Zelle Fraud

Zelle is a fast and easy way to send money directly between bank accounts. Many people use it for everyday transactions, but scammers have also found ways to exploit it.

Zelle is owned and operated by Early Warning Services, LLC (EWS), a company backed by some of the largest U.S. banks, including JPMorgan Chase, Bank of America, Wells Fargo, PNC, Capital One, U.S. Bank, and Truist. These banks promote Zelle as a fast and secure way to transfer money, but they often refuse to help victims when fraud occurs.

Unlike credit card fraud, where banks must issue refunds for unauthorized charges, Zelle payments are instant and usually irreversible.

If you were tricked into sending money, your bank may claim it’s not their problem—even if you were scammed.

At Dilendorf Law Firm, we help victims of Zelle fraud fight for their money.

If your bank refuses to reimburse you, we can review your case and explore legal options to recover your losses.

Types of Zelle Fraud

Zelle fraud comes in many forms, but the result is always the same—victims lose money, and banks often refuse to help.

Below are the most common scams that affect Zelle users.

1. Unauthorized Transactions

This happens when a hacker gains access to a victim’s Zelle account and transfers money without permission.

Criminals may steal login credentials through phishing emails, malware, or weak passwords. Once they gain access, they send instant transfers that cannot be reversed.

Many victims find that their banks refuse to reimburse them, even when the fraud is clear.

2. Impersonation Scams (Spoofing Fraud)

Fraudsters pose as banks, utility companies, or customer service agents to trick users into sending money.

These scams often involve phone calls or text messages claiming there is a problem with the victim’s account.

The scammer then tells the victim to send money to a “safe account”—which actually belongs to the fraudster.

Because the victim authorizes the transfer, banks often deny refunds.

3. Business Email Compromise (BEC) Scams

Scammers impersonate a legitimate business or vendor to trick companies and individuals into sending payments.

They may hack or spoof a company’s email and send fake invoices or payment requests.

Many businesses lose thousands of dollars before realizing they have been scammed.

4. Fake Product and Service Scams

In these scams, fraudsters pretend to sell goods or services and request payment through Zelle.

Once the victim sends the money, the scammer disappears without delivering anything.

Since Zelle is designed for personal transactions, it does not offer purchase protection—leaving victims with no way to get their money back.

5. Romance and Investment Scams

Scammers build relationships with victims online through dating apps or social media, gaining their trust over time.

Eventually, they ask for money, often using emotional manipulation or false investment opportunities. Once the victim sends funds, the scammer vanishes.

6. “Me-to-Me” Scams

This sophisticated scam tricks victims into sending money to themselves—but the money actually goes to the scammer.

Fraudsters impersonate a bank and claim there is suspicious activity on the victim’s account.

They then instruct the victim to transfer money to a “secure account” with their own name.

The money is rerouted to the scammer, and because the victim authorized the transfer, banks usually refuse to issue refunds.

Legal Issues and Regulatory Gaps in Zelle Fraud

Senator Elizabeth Warren’s Investigation

In 2022, Senator Elizabeth Warren’s office launched an investigation into fraud on Zelle and how banks handle scam-related claims.

The findings revealed:

• Fraud is widespread and increasing. In 2021 alone, Zelle users lost an estimated $440 million to fraud and scams.
• Banks refuse to reimburse most fraud victims. Data from several major banks showed that they reimbursed victims in only 9.6% of scam claims, leaving thousands of defrauded customers without recourse.
• Banks may be violating federal laws. Some banks failed to refund even unauthorized transactions, which could be a violation of the Electronic Fund Transfer Act (EFTA) and Regulation E.

Consumer Financial Protection Bureau (CFPB) and Zelle Fraud

The Consumer Financial Protection Bureau (CFPB) has regulatory authority over peer-to-peer (P2P) payment platforms like Zelle.

Under Regulation E, banks must reimburse consumers for unauthorized transactions—such as when a hacker gains access to an account and sends money.

