banks Say It's Not Their …
Fraud Is Flourishing on Zelle. The Banks Say It’s Not Their Problem.Credit…Daniel ZenderZelle, the payments platform used by millions of customers, is a popular target of scammers. But banks have been reluctant to make fraud victims whole — despite owning the system.Credit…Daniel ZenderJustin Faunce lost $500 to a scammer impersonating a Wells Fargo official in January and hoped that the bank would reimburse him. Mr. Faunce was a longtime Wells Fargo customer and had immediately reported the scam — involving Zelle, the popular money transfer app.But Wells Fargo said the transaction wasn’t fraudulent because Mr. Faunce had authorized it — even though he had been tricked into transferring the money.Mr. Faunce was shocked. “It was clearly fraud,” he said. “This wasn’t my fault, so why isn’t the bank doing the right thing here?”Consumers love payment apps like Zelle because they’re free, fast and convenient. Created in 2017 by America’s largest banks to enable instant digital money transfers, Zelle comes embedded in banking apps and is now by far the country’s most widely used money transfer service. Last year, people sent $490 billion through Zelle, compared with $230 billion through Venmo, its closest rival.Zelle’s immediacy has also made it a favorite of fraudsters. Other types of bank transfers or transactions involving payment cards typically take at least a day to clear. But once crooks scare or trick victims into handing over money via Zelle, they can siphon away thousands of dollars in seconds. There’s no way for customers — and in many cases, the banks themselves — to retrieve the money.Nearly 18 million Americans were defrauded through scams involving digital wallets and person-to-person payment apps in 2020, according to Javelin Strategy & Research, an industry consultant. “Organized crime is rampant,” said John Buzzard, Javelin’s lead fraud analyst. “A couple years ago, we were just starting to talk about it” on apps like Zelle and Venmo, Mr. Buzzard said. “Now, it’s common and everywhere.”The banks are aware of the widespread fraud on Zelle. When Mr. Faunce called Wells Fargo to report the crime, the customer service representative told him, “A lot of people are getting scammed on Zelle this way.” Getting ripped off for $500 was “actually really good,” Mr. Faunce said the rep told him, because “many people were getting hit for thousands of dollars.”ImageCredit…Carlos Bernate for The New York TimesWells Fargo later sent him a note saying it did not consider his loss to be a fraudulent one.It’s not clear who is legally liable for such losses. Banks say that returning money to defrauded customers is not their responsibility, since the federal law covering electronic transfers — known in the industry as Regulation E — requires them to cover only “unauthorized” transactions, and the fairly common scam that Mr. Faunce fell prey to tricks people into making the transfers themselves. Victims say because they were duped into sending the money, the transaction is unauthorized. Regulatory guidance has so far been murky.When swindled customers, already upset to find themselves on the hook, search for other means of redress, many are enraged to find out that Zelle is owned and operated by banks.“It’s like the banks have colluded with the sleazebags on the street to be able to steal,” said Bruce Barth, another victim. In late 2020, Mr. Barth was hospitalized with Covid-19 and his phone disappeared from his hospital room. A thief got access to his digital wallet and ran up charges on his credit card, took out cash at an A.T.M. and used Zelle to make three transfers totaling…
Understanding Fraud & Scams | Zelle
Understanding Fraud & Scams | Zelle As a consumer, it’s important to understand how fraud and scams are defined because there may be differences in the consumer protections offered by your bank or credit union. A basic way to differentiate fraud and scams is unauthorized vs. authorized transactions. If someone gained access to your bank account and made a payment with Zelle® without your permission, and you weren’t involved in any way with the transaction, this is typically considered fraud since it was unauthorized activity. If someone gained access to your account, and stole money or sent it without your permission, this could be defined as fraud. Immediately report suspected unauthorized activity to your financial institution. Because you did NOT authorize a payment, you are typically able to get your money back after reporting the incident. SCAM If you were knowingly involved in the transaction and you gave the “ok” and authorized a payment to be sent, this is typically defined as a scam. Even if you were tricked or persuaded