Zelle business account scams are on the rise swiftly and are expected to reach unfathomable numbers by 2026, according to Statista. If you landed on this page because you experienced a Zelle business account scam or if you are looking to do a purchase with Zelle, you’ve come to the right place.
According to our forecast, nearly three-quarters of US smartphone users will send money over P2P payment apps by 2028. Attracting Gen Z and Gen Alpha will be critical for apps to keep growing in such a saturated market. E-marketer.
When it comes to Zelle scams/fraud, users should always report any suspicious activity to Zelle immediately. Let’s take a look at the most common Zelle account scams and what you need to avoid as a user in 2024.
Key Takeaways on Zelle Business Account Scams
- Zelle business scams are rapidly increasing, with growth expected by 2026.
- Urgent payment requests from unknown sources are often fraudulent.
- Common scams include rental fraud, job offer scams, fake charities, impostor scams, and online marketplace fraud.
- Always verify transactions and report suspicious activity to Zelle.
- Enable two-factor authentication for better security.
- Recovering funds from Zelle scams can be difficult, as payments are usually non-refundable.
- Consider using a reliable payment processor like Corepay for enhanced transaction security and fraud prevention tools.
Is It Possible To Get Scammed On Zelle?
“When it comes to making safe purchases, remember to slow down and ask questions.” This quote was taken from Zelle’s article on Zelle business account scams. It is very possible to get scammed on Zelle, and unfortunately, it happens every day.
P2P platforms have made it convenient to make everyday purchases easier while, at the same time, opening the door to fraudsters more than ever.
Why Do Zelle Business Account Scams Exist?
Zelle business scams happen because the service lets people send money instantly, and once it’s sent, it’s usually gone for good. Many users love how quick and easy Zelle is, but this can lead to problems if they’re not careful about who they’re sending money to. Scammers often pretend to be real businesses or trustworthy contacts, urging people to pay quickly.
Zelle doesn’t offer much protection against fraud, so getting money back is tough if you send money to a scammer. This makes it easy for scams to happen, especially if users aren’t on guard.
What is a Zelle Business Scam?
Zelle business scams occur when scammers exploit the Zelle payment platform to trick individuals and businesses into sending money under false pretenses. These scams often involve impersonation or deceptive offers, leading victims to believe they are making legitimate transactions.
Rental Scams
A person looking for a new apartment found a listing online that seemed too good to be true. The “landlord” asked for a deposit via Zelle to secure the rental before a showing. Trusting the deal, the individual sent the money. Afterward, they realized the listing was fake, and the landlord had disappeared, leaving them without their deposit and a place to stay.
Job Offer Scam
An applicant received a job offer from a company claiming to be hiring remotely. The employer asked for a “training fee” to be paid via Zelle before starting work. After sending the payment, the applicant never received any training materials or further communication, realizing they had fallen for a scam.
Fake Charity Scam
During a disaster relief effort, a scammer posed as a charity organization soliciting donations through Zelle. Many individuals, wanting to help, sent money without verifying the charity’s legitimacy. Later, they found out the organization was a front, and their donations went straight into the scammer’s pocket, leaving the real cause unsupported.
Impostor Scam
If someone used their Zelle account to send money to an impostor, they might have encountered a typical scam. In this case, the victim received a message from someone pretending to be a trusted contact, asking for money urgently. After sending the funds via Zelle, the victim realized they had been tricked when the real contact reached out to clarify the situation.
Online Marketplace Scam
In an online marketplace, a seller received an inquiry about a high-demand item. The buyer claimed they had trouble using the payment app and insisted on sending money via Zelle. After the seller accepted, they never received the payment and later found out the buyer had used a fake profile to facilitate the scam.
Most Common Zelle Scams To Watch Out For
Below are the top Zelle scams we have seen in 2024.
Zelle Phishing Via “Please Update Your Account
In certain online marketplace scams, you might get an email that looks like it’s from Zelle®, stating that you need to send money to “upgrade” your account and access a pending payment. Keep in mind that there are NO account upgrades available! If you encounter an email that seems fraudulent and impersonates Zelle®, avoid clicking any links and report it as suspicious to your email provider.
The only official domain extensions used by Zelle® are @Zelle.com and @Zellepay.com. Zelle® does not utilize email addresses from domains like @gmail.com, @aol.com, or @yahoo.com. Just because an email has a Zelle® logo doesn’tguarantee its authenticity. To confirm the domain of the sender, you may need to expand the “To” and “From” fields in your email. Depending on your email service, this might be indicated by an arrow, an ellipsis, or another icon. If you’reunsure how to access the complete email address details, consult your email provider for guidance.
Scams Targeting Entrepreneurs
Whether you’re looking to grow your existing business, purchase a new venture, launch a startup, or enroll in a business training program, there are numerous Zelle scams aimed at entrepreneurs. These fraudsters often present enticing offers, claiming to provide life-changing opportunities with minimal investment and substantial returns.
