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Fiascos and Fixes
The Consumer Rescue advocacy team receives nearly daily requests for help from Zelle users who have made costly mistakes with the app. Unfortunately, most of these errors are not reversible as Zelle transactions are instant, bank-to-bank transfers. We continue to warn consumers about the dangers of using cash apps. It is very easy to make a mistake during a Zelle transaction if a user is not paying attention and doesn’t understand the terms and conditions of the app. These articles here are cautionary tales for anyone who has a cash app installed on their phone or is considering adding one.
College student Shlome Goldenberg made a shockingly expensive but not at all uncommon, Zelle mistake recently. While attempting to repay a loan to a friend, he sent $2,500 to a complete stranger by accident. Worse, when he asked Chase Bank to refund the payment, he learned for the first time that voluntary Zelle transactions aren’t reversible.
Zelle users, beware: Scammers are aiming their sights right at you. It’s true – the money transfer service has quickly become the preferred method of thieves everywhere looking for instant cash. In fact, I receive daily pleas for help from bewildered victims of these Zelle scams.
Here are seven of the latest Zelle scams that you should know about in 2024.
All types of Zelle scams are reported to the Consumer Rescue advocacy team every week. Blindsided victims reach out to us, minutes too late – after they’ve sent their cash to cunning thieves through the instant money transfer app.
And although Zelle scams are a common theme with consumers who fill out our help form, it’s rare to hear from the thieves themselves. In fact, it’s unheard of.
That is, until this week. That’s when a criminal called me posing as a Bank of America executive. He tried his best to scam me into using Zelle to fix a problem he said the bank had detected.
What’s the safest thing to do if you receive an unexpected Zelle payment and then an angry stranger asks you to send it back?
That’s something Erin Scheithe wants to know. She recently received a surprising text that an unknown person had made a $925 Zelle payment to her. Soon after that, a panicked woman emailed pleading for the return of the misguided funds. But when Erin asked her bank for guidance, things really started going wrong.
Erin’s frustrating tale is one you’ll want to read if you have a cash app like Zelle or Venmo installed on your phone. Although these services can be a great way to send money to friends and family, they’re also a great way to lose a ton of cash. Here’s what you need to know to help you decide if a money transfer app is right for you.
Could you fall for a fake job scam?
If you’re like Sam Erin, you probably answered “no!” She’s a college-educated young adult who was sure she knew how to spot a con game. That is until a phony employment crime ring preyed on her naivety and stole nearly $9,000 from her.
Now, after draining her bank account, the scammers have vanished, leaving Erin jobless and cashless. She’s hoping our advocacy team can help. But how?
What if you sent $500 to the wrong person by mistake and that person refused to give back your money? That’s the shocking situation in which Rossin Asilo recently found herself.
Using the money transfer app Zelle for the first time, Asilo made a simple typo entering her friend’s phone number. That error dropped the cash intended for a memorial donation into the wrong person’s bank account. Unfortunately, that stranger appears to view the transaction as a $500 windfall and will not return the money.
Now Asilo is hoping that our advocacy team can find a way to get her money back. But that request might just prove to be an impossible task.
Falling for a vacation rental scam surely is not at the top of your list of things to do this summer. It certainly wasn’t in Don Boyk’s plans. But that’s exactly what happened when a thief disguised as a Vrbo host persuaded him to send a $500 deposit via Zelle.
His cash was soon in the hands of the scammer and Vrbo informed him the listing was fraudulent.
Now Don hopes we can find a way to save him from this vacation rental scam and retrieve his money.
But if a consumer uses Zelle to send cash to a stranger, is there any way to get it back?
Maria Witbrod wanted to add a new puppy to her family during the pandemic. But instead, a well-organized criminal operation led her into a costly and increasingly common pet scam.
$4,000 later, and with no dog to show for it, she’s asking if our advocacy team can help her.
But how?
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© 2024 Consumer Rescue / Michelle Couch-Friedman
