---
title: Zelle is a hotbed for fraud — and banks aren’t helping
description: Scammers love the immediacy of the P2P transfer service, and banks aren’t helping.
---

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# [Zelle is a hotbed for fraud — and banks aren’t helping](https://hs-sbup.thehustle.co/news/03102022-zelle)

 Written by [Rob Litterst](https://hs-sbup.thehustle.co/news/author/rob-litterst) | Mar 10, 2022 9:07:07 AM

Venmo scared the sh*t out of the banks, so it was only a matter of time before they launched an alternative.

Enter Zelle.

The app, created by America’s 7 largest banks in 2017, supported **$490B** in transfers in 2021 — more than 2x Venmo’s total ($230B).

#### **But, as the Notorious B.I.G. said, mo money…**

… brings mo problems. Per *The New York Times*, Zelle has [become](https://www.nytimes.com/2022/03/06/business/payments-fraud-zelle-banks.html) a scammer’s paradise, and the banks aren’t rushing to help.

Scammers love Zelle because payments hit immediately, unlike most bank transfers, which take 1-2 days to clear (AKA enough time for a victim to realize they were duped).

This has led to a flurry of scams on the platform, including:

- **Romance scams**, which [reached](https://thehustle.co/02012022-romance-scams/) record highs in 2021
- **Crypto scams**, which recently [became](https://www.news4jax.com/news/local/2022/03/09/cryptocurrency-scams-now-2nd-riskiest-scam-according-to-bbb-report/) the 2nd riskiest scam, per the Better Business Bureau
- **“Me-to-me” scams**, in which a scammer convinces the victim to give up sensitive information to gain access to their bank account

#### **So what are the banks doing?**

Not much. The federal law for electronic transfers doesn’t protect victims who transfer the money themselves — which is how most scams happen.

As a result, banks argue they aren’t liable for refunds. Unless, of course, a journalist reaches out: In multiple instances where the *NYT* contacted a bank that had previously told a victim “no,” the bank offered a refund.

So what can you do if you don’t have a pal at the *NYT*? One expert says consumers should treat Zelle transfers like they would cash. Even better — go back to cold, hard cash itself.

[View full post](https://hs-sbup.thehustle.co/news/03102022-zelle)

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