Basically, Zelle and Venmo are identified as “peer-to-peer” payment systems. While Venmo is a subsidiary of PayPal, Zelle was developed by significant banks. Both require registration; Zelle is frequently available through your bank or credit union, whereas Venmo will enable transactions between Venmo accounts/balances.
Can you believe that Apps like Venmo and Zelle have led people to lose millions? Yes, it’s true! In recent years, so many users have shifted to using payment apps like Zelle, Venmo, and Cash App as their preferred means of sending money.
Federal law requires banks to reimburse customers for unauthorized electronic transfers, but they regularly fail to do so, leaving victims stuck. Banks argues that they shouldn’t be compelled to compensate customers who unintentionally let a con artist use their accounts. They have repeatedly been reluctant to pay customers whose money was stolen. Now, that might be against the law in some situations!
If you have never used these apps, you may be wondering what exactly these are?
Basically, Zelle and Venmo are identified as “peer-to-peer” payment systems. While Venmo is a subsidiary of PayPal, Zelle was developed by significant banks. Both require registration; Zelle is frequently available through your bank or credit union, whereas Venmo will enable transactions between Venmo accounts/balances.
So, what scams are using Zelle and Venmo? Nearly all of them include; get-rich-quick schemes, check fraud, romance, buying and selling of products and services, phony rewards, tech support, and charity scams.
Wondering how these work? Continue reading; this article is all about it!
How Do These Scams Work?
Zelle Scams
With $490 billion in transactions in 2021, Zelle will likely overtake Venmo as the country’s most popular digital transfer app. However, on the other hand, according to the New York Times, con artists and criminals used Zelle to move thousands of dollars via false tech support, SIM swap assaults, and other tactics to gain access to bank accounts in many cases. How unfortunate!
A common scam involves an email or text message asking a user to confirm a large, fake Zelle payment. When the user responds that they did not authorize the transfer, the con artist calls them again while posing as the bank and using a phone number that belongs to the financial institution. They lead the caller through fictitious instructions on rejecting erroneous claims, and sending money to the criminals.
For example, a person named Argelys Oriach had $8,294 stolen from his Capital One account through Zelle. Before the Times became involved and got in touch, Oriach only received $250 of it back despite a police investigation and grand jury testimony. The bank later provided the whole amount and expressed regret for the inconvenience.
Similarly, Chuck Ruoff lost $3,450 through Zelle to a SIM swap attacker, and all Bank of America told him initially was that the transaction “did not appear to be unauthorized” — the Times’ words, not the bank’s. After hours of calls and more than 45 days of waiting later, he finally received assistance from the newspaper. In the end, Bank of America issued a complete refund. Thank God!
Venmo Scams
Venmo is an app designed to simplify money transfers, and it works the same way as an electronic banking transaction. The app is famous for selling goods and helps transfer money with friends and family. Sadly, Venmo is now the target of several fraudulent transactions.
Often, the victims of Venmo scams are people trying to sell something. They might be selling computers, fancy handbags, phones, or other goods. When a buyer contacts a vendor to purchase after seeing an advertisement, Venmo is used to transfer the funds. The seller now receives notification that money is in their Venmo account as a random person picks up the sold item. Seems easy, no? Well, not quite yet. The seller is informed that the money transaction was reversed when the buyer is a con artist. There is usually no warning, and the seller is left empty-handed and without any money.
Venmo & Twitter Bot Scams
As if there were not already many scams, fraudsters are now exploiting Twitter bots to mislead unwary tweeters into sending money to accounts they control via PayPal and Venmo. The bots appear to be launched when a legitimate user requests payment information from another.
The bots apparently find these tweets by searching for keywords like ‘PayPal,’ ‘Venmo,’ or other services. They impersonate the other user by scraping their profile image and using a similar username, then providing them with fictitious payment information in the hopes that the original tweeter will deposit money into this account. How sad is that?
If your a victim of a similar scam please get in touch with us to that we can help you get your money back!
Lost money to online fraud? We will recover your funds !
How To Avoid Becoming a Victim?
Around 1 million people fell victim to Venmo scams last year, with a lot more when it comes to Zelle. Everyone wants to believe that the internet is safe, but it is always recommended to do a reality check and watch out for such scams that are increasing now more than ever.
We as humans are perhaps the easiest target for malicious scammers as they can reach us faster than ever in today’s world. They can get into your private and professional lives without you having a slight idea through these websites and apps. We don’t expect you to stay away from these apps, but we hope everyone takes steps to ensure their payments go into the right hands!
For example, don’t respond to unsolicited text messages or emails, never give anyone your two-factor authentication passcode and use these apps for transfers to people and businesses you trust only.
As with most scams, avoid letting your emotions control how you behave. Be aware that money transactions using Zelle and Venmo happen instantly after authorizing them. Also, report any fraud you know of immediately to the relevant bank or credit union. Or you can even come to GlobalPayback, the best in the business!
Put An End To Venmo & Zelle Scams – Seek Help From The GlobalPayback!
Conclusively, if you or someone you know has been already a victim of these scams, contact GlobalPayback! People at GlobalPayback want to help you get back on your feet. When considering the laws and regulations, they ensure you receive the most reputable recovery service possible. Stay Safe!
Sources
- Author: Jules Wang – https://www.androidpolice.com/stolen-venmo-zelle-account-payment-app-fraud/
- Author: Elliott Greenblott – https://www.berkshireeagle.com/opinion/columnists/so-what-scams-are-using-zelle-and-venmo-almost-all-of-them/article_0ce874f4-5d0b-11ec-980b-2b944c1a7f3b.html
- Author: Sara Morrison – https://www.vox.com/even-better/23157229/online-scam-venmo-zelle-cashapp-crypto
We is committed to upholding the journalistic standards online, including accuracy. We report news related to scams and we aim to be accurate in our reporting. Our policy is to review each issue on a case by case basis. Upon becoming aware of any potential error or need for clarification, we try act on it as quickly as possible. Please notify us first so that we can resolve the issue.
