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‘She has TWO great points here!’: Expert reveals the real reason you may want to think twice before sending money on Zelle

‘We as banks don’t have recovery rights for that.’

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Braden Bjella

Two panel design with a woman with a headset on in one, she seems animated about her subject. The 2nd panel is of the Zelle logo on a phone.

In previous generations, if you wanted to pay someone back for something, your options were pretty much limited to cash or checks.

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However, in the modern day, there are a variety of apps that allow one to freely send money from one individual to another. Apps like Venmo, Cash App, and Zelle make transfers quick and easy—however, sometimes, that ease comes with a catch.

For example, many have shared stories about sophisticated scams taking place using Venmo, and some have claimed to have had their Cash App accounts mysteriously shut down.

Now, a fraud analyst has issued a warning about using Zelle for payments.

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Why shouldn’t one use Zelle to pay for something?

In a video with over 502,000 views, TikTok user Emmy (@emmytheanalyst), who says she is a fraud analyst, advises that viewers should “stop sending Zelles to people you don’t know.”

“Zelle is treated like a cash transaction. It is treated like, once you gave the cash to someone, that’s it, it’s gone,” she explains. “We as banks don’t have recovery rights for that, and it literally says on Zelle’s website [that] Zelle’s intention was for friends and family.”

This is true; on Zelle’s website, the company describes its service as a “fast, safe and easy way to send and receive money with friends, family and others you trust,” noting that “it’s important that you know and trust those you send money to.”

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“Stop falling for scams, stop sending money to people you don’t know and then crying and wailing and begging your bank to help you when we don’t have recovery rights,” Emmy states. 

“And Zelle, stop sending people back to their bank when you have a dispute line,” she continues. “Either tell them what to do to dispute it, or tell them you can’t help them because it was a scam. Stop just simply not taking the call and referring them back to the bank.”

Emmy isn’t the first to issue this warning

Several internet users have shared stories about Zelle scams, warning others to be careful when using the service.

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For example, one woman said that a group of teenagers stole $2,000 from her using the service. Another stated that, after listing an item on Facebook Marketplace, she was inundated with Zelle scams.

On Zelle’s website, the service notes that in cases of fraud, where someone has obtained access to your account and executed unauthorized actions, one can typically get their money back. However, in the event of a scam, in which the user authorized the payment, they are generally unable to get their money back, even if they were deceived into sending it.

@emmytheanalyst To our loyal customers….and Zelle ☺️ #wfh #wfhlife #banking #fraud #zelle ♬ original sound – emmytheanalyst

Commenters share their thoughts

In the comments section, users voiced their own concerns about Zelle and other payment transfers.

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“As a wire analyst, I can confirm not even wires can be recalled when they’re gone,” one user wrote. “Sure we can TRY to get it back, but when the branch employees ask DID YOU CONFIRM THE RECIPIENT IS SOMEONE YOU KNOW And you say YES because for whatever reason you’re embarrassed to tell them you don’t know the person for fear of questioning…. I’m really sorry but now we have to hope the recipient bank recalls it.”

”Zelle is something I’d NEVER use lol. It sucks because US Bank is like OBSESSED with Zelle for some reason,” stated another.

“I work at a bank too and the amt of people that want their Zelle limit to be thousandSSS,” offered a third. “I always tell them there’s no insurance for lost funds and it’s not meant for goods or services.”

The Daily Dot reached out to Emmy via TikTok DM and comment, and to Zelle via email.

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Update 12:17pm ET Nov. 21: In an email to the Daily Dot, a Zelle spokesperson noted that, unlike other peer-to-peer payment platforms, the Zelle network does not hold funds or manage accounts. Because of this, those who believe they may be victims of scams or fraud should contact their bank or credit union directly, as they are more able to provide assistance and are responsible for conducting investigations and reimbursing account holders when necessary.


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