Is Zelle Safe To Use In 2025? Let’s Find Out

Zelle is a popular payment platform with a staggering $806 billion transaction volume, a 28% increase from last year. It is also set to expand at a growth rate of 20% in the next five years. Zelle allows free instant transfers from the app. As companies strive to enhance the customer experience and make things convenient for them, payment platforms like Zelle are becoming more popular than ever. However, users need to be cautious because digital payment fraud and scams have started rising alarmingly, so users are concerned about whether Zelle is safe to use.

However, you need not worry; we’ll cover everything in this guide. We will examine how Zelle works, some common scams you may encounter while using Zelle, and what steps you need to take to protect yourself against Zelle scams. So, if you’re ready to uncover the answer to the widely anticipated question – Is Zelle secure? Then keep reading, and let’s find out.

What Is Zelle & How Does It Work?

Zelle is an online payment platform that enables you to send and receive money to and from other U.S. bank accounts. It is run by a private company and is owned by some of the country’s most renowned and popular financial institutions, such as Bank of America, Wells Fargo, and Capital One. Through Zelle, you can electronically transfer money from your bank account to other registered user’s bank accounts by using a mobile device or the website of a participating banking institution. There are no charges on the transactions.

To use Zelle, you don’t have to fund a separate account like PayPal; it will link directly to your bank account. However, there can be some limits on the frequency of transfers and the amount of dollars that can be transferred. This can differ between the banking institutions. Here is how Zelle typically works:

1. You must enter your email or phone number in the banking or Zelle apps.
2. You then use the recipient’s email address or phone address linked to Zelle to find them.
3. You can send money in any amount by clicking submit.
4. If the recipient has an account on Zelle, the funds will be transferred within minutes. If not, they will receive an invite, and the money will then be transferred within three business days.

What Are Some Common Scams On Zelle?

As of 2022, 80% of the population in the U.S. can connect to Zelle on their banking app, with support offered by 1600 financial institutions. Zelle, however, has been criticized for being a platform that facilitated online financial fraud in the United States.

This may have you wondering how secure is Zelle and the concerns regarding it’s usage. Unfortunately, Zelle has encountered various types of scams, and they’re becoming even more advanced as malicious actors learn to navigate how to trick users and steal their money. If you’re already using Zelle, you must be aware of these scams to protect your accounts. Some of the common types of scams that you may have the misfortune of stumbling upon include:

1) Bank Impersonators

Smishing is a type of phishing in which scammers send text messages pretending to be from reputable banking institutions. It is similar to phishing scams, where users are tricked into divulging sensitive and confidential information. Most smishing text messages that the user receives either claim to flag a suspicious login or purchase. Responding or clicking these text messages will get you a call from a fake banking representative, who may trick you into divulging your sensitive financial data.

2) Refund & Recovery Scams

Suppose somebody bilked you, and if that were to happen, then scammers would know that you would do anything to try to get your money back. Refund and recovery scams exploit the victim’s vulnerable state by charging for fake services. In these scams, you’ll receive a call that will flag a fraudulent Zelle transaction from your bank account. The caller claims to be from your bank and offers evidence by providing a legitimate caller ID. They will then explain to you a fake Zelle refund process. You end up paying the scammer to reclaim the funds that you never lost to begin with.

3) Facebook Marketplace Scams

Zelle scammers on Facebook Marketplace have become common. In this type of scam, the alleged buyer responds to a listing on Facebook Marketplace and inquires if the item is still available a couple of hours after the listing becomes available. The scammer pretends to be someone who isn’t that tech-savvy.

They will then ask for your contact details, like your phone number or email, so they can transfer the money to you on Zelle. You may also receive a phishing email from a Zelle lookalike domain. These emails will coerce you into paying to upgrade to a Zelle business account. You will be asked to pay through a link in the phishing email.

4) Phishing & Impersonation Scams

Technically adept scammers can spoof phone numbers to impersonate a bank representative or Zelle. By pretending to be a banking institution, they send text messages to customers to inform them of suspicious activities on their accounts. The texts may require them to provide personal information like bank account numbers and login credentials, or they ask the customer to send the payment through Zelle to reverse the fraudulent transaction.

In other situations, the scammers will call the customers directly, posing as a financial institution and warning them of sketchy activities on their accounts that require their attention. They will ask the customers to follow specific instructions to keep their funds safe, including transferring money to a Zelle account that apparently belongs to the customer but belongs to the scammer.

Is Zelle Truly Safe For Users?

Zelle uses many security measures to protect its customers’ data and accounts. There are different advantages and disadvantages to using Zelle, and we’ll examine all of them to better understand how Zelle protects your data and what some of the drawbacks are.

Advantages of Using Zelle

• Zelle has a firewall that acts as a round-the-clock filter. It scans all data that attempts to enter a network and prevents anything malicious from entering.
• Zelle has access controls that limit the functionality of what users can and cannot perform. They do this by assigning permissions to authorized individuals. They also restrict access to files and the ability to create, edit, and delete information.
• Zelle also has physical access controls, and security staff and detection systems are used to better manage its data storage location. Only authorized personnel can gain access with multi factor authentication.
• Another benefit of Zelle is that it allows you to use security features built into your device, like facial and fingerprint recognition. Zelle does not collect or store biometric verification data when users use the app.

