Traditional Bank JPMorgan Chase Implements Restrictions on Zelle Transactions Initiated through Social Media Following Massive $206.8 Million Scam Loss.
Title: Zelle Scam Warning: JPMorgan Chase Cracks Down Due to Soaring Scams
Welcome to your daily dose of digital finance news! Today, we discuss a significant move taken by one of the largest banking giants in the US—JPMorgan Chase—in light of the escalating number of scams facilitated through payments platform, Zelle.
JPMorgan will not let Zelle scammers pull a fast one anymore. In response to hundreds of millions of dollars reportedly lost through Zelle scams, the bank has decided to put the brakes on dubious transactions initiated through social media platforms. Users attempting to send money to unfamiliar individuals from social media will be met with alerts from the bank.
According to Melissa Feldsher, JPMorgan's head of payments and lending innovation, more than half of all Zelle scams originate from social media platforms, where interactions between people who don't know each other often lead to money exchanges. Instead of relying on Zelle for sending payments to strangers, Feldsher suggests using debit cards, credit cards, which come with purchase protection provided by JPMorgan. In Feldsher's opinion, Zelle should not be used for sending money to people you've never met or for transactions involving products or services you've yet to validate.
Recent investigations revealed that $207 million worth of Zelle payments were marked as scams from customers at big banks like JPMorgan, Bank of America, and Wells Fargo. Unfortunately, the majority of those funds went unreimbursed[1].
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Sources:
[1] JPMorgan begins blocking certain transactions on Zelle after $207 million in scams. (May 5, 2025). The Daily Hodl. Retrieved from [https://www.thedailyhodl.com/2025/05/05/jpmorgan-begins-blocking-certain-transactions-on-zelle-after-207-million-in-scams/]
[3] Senate report on Zelle scams: Banks shouldn't be allowed to exploit consumers like this, Democrats say. (July 7, 2022). CNBC. Retrieved from [https://www.cnbc.com/2022/07/07/senate-report-on-zelle-scams-banks-shouldnt-be-allowed-to-exploit-consumers-like-this-democrats-say.html]
[5] CFPB investigating Zelle amid complaints of consumer scams. (April 19, 2021). Yahoo Finance. Retrieved from [https://finance.yahoo.com/news/cfpb-investigating-zelle-amid-complaints-043000915.html]
- In an effort to combat soaring scams, JPMorgan Chase is cracking down on transactions initiated through social media platforms using the Zelle payments system.
- Unfamiliar individuals from social media attempting to receive money through Zelle will be met with alerts from JPMorgan, suggesting using debit cards or credit cards for safer transactions.
- JPMorgan Chase's head of payments and lending innovation, Melissa Feldsher, reported that more than half of all Zelle scams originate from social media interactions that lead to money exchanges with strangers.
- According to investigations, $207 million worth of Zelle payments were marked as scams, and unfortunately, the majority of these funds went unreimbursed.
- In the world of cryptocurrency, various announcements and developments are taking place—including the launch of Pepeto, the initiation of BC.GAME's social mining campaign, and the securing of funding for aZen's DePIN project.
- Meanwhile, the finance, business, and banking-and-insurance industry is grappling with the ongoing issues of scams and breaches, as reported in a Senate report and investigations by the Consumer Financial Protection Bureau.
