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Zelle users who lost money to impostor scams are starting to receive refunds from financial institutions that participate in the money transfer service.
Early Warning Services, Zelle’s operating company, has now confirmed a policy change back on June 30 that requires Zelle’s 2,100 bank and credit union participants to reimburse consumers for what it calls qualifying impostor scams. Zelle says on its site that impostor scams may include someone pretending to be calling from a business, the government, a bank or a utility company.
Lawmakers raised red flags earlier this year, prompting the peer-to-peer network to take action.
“The change ensures consistency across our network and goes beyond legal requirements,” an Early Warning Services spokesperson said in an email. “Our bank and credit union participants must reimburse consumers for qualifying imposter scams, including when a scammer impersonates a bank to trick a consumer into sending them money with Zelle.”
Federal Regulation E, which sets rules for sending funds electronically, doesn’t require banks to reimburse consumers duped into authorizing money transfers. However, federal law does require reimbursem*nt if an account is hacked and criminals steal funds or use stolen information (such as credit card or account numbers) to make purchases.
How To Get A Refund After An Impostor Scam On Zelle
If you used your Zelle account to send money to an impostor, you should file a claim with Zelle and your bank or credit union. Zelle is reversing charges, but each claim needs to be approved on a case-by-case basis. Your funds will be returned to your account in accordance with your bank’s policies.
Zelle app customers can report unauthorized transactions by phone at 844-428-8542. If you’re enrolled in Zelle through your bank or credit union, contact them to report a scam or unauthorized transactions.
You can also report the scam directly to the FBI Internet Crime Complaint Center.
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FAQs
File a fraud claim with your financial institution under Regulation E. Fraudulent Zelle transactions can be refunded. While you might think that losing money to a Zelle scam is an obvious form of fraud, you will find that banks, Zelle, and the law think differently.
Can I get my money back if I got scammed on Zelle? ›
Immediately report suspected unauthorized activity to your financial institution. Because you did NOT authorize a payment, you are typically able to get your money back after reporting the incident.
Will Zelle cover me if I get scammed? ›
If you authorized a payment through Zelle, even if you were tricked or scammed, Zelle does not cover losses.
Can a Zelle payment be reversed? ›
No, Zelle® payments cannot be reversed. With Zelle® money moves into an enrolled recipient's account within minutes and cannot be reversed.
Can a Zelle payment be disputed? ›
Funds should only be sent to someone you know.
Once the funds leave, they are like cash and unlikely to be returned. We can only attempt to dispute a transaction that happened within 120 days.
Do banks refund scammed money? ›
The short answer is: it depends. While getting a refund after losing money to scammers is possible, the outcome depends on factors like bank policy, the type of scam, the amount lost, and how quickly the scam was reported.
Can you go to jail for scamming on Zelle? ›
The federal government takes online fraud very seriously, and it has a number of laws that make online scamming punishable by jail time. The maximum sentence for wire fraud is 20 years in prison.
Can Zelle refund money if scammed Wells Fargo? ›
Neither Wells Fargo nor Zelle® offers purchase protection for payments made with Zelle® - for example, if you do not receive the item you paid for or the item is not as described or as you expected.
Can a bank reverse a transaction if scammed? ›
A bank can reverse a transaction or cancel it if the bank account holder never approved it (i.e. a purchase made with a stolen credit card), but the authorization from the account holder — even if made under false pretenses — notes the transaction as legitimate in the eyes of a financial institution.
Can I get my money back if I sent it to the wrong person? ›
It may request for a reversal of transaction. If the beneficiary agrees, the transaction will be reversed back within 7 working days. In case of beneficiary from another branch, you have to personally visit the branch to meet the bank manager for the solution.
While banks are generally obligated to refund money lost to fraud, they may deny the refund if you were negligent or involved in the scam.
How do I claim a Zelle payment? ›
Someone sent me money with Zelle®, how do I receive it? If you have already enrolled with Zelle®, you do not need to take any further action. The money will move directly into your bank account associated with your profile, typically within minutes1.
How to recover money sent to a wrong number? ›
"In case the money has been transferred to the wrong account, prompt action is essential from the customer end. Contact your bank immediately, providing transaction details and the involved account numbers. Attempt to communicate with the unintended recipient to request a return of funds.
Will Zelle refund money if scammed Wells Fargo? ›
For your protection, Zelle® should only be used for sending money to friends, family, or others you trust. Neither Wells Fargo nor Zelle® offers purchase protection for payments made with Zelle® - for example, if you do not receive the item you paid for or the item is not as described or as you expected.
What if I received money from Zelle from someone I don't know? ›
Contact Zelle: Rather than sending the money back or spending it, get in contact with Zelle. Explain your situation and let them know that you believe this may be a possible scam attempt to get you to send the scammer your money. Zelle may reverse the payment to the stranger so you can avoid sending it back yourself.
Can I cancel a pending Zelle payment? ›
Select Transfer & Pay, then Send & request money with Zelle®. Choose Activity. Within the "Pending payments" section, locate the payment you'd like to modify. Choose Cancel payment next to it, then select Cancel once more to confirm.
