Zelle has made sending money as easy as sending a text. But that convenience comes with rising scam risks.
Read More: 4 Top Ways To Spot and Avoid a Scam, According to an Expert
Check Out: 9 Low-Effort Ways To Make Passive Income (You Can Start This Week)
In 2024, Zelle processed more than $1 trillion in payments, according to Early Warning Services, a 24% increase from the previous year. Analysts at Point Predictive estimate scam and fraud exposure is about $725 million annually, and during a congressional hearing consumer advocate John Breyault warned that total fraud rates on Zelle could exceed $1 billion annually by next year, as reported by Payments Dive.
With scams on the rise, here are some of the most common schemes to watch out for — and how to protect yourself.
The Most Common Zelle Scams
“Once the money is sent, it is nearly irreversible … There [are] very few fraud checks. All-in-all, Zelle is ripe for fraud and abuse,” said Roger Grimes, Chief Information Security Officer at KnowBe4.
According to the Federal Trade Commission (FTC) and major U.S. banks’ fraud alerts, some of the most common scams involving Zelle include impersonation schemes, fake alerts, marketplace scams, romance scams, utility payment scams and fraudulent investment offers.
Discover More: 30 Scam Phone Numbers To Block and Area Codes To Avoid
Impersonation scams
Scammers pose as your bank, employer or a government agency and pressure you to “secure” your account by sending money through Zelle. They often spoof real numbers or use official-sounding language to appear legitimate.
Fake bank alerts
Fraudsters send texts or make calls claiming suspicious activity on your account. Victims are told to “verify” or “return” funds, which really means sending money to the scammer. These messages can look identical to real bank fraud alerts.
Marketplace scams
Fake buyers or sellers on Facebook Marketplace or Craigslist pressure victims to pay through Zelle, claiming it’s fast or secure. Common tricks include fake payment confirmations or refund requests. Banks like Wells Fargo have issued warnings about this tactic, saying that Zelle offers no purchase protection.
Romance scams
Scammers build fake online relationships and use emotional pressure to convince victims to send money. “One of the most common scams is romance scams, where the victim is tricked by someone they have a romantic interest in,” said Grimes. The FTC says romance scams are among the most financially devastating.
Utility and bill payment scams
Victims receive fake past-due notices for utilities or services and are pressured to pay immediately to “avoid shutoff.” Banks including Bank of America and Wells Fargo have flagged this as a common Zelle scam tactic, saying customers to verify bills through official channels.
How to Protect Yourself
If something feels rushed or off, stop and verify it through official channels and not replying to the suspicious text, email or call.
Red flags to watch for:
- Messages with a false sense of urgency
- Requests for personal information (passwords, passcodes, social security numbers or payment details)
- Instructions to “pay yourself” or send money to verify your account
- Notifications coming from outside the payment app
- Emails or texts with suspicious links or odd grammar
- Payment requests from someone claiming to be a bank, utility company, or government agency
Practical steps to protect your account:
- Enable two-factor authentication on your payment apps and banking platforms.
- Only send money to people you know and trust.
- Never respond directly to external messages about “payment processing issues.” Always contact your bank or payment app using the number in the app or on the back of your card to verify.
- If something seems suspicious, pause and verify first.
If you do fall victim to a scam, speed matters. Acting quickly gives you the best chance to recover lost funds.
“Once you realize you have been scammed on a payment app, immediately notify the platform through the customer service number found within the app and ask them to reverse the charge,” said Mandy Kelso, Head of Financial Education at TD Bank. “However, some charges cannot be reversed and the fraudsters know this. That is why it’s critical that you pause before hitting Send.”
Additionally, if you’ve linked a credit or debit card or bank account to the app, report the fraud to your card issuer or bank right away. You can also file a police report and contact the Federal Trade Commission and Consumer Financial Protection Bureau. Acting fast gives you the best chance of limiting or recovering losses.
More From GOBankingRates
- Nearly 1 in 3 Americans Hit by a Costly Holiday Scam, Norton Survey Shows -- How To Avoid This
- Here's What the Average Social Security Payment Will Be in Winter 2025
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and How You Can, Too
- The Easiest Way to Score $250 for Things You Already Do
This article originally appeared on GOBankingRates.com: Protect Yourself From These 5 Zelle Scams in 2026
