In the wake of yet another Zelle scam that targeted a major bank last week, the Federal Trade Commission (FTC) has issued a warning to the public, cautioning them about scammers who impersonate well-known companies, specifically on job platforms like LinkedIn. According to the FTC, these scammers pose as recruiters but instead of offering legitimate job opportunities, their intention is to deceive people into handing over their money and personal information. Larissa Bungo, a senior attorney at the FTC, emphasized the need to exercise caution when interacting with individuals claiming to be recruiters on LinkedIn or other job sites.
While the recent warning focuses on job seekers, experts believe that scammers employ similar tactics across different industries. Their modus operandi involves convincing victims to provide personal information, such as their driver’s license, Social Security number, or bank account details. These scammers then send invoices demanding payment through payment platforms like Zelle or PayPal. The alert stresses that scammers may promise reimbursement, but it is all part of their deceitful scheme.
In the earlier part of this year, a report from the FTC showed that consumers reported losses of nearly $8.8 billion to scams in 2022, a significant increase of over 30% compared to the previous year. Among the various types of fraud reported, imposter scams were the most common. These were followed by online shopping scams, prize and lottery scams, investment-related scams, and scams related to business and job opportunities.
In a recent Zelle scam, fraudsters targeted Bank of America customers by informing them that someone was withdrawing money from their accounts using Zelle. The scammers would then instruct the victims to send back the withdrawn amount via Zelle, assuring them that they were already taking care of the situation and advising them to ignore any warnings from the bank. The spokesperson for Zelle stated that the network now offers consumer reimbursement benefits for specific types of impersonating scams, but it is important to note that not all cases may be covered under this rule.
Bank of America did not respond to requests for comment regarding the specific scam.
This latest bank scam involving Zelle is just one in a series of incidents that have brought the payment platform under scrutiny. Various groups, including lawmakers such as Senator Elizabeth Warren, have criticized Zelle’s parent company, Early Warning Services, for what they perceive as a high level of fraud on the platform. Senator Warren, a member of the Senate Banking Committee, raised concerns about Zelle’s fraud policy in December during a hearing with Early Warning Services. She highlighted a report from her office in October 2022, which revealed that fraud and scams on Zelle had seen a dramatic increase of over 250%, reaching a total value of more than $255 million in 2022 compared to over $90 million in 2020. Additionally, the report found that less than half of the value of unauthorized transactions classified as fraud by Early Warning Services was returned to consumers in 2021 and the first half of 2022.
To protect themselves from scams, the FTC advises consumers to never disclose personal information without conducting thorough research. It is important to reach out to companies directly using verified phone numbers or by visiting their official websites.