Daniel Oropeza at Lifehacker reports that there has been a rise in people being scammed with the Zelle payment app. There are a lot of other similar payment apps, and they all provide an easy way to send money to others without having to write a check or have cash on hand. This can serve as a possible easier means of doing business: These apps may take out certain steps, e.g., writing and mailing a check, when paying your contract workers and easier way to keep track of payments for 1099-R IRS reporting. Plus the recipient can get their money almost instantaneously! The problem with these apps is when you get unsolicited calls, e-mails, or texts to "authorize" or "confirm a payment" you did not make or were expecting. You get a text like this:
FreeMsg: BANK OF AMERICA Fraud Protection Team: Did you attempt a Zelle Transfer for $550.00 on 10-10-2022? Reply YES or NO. To Opt Out Fraud Alert Text reply STOP
This seems like a fairly innocuous message. But replying to it gives the scammers enough information to empty your bank account. Never a good thing. Remember, Zelle is by its own definition “… is a great way to send money to friends and family, even if they bank somewhere different than you do.” (emphasis added). So when you get one of these messages, you should have an idea if you have been sending or receiving money to/from someone. You should never give out personal/business information from unsolicited communications.
Here are some tips to avoid being scammed through a payment app: