Zelle scams: how they work and if you can get your money back

Why Zelle works like cash

With Zelle, money goes directly into the recipient's bank account. Unlike a credit card, Zelle says it does not offer a protection program for payments you authorize, so once you approve one, the money is often gone.

Zelle's own advice is to send money only to someone you know, trust and can confirm is who they say they are. That rules out most strangers from Marketplace, rental ads and dating apps.

The fake fraud department call

It starts with a text that looks like a fraud alert from your bank, then a call from someone who says they are on the fraud team. They ask for the one-time code your bank just sent, “to cancel the payment”, then tell you to send money to yourself or to a “safe” account. The code lets them link their own account to your phone number or email, so the money goes to them.

The FTC's rule of thumb: never move money to protect it, never share a verification code, and call your bank on the number from your card or statement.

The “upgrade to a business account” email

This one targets people buying and selling online. You get an email that looks like it is from Zelle saying the payment is held until you upgrade to a business account. The buyer offers to cover the fee if you send it first, or sends a screenshot and asks for the extra back.

Zelle says no one can upgrade your account because there are no upgrades. A real payment lands in your bank's app, not in an email that asks you to act. More on this in Facebook Marketplace scams.

Can you get your money back from a Zelle scam

It depends on who sent the money. If someone else got into your account and sent it without your permission, that is an unauthorized transfer, your bank must investigate, and Zelle says these cases typically qualify for reimbursement.

The CFPB says that when a caller pretends to be your bank and tricks you into giving your login or a texted code, the transfers they then make count as unauthorized. Report it the same day if you can: under federal rules, waiting more than 60 days after the statement is sent can cost you protection.

If you pressed send yourself, the payment usually counts as authorized. Since June 2023, Zelle has required its banks to refund “certain qualifying imposter scams”, but it has not published the full criteria; NBC News reported they cover people tricked by someone posing as a bank, a government agency or a service provider. Paying for an item that never arrives is generally not covered.

If it already happened

1. Call your bank or credit union now, using the number on your card or in its app, and say clearly whether you sent the money or someone else did.
2. If someone else made the transfer, ask for an unauthorized transfer claim. If someone posed as your bank, Zelle or a government agency, ask whether it qualifies as an imposter scam.
3. Follow up in writing and keep the texts, phone numbers, emails and payment details.
4. If you shared a code or password, change your online banking password and sign out of other devices.
5. If your bank refuses and you think it is wrong, you can submit a complaint to the CFPB.

• ReportFraud.ftc.govReport the scam to the Federal Trade Commission.
• IC3.govThe FBI’s internet crime complaint center, for losses online.
• IdentityTheft.govIf they got your ID, Social Security number or account details.

Questions