However, scam-induced transactions (where a victim is tricked into sending money) are treated differently.

Banks argue that because the victim technically “authorized” the payment, they are not responsible for reimbursement.

The CFPB has indicated it may expand protections to cover fraudulently induced transactions, but so far, there has been no clear enforcement.

Potential Violations of Federal Banking Laws

• Failure to comply with Regulation E – Some banks do not refund unauthorized transactions, which may violate the Electronic Fund Transfer Act (EFTA).
• Misleading marketing – Banks advertise Zelle as a “safe” payment option but fail to protect consumers from fraud, which could be considered deceptive business practices.
• Inconsistent fraud policies – Some banks selectively refund certain customers while denying others, raising questions about fair banking practices.

What This Means for Victims

Many Zelle users assume their bank will protect them from fraud, but current laws leave major gaps in consumer protection.

If you lost money due to Zelle fraud and your bank refused to help, you may have legal options.

At Dilendorf Law Firm, we help victims challenge unfair banking practices and pursue legal action to recover lost funds.

What to Do If You’re a Victim of Zelle Fraud

1. Contact Your Bank Immediately

• Call your bank and report the fraudulent transaction.
• Request a reversal or refund, even if the bank initially denies responsibility.
• Keep records of your conversations, including names, dates, and case numbers.

2. File a Complaint with the CFPB

• If your bank refuses to help, file a complaint with the Consumer Financial Protection Bureau (CFPB) at www.consumerfinance.gov.
• The CFPB investigates complaints and may pressure banks to take action.

3. Report the Fraud to Law Enforcement and the FTC

• File a police report to document the fraud.
• Report the scam to the Federal Trade Commission (FTC) at www.reportfraud.ftc.gov  to help prevent further fraud.

How to Strengthen Your Case

• Save all transaction details.
• Gather screenshots of fraudulent messages.
• Keep documentation of your bank’s response

Contact Us

If you’ve been a victim of Zelle fraud, you don’t have to fight alone.

Dilendorf Law Firm is here to help you explore your legal options and work toward recovering your lost funds.

Contact us today at (212) 457-9797 or email info@dilendorf.com to explore your legal options.

Government Resources:

1. Facilitating Fraud: How Consumers Defrauded on Zelle are Left High and Dry by the Banks that Created It
2. A Fast And Easy Way To Lose Money: Insufficient Consumer Protection on the Zelle Network
3. To Help Americans Keep Their Money Safe, U.S. Senators Urge Regulators to Hold Zelle Accountable for Inadequate Protections to Stop Fraudulently Induced Payments to Crooks
4. New Scam Alert: Zelle Payments
5. Send and receive money with Zelle®
6. CFPB Sues JPMorgan Chase, Bank of America, and Wells Fargo for Allowing Fraud to Fester on Zelle
7. Zelle and the Big Banks Fail to Protect Consumers from Fraud
8. Do you use payment apps like Venmo, CashApp, or Zelle?

We stay up to date and track cases involving Zelle fraud:

1. Early Warning Services, LLC; Bank of America, N.A.; JPMorgan Chase Bank, N.A.; Wells Fargo Bank, N.A

On December 20, 2024, the Bureau filed a lawsuit against Early Warning Services, LLC (EWS), Bank of America, N.A., JPMorgan Chase Bank, N.A., and Wells Fargo Bank, N.A., claiming they failed to safeguard the Zelle network from fraud and other defects, which resulted in hundreds of millions of dollars in consumer losses.

2. IMG Holding LLC v. James Dimon et al. and JPMorgan Chase & Co.

IMG Holding LLC filed a derivative lawsuit against JPMorgan Chase & Co. and its Board of Directors, alleging that they failed to address fraud risks associated with Zelle and violated federal regulations by not properly reimbursing consumers for unauthorized transactions. The lawsuit claimed that JPMorgan ignored warning signs, provided incomplete responses to a Senate investigation, and failed to uphold its fiduciary duties. However, the Delaware Court of Chancery dismissed the case with prejudice, ruling that the plaintiff did not sufficiently demonstrate that the board acted in bad faith or violated legal obligations.

