Security News > 2022 > March > Fraud on Zelle

Other types of bank transfers or transactions involving payment cards typically take at least a day to clear.

Once crooks scare or trick victims into handing over money via Zelle, they can siphon away thousands of dollars in seconds.

There's no way for customers - and in many cases, the banks themselves - to retrieve the money.

When swindled customers, already upset to find themselves on the hook, search for other means of redress, many are enraged to find out that Zelle is owned and operated by banks.

The Zelle network is operated by Early Warning Services, a company created and owned by seven banks: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo.

Banks and credit unions that use Zelle can customize the app and add their own security settings.

News URL

https://www.schneier.com/blog/archives/2022/03/fraud-on-zelle.html