The banking payment service Zelle acts as a quick and easy way to send money or pay for purchases from private sellers, but its transactions are instant and irreversible -- making it an attractive target for scammers and thieves.
Every week brings new Zelle scam stories to light. In Massachusetts, a man accidentally gave scammers remote access to his phone and quickly lost $3,000. Facebook Marketplace has dominated Zelle scam stories lately, prompting a warning from the Better Business Bureau.
Because Zelle transactions require authorization from the account holder, victims of Zelle scams have had troubles receiving compensation from banks for their fraudulent losses. According to the Wall Street Journal, the Consumer Finance Protection Bureau is expected to change its regulatory guidance on Zelle, requiring banks to pay back victims of fraud, even if the transactions were "authorized."