Think twice about using Zelle to send money to people you’ve never met.
Zelle is a popular person-to-person payment service used by hundreds of credit unions and major banks. It works similar to many payment apps — you log into your bank or credit union account and send money by entering the recipient’s phone number or email address.
Zelle is a safe, secure way to send money, but as with anything that is widely used, scammers have latched onto the tech and are targeting consumers. Here’s what you should know.
The Scam
The person-to-person payment app scam starts via a phone call, text or email that appears to be from your credit union or bank. The message will claim that your credit union or bank is simply trying to confirm a Zelle transfer you created.
When you reply to the message disputing the bogus transfer, you’ll be directed to make a separate Zelle transfer that will return the funds back to your account. That’s where the scammers get you. The transfer will in fact send money into the scammer’s account, and because it’s authorized by you, it’s tough to get it corrected.
The Protection
Banks and credit unions typically don’t offer refunds on authorized transfers, so your best defense against this scam is a good offense. That means being extra cautious every time you use Zelle is recommended. Never transfer funds to someone you don’t know. If you get a call or text asking you to verify a Zelle transfer, don’t reply to that message. Instead, call your credit union or bank on your own.
Another way to protect yourself with Zelle is to transfer $1 first, then verify that transaction with the recipient. If it goes through, then you can send the rest of the money. These extra steps with Zelle can save you plenty of headaches.
To access Zelle use the SDFCU App or Log In to Online Banking.
Read Frequently Asked Questions and learn more about Zelle.
