Zelle fraud refers specifically to financial scams or unauthorized transactions conducted through the popular peer-to-peer digital payment service Zelle. Zelle payment transfers are designed to be instantaneous and are also difficult to reverse, making the platform an attractive target for fraud. Common Zelle fraud schemes include social engineering attacks (victims are tricked into sending money to fraudulent buyers or sellers of goods), account takeover attacks where passwords are phished and money is transferred from the victim's account, and impersonation scams (including romance scams and fake emergencies involving a family member). User education and transaction monitoring are essential to combat Zelle fraud.
Use case/ examples for Zelle fraud
Social engineering defense: Educating customers about how to identify common Zelle scam tactics, including fake buyer/seller schemes, bank impersonation calls, and emergency requests, to help them reduce their susceptibility to manipulation.
Account security: Implementing robust authentication and transaction monitoring to prevent account takeover attacks that often result in unauthorized Zelle transfers once the account is compromised.
Transaction monitoring: Analyzing Zelle transaction patterns for anomalies such as unusual recipients, atypical amounts, or activity inconsistent with customer history to detect and flag potentially fraudulent transfers.
