![]() Bottom line, don't answer a text or call even if it seems to be your bank. When victims open their mobile banking app, Zelle is right there, connected to their money. It's even more annoying when consumers find $2,000 is missing," said Sullivan.Ĭonsumer advocates say scammers are exploiting Zelle because the app is connected automatically to millions of bank accounts. "Any speed bump in the process is going to annoy customers, that's true. RELATED: Judge says Bank of America may have illegally denied EDD fraud claims Sullivan and other consumer advocates say banks should be using fraud filters on Zelle transactions to stop scams - as they do with credit cards.īut that could slow the quick payments that customers want. Sullivan warns, however, the law does not protect consumers when they use Zelle to make a purchase or payment - even if they get scammed.įor example, if you use Zelle to buy concert tickets, and never receive them, you are out of luck. VIDEO: San Francisco man loses half his savings in bank transfer scamīank of America did say it complies with Regulation E. We told Bank of America about all the victims - pointing out consumers were tricked into transferring their funds.Īnd right away the bank replaced their money but did not cite a reason, saying it considers each case individually. So the whole idea that treachery is involved should mean consumers are protected by Regulation E," said Sullivan. The Consumer Financial Protection Bureau put out a directive in June, saying the law applies "if a third party fraudulently induces a consumer into sharing account access information." Regulation E, part of the federal Electronic Fund Transfer Act, requires banks to refund consumers for fraudulent transactions on their accounts. "Those kinds of fraudulent transactions are covered by Regulation E, and consumers should be getting refunds," Sullivan said. "It's always the advice that, sorry, there's nothing we can do." However, cyber security expert and journalist Bob Sullivan says federal law does protect victims of this type of scam. "I'm sorry ma'am, there's nothing we can do," Vaka echoed. RELATED: Scam targeting Bank of America, Zelle users steals thousands through mobile app payment "Sorry you're out of luck, lady," Pollack recalled being told. "So you're gonna tell me you're not going to insure this money? And they said, 'No because you used it through Zelle,'" said Stoker. I trusted my bank to have top-of-the-line security," said Vaka. for example, if you do not receive the goods you paid for."Īnd even though it was a scam, the victims 'did' authorize a payment for goods they didn't get - namely, their own money back! The Zelle user agreement on the Bank of America website says: "neither we nor Zelle offer protection for authorized payments. However, with this latest scam, a little-known federal law says you should get your money back. The Zelle user agreement says if you send someone money and it turns out to be a scammer, too bad. Quick-pay apps like Zelle don't offer any of the fraud protections you get with credit cards. So are you entitled to a refund if it happens to you? Our sister station KGO-TV's investigative reporter Michael Finney has a surprising but hopeful answer. RELATED: More victims of Bank of America, Zelle scams come forward here's how to protect yourself Imposters claiming to be from the bank are tricking victims into sending them cash through Zelle. SAN FRANCISCO - A growing scam targeting Zelle and Bank of America shows how easy it is for hackers to steal your money using those quick payment apps, like Zelle. A growing scam targeting Zelle and Bank of America shows how easy it is for hackers to steal your money using those quick payment apps, like Zelle.
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