In 2023, 120 million consumers and small businesses relied on Zelle^® for basic money transfers. Additionally, Zelle^® handled nearly three billion transactions worth over $800 billion. Despite its widespread use, less than a tenth of a percent of all transactions (three million, to be exact) were reported as frauds or scams. 

With its growing popularity, Zelle^® has unfortunately become a target for hackers and bad agents seeking to scam victims out of their hard-earned cash. That’s why it’s especially important for you to be able to recognize the signs of Zelle^® fraud. The following tips can help you identify Zelle^® scams and stay safe while sending and receiving money through the platform. 

10 most common ways scammers use Zelle^®.

Scammers using Zelle^® to commit fraud often rely on what’s known as social engineering, where they build a false sense of trust with their intended victims to exploit them for information. With Zelle^®, this manipulation involves asking someone to send money to a fake account for a quick payout, typically through the following scenarios.

1. Account access

Attempts to access your Zelle^® account can come through emails, phone calls, text messages, or even social media. Most bad actors initiate these imposter scams by impersonating trusted institutions, such as your bank or even Zelle^®. Often, the tone of these communications preys upon a sense of urgency based on implied trust.

Although the requests for access to your login credentials may seem harmless, you could literally be handing fraudsters the key to your sensitive personal information. Gaining direct access to your Zelle^® account puts scammers in the driver’s seat, allowing them plenty of time to change your password and take over your account.  

Remember that Popular Bank will never ask you for your password or other personal or account identifying information through email, social media, or a third-party website. If you think you’ve been the victim of a scam, please call our Customer Care Center at 1-800-377-0800.

2. Charitable causes

Be extra diligent when using Zelle^® to make charitable contributions. Contributing financial aid to a cause, especially during a time of crisis or natural disaster, can put you at risk of unwittingly funding a shady operation instead. Zelle^® scammers may pose as representatives of legitimate or non-existent charities, so be cautious where you send your donations. 

3. Event passes

Be wary of last-minute deals on tickets to your favorite band or sporting event. This can be prime territory for Zelle^® fraudsters to trick you into paying them for tickets and taking your money instead. In many ways, it’s the virtual equivalent of scalping practices, except that no valid tickets ever exchange hands. While taking advantage of last-minute deals on these event passes may be tempting, it’s always a good idea to purchase tickets only from reputable sources. 

4. Facebook Marketplace listings

Zelle^® provides customers a convenient payment method for platforms like Facebook Marketplace. However, fake listings created by scammers leave victims empty-handed. 

Fraudulent Facebook Marketplace listings can range from fake items that cost less than $100 to rental properties that may not even be available. Fraudsters can even advertise services that victims never receive after putting down what they believe is a deposit or advance fee. As convenient as Zelle^® can be to pay for goods and services, it’s critical to do your due diligence and trust your instincts. Using Popular Bank’s mobile wallet can be a great alternative as it allows you to use a virtual card to protect your details.

5. Impersonation

Scams of all shapes and sizes often incorporate impersonation tactics to part victims from their personal assets. With Zelle^®, bad actors will try to convince Zelle^® users to send money based on an implied connection, such as a close relative, friend, or authority figure.

For example, Zelle^® scammers may pose as grandchildren reaching out to grandparents who live a few states away, claiming they need immediate financial help. A few carefully worded phrases relaying trouble and the urgent need for money are sometimes all it takes for these scams to succeed. 

6. Investments

Exercise caution if anyone pressures you to make an immediate investment using Zelle^®. Scammers may reach out via email, social media, phone call, or another platform with fake investment opportunities that could range from stocks, real estate, cryptocurrencies, or other unconventional investment opportunities.

They may claim that immediate payment via Zelle^® is necessary to secure a position in the investment, guarantee a specific return rate, or take advantage of a limited-time opportunity. The psychology of these scams plays upon the desire to get rich quickly without much effort. As the saying goes, if it’s too good to be true, it probably is. 

7. Job listings

With the rise of remote work and many Americans’ desires to maintain a work-life balance that fits their lifestyle, the number of fraudulent job listings has equally skyrocketed. Any job listing requiring you to pay something, regardless of whether you’re asked to use Zelle^®, should be an immediate red flag. However, many Zelle^® scams involving job listings can be more sophisticated than that. 

For example, a scammer posing as an employer may offer you the job but require you to complete a training course. They then will request payment via Zelle^® (or any other payment method) for that training course under the guise of an implied reimbursement arrangement. However, it’s quickly revealed that you were swindled when the employer suddenly breaks contact after taking your money. 

8. Prizes or lottery winnings

Scammers have been using fake promises of prizes or lottery winnings for quite some time, but more recently, Zelle^® has become the primary vehicle for this type of scam. Bad actors begin by contacting “winners,” claiming they’ve won a sizable amount of money. As contestants answer several questions to claim their prize money, they unknowingly provide sensitive information but walk away without a single penny. 

9. Rental listings

Fake rental listings that require a deposit through Zelle^® aren’t isolated to Facebook Marketplace. Scammers use fake or even real addresses to post fraudulent rental listings all over the internet, enticing renters looking for affordable housing. Before sending any money over Zelle^®, it’s a good idea to first research the available property to verify whether the rental listing is real or fake.

10. Relationships 

The prevalence of social media presents a myriad of opportunities for individuals seeking a relationship to make connections, but not all of them may be well-intentioned. Scammers often use romantic tactics to get close to victims and gain their trust, before eventually asking for money through Zelle^®. Scammers may even go so far as to create fake dating profiles to fish for victims on popular dating sites.

Zelle^® fraud protection tips.

Educating yourself about common Zelle^® scams can help you to keep your personal and financial data away from scammers. The tips below can guide you in identifying scams not only on Zelle^® but also in other areas of your life: 

• Disregard unsolicited requests for money unless you verify the recipient. 
• Be cautious of urgent payment requests that stress an impending deadline.
• Avoid applying for job listings that require any form of payment.
• Report suspicious activity to the Federal Trade Commission, and never share personal or sensitive information.
• Regularly check your credit report and bank statements for fraudulent entries. 
• Set up two-factor or multi-factor authentication on your Zelle^® account. 
• Use scam detectors like Scamio to protect yourself against online threats. 

If you’re unsure about a request for money, talk to a close friend or loved one. In addition, doing even a few minutes of research online can also save you the heartache associated with falling victim to Zelle® scams. 

Protect yourself from getting scammed on Zelle^®.

As technologies like Zelle^® become more popular, they can unfortunately become the preferred method for scammers. Guard yourself against Zelle^® fraud using the methods discussed above to ensure your transactions are legitimate and safe. Contact our Customer Care Center immediately at 1-800-377-0800 if you think you have been a victim of a Zelle^® scam. Learn more about how Popular Bank works to assure your online security.