Particle.news
Download on the App Store
7 ARTICLES
·
2mo ago

Chase to Block Zelle Payments Linked to Social Media Transactions

Starting March 23, Chase Bank will restrict Zelle payments to social media contacts to reduce fraud, citing significant scam risks and lack of purchase protections.

© Martin Alonso/Wikimedia Commons
Image
Image
zelle logo on a screen

Overview

  • Chase Bank's updated policy will delay, decline, or block Zelle payments identified as originating from social media platforms or messaging apps.
  • The policy aims to protect users from scams, as 50% of fraud claims involving Zelle stemmed from social media transactions in late 2024.
  • Zelle, a widely used peer-to-peer payment app, does not offer purchase protection, leaving users vulnerable to fraud when paying untrusted contacts.
  • The change follows a Consumer Financial Protection Bureau (CFPB) lawsuit against Zelle and several banks, alleging inadequate fraud safeguards and $870 million in customer losses since 2017.
  • Chase may also require additional details about payment purposes and recipient contacts to assess fraud risks before processing transactions.