PHOENIX — A call from your bank, claiming there are fraudulent charges on your account. It happened to Kari.
But the person on the phone wasn't actually with Bank of America, they were a scammer, posing as an employee. However, the phone number matched the number on her bank card, so Kari didn't question the call further.
The scammer told her there were multiple Zelle transactions on her account. They asked her to hit 'OK' authorizing the transactions so the bank could then dispute them.
Kari did it and she lost more than $1,800.
"I felt sick to my stomach," she said remembering the moment the funds left her account.
Kari disputed the transactions with Bank of America's fraud department but she was denied.
Even though Kari authorized the transactions under false pretenses, since she did authorize them, the bank does not recognize it as fraud.
The Let Joe Know team reached out to Bank of America, asking if Kari's transactions would be reversed.
A bank spokesperson emailed us this statement:
It's unfortunate when people fall for scams like this. In cases like this, we attempt to get the money back from the receiving bank; however, there is no guarantee since the customer has authorized the payment. We alert clients during the transaction if they are sending money to a new recipient that they should only send to people they know and trust. Additionally, they see: "BEWARE: Bank of America will never ask you to transfer money to anyone, including yourself. Don't transfer money as a result of an unexpected text or call." To move forward with the transaction, they need to click OK. To raise awareness about potential scams, we periodically reach out to customers with information about how to stay safe and we keep clients informed about new scams through our Security Center.
Zelle's parent company, Early Warning Services, is owned by seven U.S. banks: Bank of America, Truist, Capital One, JPMorgan Chase, PNC Bank, U.S. Bank, and Wells Fargo. There are reimbursement policies in place for consumers who lose money through unauthorized transactions, but no such safeguards for people tricked by fraudsters.
"They don't have an incentive to police for fraud and scams, because they're going to make the money if the scam goes through or not. So, you got to rely on them to do it out of the goodness of their heart and big financial corporations don't do much out of the goodness of their heart," said Jamie Court, President of Consumer Watchdog.
Court says, banks need to be proactive in warning consumers about possible scams utilizing the Zelle app. Under current laws, he says most liability is falling on consumers.
"We're going to need legislators and regulators to step in and remind the banks of their responsibility to clamp down on these frauds," Court urged.
Zelle asks victims to report scams, and offers these tips:
-Watch out for spoofed texts or caller ID used in social engineering scams. If you receive a text or call from someone claiming to be your bank, power company, Amazon or other service providers, make sure to verify they are legitimate by calling them directly. For example, hang up immediately, and call the number on the website or on the back of your bank card.
-Be on the lookout for scammers calling and pressuring you to send money to yourself. Your bank will never call you asking for personal information.
-Only send money to people you know and trust. Never send money to strangers or people selling goods and services online. If you must, use a credit card for payment protection but do not use a digital payment service.
-Don't share personal details online. Avoid sharing your location, home address, phone number, and other personal information across social media. Also, don't accept friend/connection requests from people you don't know, and don't use P2P payments to transact.
-Never share one-time passcodes sent to you by your bank with anyone. Your bank will never ask for your one-time passcode.
-Sign up for any text or email alerts your bank offers. Most banks and credit unions warn of suspicious activity on your account. You can also be alerted when someone sends a Zelle payment. Immediately contact your bank directly if you suspect unauthorized activity. Please don't rely on someone telling you they sent you money. Check with your bank first.