For instance, some online coaching programs promote themselves as experts with foolproof strategies to help you build a six-figure online business without prior experience. They might promise that participants can expect returns of 50% to 100% within the first year, making it sound too good to be true.
Typically, these schemes require you to pay for their programs or startup kits upfront. After you make the payment, the scammer vanishes, leaving you without any business opportunity.
Tips for Avoiding Business Opportunity Scams
To steer clear of fraudulent business offers:
- Conduct thorough research on the company.
- Read reviews and consider contacting them directly through a phone or video call to discuss the opportunity.
- Ask specific questions to receive straightforward answers. If they insist that you don’t need to know the details, it’s likely a scam.
Here are some key questions to consider:
- What products or services will I be offering?
- What are the expected costs associated with this venture?
- How will this business make money, and what is the payment process?
- What is the timeline for when I can expect to turn a profit?
- How will potential customers find my website?
- If it’s a coaching program, what are the qualifications of the instructor?
- What support will I receive after joining this program or opportunity?
Be cautious of anyone pressuring you to make quick decisions, and keep your Zelle or bank account information private from unknown parties during the sign-up process.
Overpayment Scams Targeting Sellers
Be cautious if you encounter clients who mistakenly overpay or send unsolicited payments. This can also occur with personal payments from unfamiliar individuals.
In an overpayment scam, the fraudster typically uses a stolen credit card to transfer funds into your account or sends you a counterfeit check for an excessive amount. They then reach out, claiming they accidentally sent too much and request that you refund the difference via Zelle.
Zelle’s quick transfer feature makes it easy to send money back, but it lacks chargeback protection, meaning that once you refund the amount, the scammer vanishes, leaving you and the original victim in a tough situation.
Handling Overpayment Scams on Zelle
Unfortunately, resolving overpayment scams through Zelle can be complicated. If you suspect a scam, do not send the money back. This may upset your client, but their best recourse is to dispute the charge through their bank or the Consumer Financial Protection Bureau (CFPB). Both processes can take time to resolve.
If a bank determines the transaction was fraudulent, they will initiate an automatic chargeback for the customer.
Impersonation Scams Disguised as Trusted Contacts
Phishing and impersonation scams remain prevalent and are a common tactic used by fraudsters. Gaining access to your Zelle account can provide scammers with immediate access to your bank funds.
These scams may involve SMS phishing (smishing), deceptive emails, or even phone calls from individuals posing as bank representatives. A fraudulent message might inform you of suspicious activity on your Zelle account and threaten to suspend it until you confirm your identity.
You could be prompted to log in via a link in the message or asked to provide personal information like your account number, Social Security Number, or PIN. By acquiring this sensitive data, scammers can swiftly access your funds.
How To Avoid A Zelle Scam
To avoid Zelle account scams, follow these essential tips:
- Be Cautious with Requests: Always question urgent payment requests from unknown individuals or businesses. If something feels off, verify the request through a separate communication channel.
- Enable Two-Factor Authentication: Activate two-factor authentication for an added layer of security. This helps protect your account even if your password is compromised.
- Keep Personal Information Private: Never share your password, PIN, or any sensitive information, even if someone claims to be from Zelle or your bank.
- Regularly Monitor Your Accounts: Monitor your bank and Zelle account activity. Report any suspicious transactions to your bank immediately.
- Stay Updated: Ensure your devices and apps are always updated with the latest security patches. This helps protect against vulnerabilities.
- Be Wary of Phishing Attempts: Be cautious of emails, texts, or calls requesting sensitive information or asking you to click links. Always verify the source before responding.
How To Make Sure Your Zelle Account Is Highly Secure
Although the risk of encountering Zelle business account scams is real, there’s no need to abandoning the platform altogether. Instead, taking proactive measures can enhance your security. Always approach urgent payment requests from unfamiliar individuals or businesses with caution; refrain from engaging directly and instead reach out to your bank to check your account activity. Enabling two-factor authentication adds an extra layer of protection. It’s crucial to never share your password or two-factor authentication PIN, even with those who claim to represent your bank or Zelle.Additionally, keeping your devices and applications up to date is essential. Regularly install the latest security updates for Zelle to safeguard against potential vulnerabilities. These steps can help ensure a safer experience while using the service.
Can I Get My Money Back After A Zelle Scam?
While Zelle payments are typically non-refundable, there is a way to follow the steps from Zelle here.
Looking To Avoid Fraud? Work With A Reliable Payment Processor Such As Corepay
When managing a business, you shouldn’t have to worry about every payment coming in or going out. While being cautious is important, relying solely on that approach can hinder your growth.
Instead, look for a payment processor like Corepay that prioritizes security while enhancing the customer experience. This not only protects your interests but also instills trust in your clients. Different business models—especially high-risk ones—have specific needs that must be addressed.
At Corepay, we focus on robust fraud prevention and offer a range of complimentary security features to protect your merchant account, including:
- Intelligent fraud detection algorithms
- Comprehensive customer data monitoring
- Reliable address verification
- Customizable volume and threshold settings
- Real-time fraud alerts
With Corepay, you can focus on growing your business while we handle the security.
