I’m an avid podcast listener while I work out.

One of my favorites is Clark Howard. His information helps folks gain more financial knowledge, and financial security.

Recently, Howard was on a tirade about Zelle. Zelle is an app that was created in 2017 by 7 of America’s biggest banks to allow instant digital money transfers.

Zelle is embedded in the banking apps and is now the country’s most widely used money transfer service. In 2021, people sent $490 billion through Zelle, with $230 billion through Venmo.

We love payment apps like Zelle because they’re free, fast and convenient.
But Zelle is also a favorite of crooks!

Other types of bank transfers or transactions involving payment cards typically take at least a day to clear. But with Zelle, they can steal thousands of dollars in seconds!

And there’s no way for customers (so the banks say), to retrieve their stolen money.

According to Javelin Strategy & Research, an industry consultant, nearly 18 million Americans were defrauded through scams involving digital wallets and person-to-person payment apps in 2020 alone.

Armed with my limited (Clark Howard) knowledge, I went to Willie and said, “we must remove Zelle from all our accounts.”

Willie was not feeling it! Finally, he gave in to my fear after we consulted our business and personal banks.

PS: Willie thinks I overreact to anything related to money and that I’m always thinking someone is trying to scam us!

However, at the wedding of his nephew, I met a relative who is a director of compliance for a national credit union. Of course, I asked, “What do you think of Zelle?”

Her response, “the banks and credit unions are aware of the widespread fraud on Zelle. It’s not clear who is legally liable for the consumer losses, but the consumer usually loses their money.” I motioned to Willie to come closer and had her repeat her comments.

So, why am I talking about Zelle?

A major goal for most folks is financial security - financial independence. And securing our money and protecting our hard earned dollars from scammers...even if the vehicle is attached to our bank is a MUST!

Do your own research about Zelle and the other payment apps. In fact, investigate their security features and what happens if your money is stolen.

Our customers have shared how they’ve lost money through Cash App, Venmo and Zelle. “Organized crime is rampant,” said John Buzzard, a lead fraud analyst for Javelin Strategy & Research which is an independent financial services research and insights firm.

They pinpoint “dynamic risks” and opportunities and solve clients’ business challenges in the areas of payments, digital banking, fraud and security, and wealth management. Wow! And that’s a mouth full.

Buzzard says fraud is common with Zelle and Venmo. Swindled customers, already upset to find they can’t get their money back through their bank, become outraged to find that Zelle is owned and operated by banks.

The Zelle network is operated by Early Warning Services, a company created and owned by seven banks: Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo. Wow!

Early Warning, based in Scottsdale, Ariz., manages the system’s technical infrastructure. Peter Tapling, a former executive at Early Warning, now a payments consultant, said banks haven’t done enough to educate customers about the risks of Zelle. The 1,425 banks and credit unions that use Zelle can customize the app and add their own security settings.

He says we should treat Zelle like cash. “Don’t hit the button to send your money unless you would hand this person $100 and walk away, because the moment you send it, it’s gone.”

Tapling says we don’t know how much fraud takes place through Zelle because banks aren’t required to publicly report their losses. That’s another WOW!

Police reports and dispatches from industry analysts make it clear that Zelle has become a preferred tool for romance scammers, cryptocurrency con artists and those who prowl social media sites advertising concert tickets and purebred puppies — only to disappear with buyers’ cash after they pay.

As a thriving business, we take all forms of payment. Our goal is to make it easy for potential customers to purchase from us.

But as we continue to grow our profits and build our financial independence, we are very mindful of the behaviors of those who would try to steal those monies we worked so hard to earn!

And likewise, you must be vigilant to protect your finances from scammers so that you meet your own financial goals.

Need a one-on-one accountability partner, encourager and/or coach?