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San Diego County Zelle Fraud Lawyer

Zelle pay scams are on the rise, from Zelle scams on Facebook marketplace to Zelle pay scams perpetrated by impersonating bank personnel. Oftentimes consumers do not comprehend how their money can vanish from their account within seconds. In 2020, consumers lost over 56 million to identity fraud, out of which 43 million were lost due to identity theft where victims were directly contacted by scammers. Further, 18 million victims lost their money only through P2P platforms like Zelle! If you’re one of them, a competent Zelle fraud lawyer from Barthel Legal is here to fight for you. Contact us today.

Zelle Fraud Lawyer | Here to Protect You

An application like Zelle allows consumers to transfer money to other customers from bank to bank without having to go through a third party. This allows for the transferring of money in real time, making it one of the quickest modes of transferring payment. However, lately, it has become a favorite amongst scammers, due to its vulnerability to hacking.

Even worse, the banks do not intend to take responsibility or liability for Zelle pay scams, nor do they have the ability to reverse the transaction. This leaves the consumer vulnerable and often the one holding all the liability. Zelle pay scams or Zelle scams on Facebook’s marketplace involve duping the customer into providing their Zelle details, which allows the scammers to access their account information and take the consumer’s money. If you’re a victim, a dedicated San Diego consumer lawyer from our firm stands ready to get the justice you deserve.

What Are Zelle Scams?

Zelle is a payment platform used by millions of people to transfer money; however, nowadays it has become a fraud hub for scammers where the scammer impersonates bank employees. The application networks are monitored by Early Warning Service, a company owned by seven banks, with application users comprising 1425 banks and credit unions.

This Zelle pay scam starts with a message that says, “Did you authorize the payment of [a certain amount], type Yes or No”. The consumer types “No” and immediately gets a call from the scammer that impersonates a bank employee. The scammer will then tell the consumer that the scammer has detected fraud on the consumer’s bank account and a certain amount has been deducted from the consumer’s account.

The scammer will claim that to reverse that transaction, the consumer will need to send him or herself the funds through the Zelle application. The scammer will ask for the code that has been sent to the consumer. However, this code is nothing but the scammer initiating a forgotten password from their side for the victim’s bank account and once the code is entered the victim’s bank account is hacked.

Ironically, people who have never used Zelle are still scammed through this application because most bank accounts include the ability to transfer money through Zelle. Therefore, the scammer will walk these “new users” through the setup of the Zelle account and have them send the scammer money when the consumer believes they are sending money to himself or herself.

There is a second prominent way, which is through Zelle scams that utilize the Facebook marketplace. This is done by targeting the Facebook marketplace sellers, or even buyers. Scammers will ask a seller for a product and say that they are making the payments, they send the consumer the payment screenshot, and you might even get a mail that your account has been credited with a certain amount; however, the seller never receives a cent, despite sending the product.

What Should I Do if I’m a Victim of a Zelle Scam?

We’re sorry that you had to experience something like this, but the first thing that you can do after discovering that you are the victim of fraud is to file a complaint to the consumer financial bureau protection.

Please be extra cautious about filing the complaint, as you can’t file a second complaint about the same issue. Attach the relevant documents, that show how the fraud happened, and the account statements. You can attach the details of the company through which the fraud has happened and the complaint is directly forwarded to the company through CFPB. This generally takes 15 days to get back to you on this complaint. You can also contact CFPB by calling on this number: (855) 411-237.

You should also file a police report, by visiting the local police department, narrating to them the whole incident, and providing them with all the relevant documents. The trick here is that if you have been a victim of fraud, you should report it immediately.
Raise a complaint with the bank along with the police report that will become a part of the investigation for your case. Generally, the time to file the claim is 60 days, but it’s better if you do it ASAP.

Why Do Victims of Zelle Pay Scams Find It Hard to Protect and Get Their Money?

On Zelle’s website, they claim that if you are the victim of a scam through your Zelle account, this will qualify as an “authorized” transaction and you may not be able to get your money back. Banks will also make this claim and state that since you sent the money, you are not entitled to get a refund. However, that is not what the law says.

As per the guidelines issued by CFPB in 2021, consumers should not be held liable when they are tricked by third parties who claim to be representatives of the consumers’ financial institutions to gain their account login credentials or any other relevant details. Even when the consumer is tricked into sending money via Zelle, this should be classified as an unauthorized transaction that allows the consumer to receive a refund under Regulation E.

Despite these regulations, it’s disappointing that the banks refuse to provide consumers with refunds. The lost funds are the consumer’s hard-earned money that should be returned to him or her, but as consumers, people generally do not know their rights. Consumers are mentally drained and disgruntled and don’t know what to do in these situations.

Contact a Zelle Fraud Lawyer

If you have been exposed to a Zelle scam, it’s strongly advised that you hire an attorney that can guide you from start to finish and can get your case resolved much quicker.

Barthel Legal law firm is a trusted consumer protection advocate. If you have been a victim of any kind of Zelle scam and your bank has refused to help you with your money, book a free consultation with a seasoned Zelle fraud lawyer from our firm today.

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