3. Tristan v. Bank of America, N.A.

Plaintiff Natalie Tristan filed a class action lawsuit against Bank of America (BoA), alleging that the bank failed to protect consumers from fraud occurring on the Zelle payment network. The lawsuit was initially filed in the Superior Court of California, County of Orange, before being removed to federal court by BoA.

4. The Zelle scam is back! | Reddit User | 2024

Be SUPER CAREFUL! Exactly as described, they put big $$$s into this one. 99% convincing. Ask for a number from the Zelle rep. Come back with a Gmail account. that was it for me. They knew everything about me, including SS.

5. I think I was scammed through Zelle and no-one is able to help | Reddit User | 2024

I sold something on Facebook Marketplace… I checked the app, and it said the money was sent. I checked my bank account, and the money was in there. I woke up this morning and looked again at my online bank statement, and the payment had been removed from my account. On the statement, it read “Deposit Adjustment Shared Branch.”… I called Zelle, and was told that they have no access to the payment information if it was done through my banking app, rather than the Zelle app. I called my bank and they said as it was done through the Zelle app, they couldn’t help I need to contact Zelle. So both sides are refusing to help.

6. “Wells Fargo” and “Zelle” scam – be aware! | Reddit User | 2024

Just wanted to share a scam that just happened to me this morning so others can avoid – Luckily I did not send any money. I got a call from an 800 number stating to be a Wells Fargo Rep. I don’t bank at Wells Fargo, however I did a Google search of the phone number and the Wells Fargo website was the first to pop up.

7. My bank/Zelle combo scam | Reddit User | 2024

I just wanted to share my recent experience getting hit for $3,000 (four $750 Zelle payments, done through my banking app). Below is most of the email I sent to my bank detailing everything I could remember, exactly how it happened (yes, it’s a long read). I’ve since reported the situation to the FBI IC3 (Internet Crime Complaint Center, the FTC “ReportFraud” site, the Cybercrime Support Network and made four separate reports to Zelle for each transaction.

8. I got Zelle scammed, here are the details, learn from me | Reddit User | 2024

I was selling a couch on fb marketplace. He said the Venmo wasn’t working, I figured a lot of people have Venmo limits and stuff so I gave him my Zelle. Should be fine. I get these messages from Zelle.inquiry@mail.com whole I’m on the phone with him as he says he’s just sent the $400. Zelle does always message to inform you of a transfer so I was not surprised to get a message. (See messages for details). He explains he’s done this before and asks if I promise to send him back the $300 when he sends me the $700. I wanted to be a good person ofc because I’m not a scammer. I sent $300 twice because of these messages. The one asking for $1,500 seemed wild. I told him I was going to call the bank and check. He did NOT want me to do that… I filed a report with my bank in less than an hour but since it’s Zelle, I’m sure I won’t be getting my money back.

9. “Impressive” Zelle Scam – Cancellation Codes, Caller Claiming to Be From Bank, Then Transfer to Zelle | Reddit User | 2024

This is the first scam that I wasn’t able to determine with certainty in the first 30 seconds whether it was a scam or not. Got a call from a number belonging to Chase, the representative said he was calling from “JP Morgan Chase” which sounded weird to me, if they’re someone calling from the bank they’d usually just say “Chase” but whatever, could be a new employee. The person told me someone had used my mobile number through Zelle to send money to a Chase account belonging to [don’t remember name]. They gave me amounts and cancellation codes. At this point they haven’t asked me for any information, so I kept it going…

10. The Dreaded Zelle Scam | Reddit User | 2025

Exactly two weeks ago I was sent $100 through Zelle from an unknown person, did the research, knew it was a scam, and ignored it. I meant to call my bank but things have been incredibly hectic this month so I never have time to call my bank during the hours their customer service is open. Fast foward to today, I get sent $70 from the same person and this blatantly scammy text…