Beware of Zelle scams - USAA can but won't help

Why doesn't Zelle offer any scam or fraud protection? Why are banks promoting a service that has all the disadvantges of Bitcoin? When you send money with Paypal, there are protections for both the sender and receiver, just like most areas of banking. If I pay a merchant with a credit card, the bank will intervene in the case of fraud or scams. If I mail someone a check, I can put a stop payment on the check. Even if I mail someone cash, I have a physical address that I can give to the police if it turns out there is fraud. But in the case of Zelle, there is none of that. All you have is an email address or phone number and no way to determine who actually owns the email address or phone number! So if you mistype one digit of the email or phone number, or if it turns out the recipient is just a crook, the sending bank won't intervene or assist at all, they won't even tell you who the receving bank was, even though they know exactly who they sent the money to - another U.S. bank with a known account holder. So Zelle has all the disadvantes of Bitcoin - it is anonymous and irreversible, and like Bitcoin, it is the perfect tool for scams, frauds, and illegal trades.


There are a lot of ways to lessen the chance of being robbed, but in this case, the banks can easily intervene and reduce these crimes, and even help prosecute them. Instead we blame the victim and say: Well, you shouldn't ever send money to someone you don't know. That's like saying: You shouldn't have worn that dress, or walked down that alley at night. It's absurd.


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