Zelle says scams can be reimbursed, but what qualifies under new policy?

CHARLOTTE — Zelle introduced a new policy last year to help victims of scams get their money back, but some customers are learning their cases may not qualify.

Angie reached out to Action 9 after someone called her husband, and she said, “The number said, ‘Wells Fargo.’”

So he picked up. She says the caller pretended to be with the bank’s fraud department and asked if they had made certain questionable transactions. Her husband said no.

“They’re like, ‘Don’t worry. We’re going to make you whole,’” she said.

She says the caller walked him through a complicated set of steps -- using Zelle -- to allegedly get their money back. But she says it was all a con to steal their money instead, similar to what Action 9′s Jason Stoogenke has warned you about in the past.

“In the end, it came out to be about $4,000,” she said. “It’s a lot of money and it was a time bills were coming due, I have a daughter in college, I have things to do. And it’s a lot of money just to be thrown away.”

You may recall some banks have been hesitant to reimburse customers in these cases. But then -- last November -- Zelle announced a new policy: banks “must reimburse consumers for qualifying imposter scams.”

Many saw it as the company getting tough on banks, despite the word, “qualifying.”

Fast forward to now. Stoogenke exchanged emails with Zelle.

It told him, “The banks and credit unions on the Zelle Network follow consumer reimbursement policies that go above and beyond applicable legal and regulatory requirements. Under the Rules, not every case of a scammer impersonating a bank qualifies for reimbursement. Not every case of a scammer impersonating a bank qualifies for reimbursement.”

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So which cases do qualify? The company emailed, “We cannot share our criteria, as it would provide a roadmap to criminals.”

Angie’s case didn’t qualify. Wells Fargo denied her claim.

The bank didn’t give Action 9 details, just saying, “We deeply empathize with those affected by financial scams. Safeguarding our customers’ assets is our top priority. We have robust security measures in place and conduct thorough investigations when fraud or scams are reported, before making a claim decision. Along with the industry, we have taken significant action to combat scammers, which includes raising awareness of common scams to help prevent these heartbreaking incidents.”

But Angie showed Action 9 a letter, saying it was because she or her husband authorized the transaction, the same reason many consumers have had trouble getting refunds all along.

The bottom line is banks ‘may’ be more likely to reimburse scam victims now, but still know this: there’s no guarantee yours will give you money back. So be really careful if someone calls you, saying they’re from your bank’s fraud department, urging you to take some action right then and there.

Wells Fargo offers this information:

When a customer files a claim, we thoroughly review all information provided to us by the customer, as well as our own records and make a decision on their claim using the same Zelle rules, applicable laws and regulatory guidance followed by all banks.
Protecting customers from possible scams is incredibly important to us, and we have made significant investments and continued commitments towards identifying bad actors engaging in fraudulent activity and scams.
Among the ways we’re helping customers avoid scams is through warning notifications and required authentication steps before a customer can complete a Zelle transaction through the Wells Fargo Mobile app or Online Banking.
It’s important to note that when a customer initiates a Zelle payment to a new recipient, they are required to provide and verify the recipient’s information, which could include the recipient’s mobile phone number, or email address. They are provided multiple opportunities to correct this information.
Customers who are sending money to a new recipient will see a confirmation prompt with the legally registered first name of the account owner so they can check it against the recipient name they entered.
There are several warning notifications and authentication steps required before a customer can complete a Zelle transaction through the Wells Fargo Mobile App or Online Banking including:
We alert customers to be on the lookout for scams and provide information about red flags to watch out for.
Warning notices appear before the customer can move on to additional steps in the Zelle process. The customer must click to acknowledge that “I’m sure this isn’t a scam, and I’d like to make this payment.”
Customers who are sending money to a new recipient will see a confirmation prompt with the legally registered first name of the account owner so they can check it against the recipient’s name they entered. This prompt also reminds our customer to only send money to people they know and trust.
Before customers can finalize and send a payment, they view another alert that states “Be sure before you send…Once you send this payment, you can’t cancel it.”
There is an additional confirmation step that you must acknowledge prior to sending the funds.
We inform customers that Zelle is an immediate form of payment, just like cash. Scammers who receive payments from victims typically withdraw the funds from their financial institution immediately, making recovery difficult.

Tips for viewers:

Wait & Validate: Scammers will try to rush you into taking action, so you won’t take time to stop, think, and verify facts.
Verify Recipient: Only send money to someone you know, trust, and can confirm their identity. Once you approve sending the funds, the money leaves your account and is often unrecoverable.
Don’t Trust Caller ID: Scammers can spoof legitimate phone number by altering caller ID.
When in doubt, stop and get help: If you are uncomfortable with a request received by phone call or text that you didn’t initiate, don’t respond and hang up immediately. Contact the company using legitimate sources.
Common scammer tactics include asking you to provide sensitive personal information or to send money to help stop a phony transaction or receive a refund.
Your bank won’t ask you to send a payment to prevent or stop fraud in your account. If you get a call asking for that, immediately hang up and call your bank directly.

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