I saw $2,500 vanish from my Wells Fargo account – bank gave me credit for lost cash but then balance abruptly fell to $0

AN unsuspecting Wells Fargo customer has said $2,500 vanished from her bank account due to a Zelle scam.

Julia Gibson was horrified to learn she had become a victim of the money-transfer app fraud.

3

Scammers have devised a twisted scheme where they trick consumers into sending them money with transfer appsCredit: Getty
Fraudsters pretending to be with a bank convince account holders they must use software like Zelle to save money from being stolen

3

Fraudsters pretending to be with a bank convince account holders they must use software like Zelle to save money from being stolenCredit: SOPA Images/LightRocket via Gett
Scammed Wells Fargo customers have tried to get their money back but can't because they technically verified the purchases

3

Scammed Wells Fargo customers have tried to get their money back but can’t because they technically verified the purchasesCredit: Getty

Wells Fargo customers have been speaking out about scams where fraudsters trick them into giving away money by pretending to be employees of their bank.

Scammers will reach out by text or phone call to convince customers that their accounts have been compromised and scare them into quickly sending funds.

In recent years, fraudsters have started to use the money-transfer software Zelle to pull off their schemes.

Both legitimate consumers and scammers use the app because thousands of dollars can be sent in just seconds.

However, once the funds are transferred, they cannot be taken back.

In 2020, nearly 18 million people were scammed through digital wallets and person-to-person payment apps, according to industry consultant Javelin Strategy & Research.

Despite the massive number of victims, banks sometimes fail to reimburse the customers victimized by the crimes.

In October 2021, Wells Fargo customer Gibson lost all the money in her account to a scam and was granted a provision credit from her bank, The New York Times reported.

However, in January, she was shocked to see that the credit had been suddenly taken away when the bank decided the transfer wasn’t fraudulent.

That left her account with a $0 balance and incurring overdraft fees.

“What was so frustrating about this whole thing was that the customer service rep I talked to told me so many people had been experiencing this,” she said.

The bank is said to have refunded Gibson after being contacted by The Times.

I hung the phone up on a scam caller and drove straight to my bank to report it – they said money was safe, I lost $15,000 within 30 minutes

Top tips on avoiding scams:

As scams become more sophisticated with the use of artificial intelligence, it is important you know how to spot a scam and how to avoid them.

  • Be skeptical of online deals that seem too good to be true, especially on social media.
  • Scammers will often use tactics to make you panicked so you make quick decisions – be cautious if you are told to take immediate action and verify who has contacted you.
  • Chase Bank warns customers to “never return any unexpected funds without calling Chase first.”
  • Never send money to someone you have only spoken to online or by phone as this is likely a romance scam.
  • Unless you 100% know who you are talking to, never give someone remote access to your device.
  • Never accept help from strangers at an ATM and always be vigilant when making withdrawals.
  • Do not send money or click any links indicating that you have won a prize.

Source: Chase.com

To use Zelle, a customer must link their phone number to the service.

FIGHT THE FRAUD

Because consumers are technically authorizing the purchase, the bank does not flag the transfers as fraudulent.

Instead, banks are warning customers to take extra caution whenever they are contacted by someone saying they’re with their provider.

With scams on the rise, security experts are advising customers to think twice before using payment transfer services.

“Organized crime is rampant,” said John Buzzard, the lead fraud analyst at Javelin Strategy & Research.

“A couple years ago, we were just starting to talk about it,” on apps like Zelle and Veno, said Buzzard.

“Now, it’s common and everywhere.”

Customers should know that banks will never instruct a customer to send money through Zelle or transfer funds to an overseas account.

The U.S. Sun has reached out to Zelle and Wells Fargo for comment.

Another bank customer hung up on a call after realizing it was a scam but still lost $15,000 in minutes.

Credit Gist New Today News in Newspaper Nigeria Headlines

Leave a Reply

Your email address will not be published. Required fields are marked *