into authorizing a payment for a good or service someone said they were going to provide, but they didn’t fulfill it, this would be considered a scam. Because you authorized the payment, you may not be able to get your money back. A few types of scams reported involve purchasing tickets, buying puppies and other financial scams like cash flips. Get more examples of scams. Contact Your Financial Institution for Possible Recourse Contact your bank or credit union immediately if you feel you’ve been the victim of fraud or have been scammed. In cases of unauthorized payments, consumers have legal rights and protections under the Electronic Funds Transfer Act (also known as “Reg E”). It’s important to read the user service agreement and the account agreement with your financial institution to understand the terms of any payment service you intend to use. Discover more resources and tips to help protect your money. Pay it Safe Unfortunately, scammers and fraudsters use times of crisis as an opportunity to take advantage of people. Check out these resources to help you avoid COVID-19 related fraud and scams: Protecting your finances during the Coronavirus Pandemic – CFPBBeware of scams related to the coronavirus – CFPBCoronavirus (COVID-19) Pandemic: The FTC in Action – FTCScammers are taking advantage of fears surrounding the Coronavirus – FTCNow more than ever, spot the scams with #FTCScamBingo – FTCScam Spotter – Cybercrime Support Network & GoogleHow to Stay Safe From Online Banking Scams – AARPHow to protect yourself from cybercrime on vacation – Zelle® & Cybercrime Support Network
After scammers used Zelle to steal thousands, Massachusetts …
After scammers used Zelle to steal thousands, Massachusetts man’s bank wouldn’t help Every day more than a billion dollars moves through Zelle, a money payment app that is found embedded in nearly every bank account in this country. And scammers have taken notice at how easy Zelle makes it to send and receive money.Despite federal rules requiring banks to refund unauthorized transactions, one man turned to NewsCenter 5 for help when his bank kept passing the buck.In just seconds, nearly $3,000 disappeared last month – unauthorized – from Frank Campanale’s account at Bank of America.”I see in rapid succession these three withdrawals coming out of my bank account,” he said. “Bang, bang, bang, this happened to me.”At the time, Campanale had unwittingly given scammers remote access to his phone. They quickly used Zelle, a money transfer service built into his Bank of America app to steal from his account.Campanale says he tried to stop it. After each transfer, the bank sent a confirmation text. Screenshots from Frank’s text messages show he’s trying to type “no” while the scammers are typing “yes.” Unfortunately, they were too quick and successfully made off with $999, $998 and $899 – a total of $2,896.Campanale immediately called Bank of America and filed a report with Harwich Police but says the bank told him Zelle transfers are like cash: once the money is gone, it’s gone.Bank of America said it needed 45 days to investigate, then denied Campanale’s claim saying “we completed the Zelle transfer(s) according to the instructions you provided us, and therefore no error occurred.” In a second denial letter, the bank suggested that Campanale “contact the person he sent the funds to” – totally disregarding that he was scammed and the money stolen.”Just the experience of being victimized this way and then being powerless to do anything about it is just so infuriating,” Campanale said. “They know that has been used for scamming for a while now.”A 1978 federal regulation known as Regulation E requires banks to reimburse customers for unauthorized electronic transactions, as long as the customer provides timely notice. Last year, the Consumer Financial Protection Bureau determined that rule applies to payment apps like Zelle. But plenty of other customers say they’ve filed appeals with their banks and received the same vague denials.”It’s just not right,” said Senator Elizabeth Warren (D, Massachusetts). She’s become an outspoken critic of the massive amount of fraud she says Zelle has enabled, thanks in part to banks building the platform directly into their apps. “The banks are the ones who put it in there. The banks are the ones who are profiting off it. And now the banks want to say when things go wrong, ‘Oh it wasn’t us. Talk to the hand.’?” she said. “No.”Senator Warren sent a letter this spring raising a number of questions to Zelle’s parent company, Early Warning Services, LLC, which is co-owned by seven of the nation’s largest banks including Bank of America. In response, Sen. Warren says she learned $440 million…