New York’s attorney general is suing Zelle, claiming the money transfer app left users vulnerable to scammers who have stolen more than $1 billion.
NEW YORK — If you use Zelle to transfer money, you may want to take a closer look at your transactions. The state of New York is now suing the company, saying the popular payment app does not do enough to protect users from fraud.
New York Attorney General Letitia James claims Zelle users have lost more than a billion dollars to scammers. The lawsuit argues the app does not offer the same protections as credit cards, where fraudulent charges can often be reversed.
Consumers like Mark Fisher say they’ve been left devastated.
“I’ve never sent anyone $3,400 on my card. That’s all I had!” Fisher said.
Manhattan’s district attorney also weighed in, warning,
“If there aren’t guardrails, if there aren’t common sense fixes, we’re going to see more of these cases.”
Risks with money transfer apps
Consumer experts say Zelle is not alone. Apps like Cash App and Venmo also carry risks. According to Consumer Reports:
If you send money to the wrong person, it’s gone forever.Calls or emails claiming to be from the apps are often scams.Googling “Zelle customer service” may even lead you to fake numbers where scammers trick you into logging in and drain your account within seconds.
How to protect yourself
Consumer reporter John Matarese says Zelle, like Venmo, can be safe if you are sending money to people you know. But for business transactions, protections are limited — meaning if fraud happens, you may have little recourse.
“Be careful and don’t waste your money,” Matarese said.
Got a story idea or tip? Text us at 713-526-1111.