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Zelle doesn’t offer dedicated business accounts, but that hasn’t stopped freelancers from using it to receive payments for their work. At the same time, scammers have found countless ways to exploit Zelle’s convenience — because what could be easier than turning trust and urgency into fraudster’s tools of trade? This guide, brought to you by Moonlock, MacPaw’s cybersecurity division, dives into the art of Zelle scams, revealing their tricks and, most importantly, how you can outsmart them.

Why use Zelle for business?

Zelle is the Swiss army knife of payment apps — simple, fast, and versatile. Some small businesses rely on it to pay suppliers and collect customer payments. And some freelance workers love it for getting paid almost as quickly as they finish the job. Even retailers and service providers, from salons to repair shops, benefit from Zelle’s seamless payment process, which keeps their transactions smooth and their customers happy.

The setup is refreshingly straightforward: businesses link their bank account to Zelle via their bank’s app or online platform. Payments are sent using a phone number or email, making it easy for clients to transfer funds directly into the business bank account. This transparency and ease of use help businesses build trust while keeping the payment process hassle-free.

What’s in it for scammers?

Zelle’s seamless integration with banks might give you the impression it’s scam-proof. After all, what could go wrong with something directly tied to financial institutions? Unfortunately, that assumption is as risky as leaving your front door open. Unlike platforms like PayPal, Zelle skips the holding stage, transferring money directly between accounts without pause or verification. Once the funds leave your account, there’s no intermediary to step in, no safety net to catch a fraudulent transaction. And since Zelle doesn’t charge transaction fees, it lacks the financial reserves to cover fraud losses, making it even harder to recover stolen money.

Scammers, ever the opportunists, know these vulnerabilities inside and out. From impersonating Zelle emails to creating near-perfect copies of banking websites, their schemes are as convincing as they are cunning. Falling victim doesn’t mean you’re careless –– these scams are designed to outsmart even the most cautious users. The key to staying safe? Knowing the risks and recognizing the red flags before it’s too late.

5 common Zelle scams to know about

From fake account upgrades to phishing emails, scammers on Zelle know how to hit where it hurts. Understanding these tactics can help you stay one step ahead and protect your finances.

Account upgrade

When you receive a payment from a new client, an email might follow claiming you need to deposit additional funds to "upgrade" your account. Pause right there! This is a red flag. Zelle doesn’t offer account upgrades, and chances are no payment was ever sent. Scammers count on you skipping the step of checking your bank statement and trusting the email at face value. As a result, you end up sending money out of your own pocket for a payment that was never real. 

Phishing messages

Zelle scams often use phishing, fraudulent messages designed to steal your information or access your accounts. These scams appear as urgent emails, texts, or calls pretending to be from Zelle support, tricking you into clicking fake links or sharing sensitive details.

Watch for unusual language, spelling errors, or unfamiliar email domains. Remember, Zelle only uses the domain @Zellepay.com, never common ones like @gmail.com or @yahoo.com. Always check the sender’s email address to confirm its legitimacy.

Job scams

Searching for the next great gig can be exhausting, so when a promising opportunity comes along, it’s tempting to jump on it. But beware of fake job postings and illegitimate recruiters that are increasingly common. These scams often trick contractors into sending money or sharing sensitive information through email, social media, or popular job sites.

Scammers may request upfront fees for training, equipment, or background checks for contractors. Remember, a legitimate client will never ask a freelancer to pay for a job. Be cautious of agencies offering to find you work in exchange for compensation –– they might be scammers posing as recruiters.

Money mules

Money mule scams involve unaware individuals transferring stolen money on behalf of scammers, making the fraud harder to trace.

These scams often disguise themselves as fake job offers, investment opportunities, or prize winnings. A scammer might claim they can’t receive funds through their usual payment method and ask for your help. In reality, they’re using you to move stolen money via Zelle, turning you into a middleman and potentially exposing you to legal risks.

Pay yourself

One common scam involves a scammer calling you, claiming there’s an issue with your account. They’ll instruct you to “transfer” money to yourself through a Zelle link they provide, assuring you it’s a fix. This is a major red flag. In reality, the funds you think you’re sending to yourself are going straight to the scammer.

Here’s how they pull it off: when you enroll with Zelle, your bank sends a security code to verify your identity. The scammer will convince you to share this code, claiming it’s needed for the transfer. Once they have the code, they can enroll their own bank account with Zelle using your email or phone number. The money you send doesn’t go to you but directly to them.

How to protect yourself from Zelle scams

Although scammers are always finding new ways to target your money, there are practical steps you can take to protect your accounts and keep your funds secure. Here are some essential tips to help you stay safe.

Explore the Zelle FAQ

Who better to guide you on staying safe than the experts behind the platform? Zelle offers a comprehensive library of videos and FAQs to help users recognize common scams and protect their money. Moonlock highly recommends visiting the Understanding Scams page, where you can learn about 14 specific tactics criminals use on Zelle and how to avoid them.

Check your credit reports

Zelle scams often hinge on phishing messages designed to trick you into acting without hesitation. These messages might claim there’s a problem with your account or payment, pressuring you to take immediate action. Instead of following their instructions blindly, take a moment to verify the claim. Log in to your banking account and look for unfamiliar transactions, unusual account activity, or changes to your credit report that you don’t recognize. 

Don’t click on links

Never click on links in messages claiming to be from Zelle, no matter how legitimate they appear. These phishing messages may look urgent, claiming issues with your account or a pending payment, but their goal is to manipulate you into clicking without thinking. Instead of clicking, open your banking app or visit the payment platform’s official website to verify any claims. 

Don’t trust overpayment claims

Be cautious of anyone claiming to have accidentally overpaid you through Zelle and asking for a refund of the extra amount. This is a common scam where no actual payment was made, but the scammer hopes you’ll trust their story and send money back. Always verify such claims by checking your transaction history in your banking app to confirm whether the alleged overpayment exists. Legitimate senders won’t pressure you to act immediately or bypass proper channels. By staying skeptical and verifying the facts, you can avoid falling victim to this overpayment scam and protect your hard-earned money.