Zelle Scams Increasing For The Holidays

By   ISBuzz Team
Writer , Information Security Buzz | Nov 12, 2021 01:39 am PST

BACKGROUND:

This may be a good comment opp as the holiday shopping season kicks off. Although Regulation E* (part of the federal Electronic Fund Transfer Act) requires banks to refund consumers for fraudulent transactions on their accounts, banks are stating that Zelle, as a peer-to-peer app, does not have the same protection. The Consumer Financial Protection Bureau put out a directive in June, saying that Regulation E only applies “if a third party fraudulently induces a consumer into sharing account access information.” So the working assumption is that if a consumer willingly sends money to a faked/spoofed account, they’re out of luck.