Drawbacks Of Using Zelle

Although Zelle has excellent security measures in place, they don’t take any personal responsibility or accountability for people who become victims of scams. Zelle has clarified that it is the user’s responsibility to ensure the accuracy and authenticity of their data and passwords by not sharing this information with third parties. Here are some constraints that come with using Zelle:

• Unfortunately, Zelle does not provide Purchase Protection. Although the transactions made through Zelle are done instantly, they don’t come with any form of protection if made to the wrong person or a scammer. Whether you’re paying an impersonator or perhaps a customer was scammed to pay someone under your business name, there won’t be any compensation or help from Zelle.
• Another drawback of using Zelle is that it does not allow or enable refunds. If a payment has been transferred and the customer wishes to return the item, you cannot refund the payment through Zelle. You must initiate a new payment into their account or use a different payment method. Zelle also doesn’t entangle itself in chargebacks, so you will not protect purchases that are part of a scam.

How To Protect Yourself When Using Zelle?

Here are some steps that you can implement when you’re using Zelle to protect yourself from malicious actors and scams:

1) Use AstrillVPN

AstrillVPN encrypts your internet traffic and masks your IP address, keeping you safe and secure from online threats and protecting sensitive and confidential information. When you use Zelle, you must use it over a secure WiFi network to protect your sensitive data from being intercepted by malicious actors. That’s where AstrillVPN comes into the picture. All your sensitive data gets routed through a secure and encrypted VPN tunnel, keeping your activities secure when using Zelle.

AstrillVPN also provides AES 256 encryption and robust protocols like Wireguard, OpenVPN, and StealthVPN. It adheres to a strict No Logs Policy, which means it does not track your activities or online sessions when you’re using the VPN. Your data gets deleted as soon as you log out of the VPN.

2) Implement Strong Passwords

Use strong passwords for your Zelle account and other online accounts. This makes it challenging for malicious actors to intercept your Zelle account. Passwords should be strong and complex and contain uppercase and lowercase letters, special characters, and numbers. This ensures that malicious actors cannot easily gain access to your data.

3) Enable Multi Factor Authentication

Enable multi-factor authentication on all your accounts. Multi-factor authentication requires additional verification before allowing access to your online accounts. It can be done in multiple ways, including sending an OTP (one-time password) to your email or phone number and using biometric verification, such as fingerprint authentication.

4) Be Cautious With Vendor Payments

Zelle is useful for small businesses to pay vendors’ salaries. While Zelle has not integrated with accounting software, many applications allow you to log transactions manually. If you’re paying an unknown vendor or someone new for the first time, you should not use Zelle. Instead, you can opt for a more official payment method or use your debit/credit card. You can use Zelle to pay vendors once you can trust the vendor and have made a few transactions.

5) Be Cautious With Urgent Payment Requests

Scammers will always create a sense of urgency to make you transfer money. If you feel like you’re being coerced to pay money instantly, it’s a red flag. It’s also a red flag if the vendor or utilities company threatens to cancel your service if you don’t give them the money immediately. You should contact the company to verify the legitimacy of these requests so that you don’t get scammed.

6) Monitor Your Business Accounts

Stay vigilant by constantly monitoring your bank account’s activities. If you suspect or detect any suspicious behavior, immediately report it to your banking institution. Keep your Zelle app and other banking apps updated, as these come with the latest security patches that can fix known vulnerabilities. Also, keep yourself informed and updated about new fraud tactics and scams so that you can easily detect them and prevent them.

What Steps Do You Need To Take Immediately If You’ve Gotten Scammed On Zelle?

So, you’ve had the misfortune of getting scammed on Zelle and want to implement some immediate measures to mitigate some of the damage caused by falling prey to this scam. Here are a couple of things that you need to do instantly:

1) Contact Your Banking Institution

If you detect suspicious activities or fraudulent transactions on Zelle, you must first report it to your banking institution. Your banking institution will then better be able to assess the situation further and freeze all your bank accounts if they also catch a whiff or fraudulent activities. You can also request the money to be returned to you, but this seems unlikely, especially if you’ve authorized the payment, even if it was done under pretenses.

2) File A Police Report

Once you’ve contacted your bank and informed them of the scam on your Zelle, you can also file a police report. Provide as much information as you can and recall the details of all the steps you’ve taken thus far. You will then get a reference number, which you can use to get all the updates regarding your case. The police can also report this information to the attorney general. The attorney general can then review the report to identify illegal and fraudulent activities.

3) Contact Zelle Directly

If you’ve been the victim of fraud or a scam, you can contact Zelle directly by calling  1-844-428-8542. To report a transaction directly to your bank, you must be enrolled in Zelle through your bank or credit union. You can also report fraudulent transactions made on Zelle to the Federal Trade Commission and the Internet Crime Complaint Center. Other than contacting Zelle through a call, there’s also an online form you can submit with a complaint about the fraudulent transaction.

Frequently Asked Questions (FAQs)