July 25, 2022

8 Common Zelle Scams to Watch Out For

An excerpt from Reader’s Digest‘ article, “8 Common Zelle Scams to Watch Out For” with comments from Phosphorus Chief Security Officer Brian Contos

Zelle is a P2P (peer-to-peer) system that allows you to send money quickly and conveniently from your credit card or bank account, only requiring you to enter the recipient’s phone number or email address. Zelle was created in 2017 by the company Early Warning Services (EWS), which is owned by seven of the biggest banks in the United States, including Bank of America and Capital One. Hundreds of banks and credit unions now offer Zelle as a service.

Aside from its ease of use, Zelle’s main draw is the speed at which money can be transferred. “Unlike traditional financial transfers, such as wire transfers, which can take a day or longer to process, Zelle transfers happen instantly,” explains Brian Contos, Chief Security Officer of Phosphorus Cybersecurity in Nashville. “That means once you’ve made a Zelle payment to someone, the money is out of your account and essentially gone—with no way to stop the transaction.”

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Read the full article here.