Chase Blocks Zelle Payments to Social Media Contacts: A Scam-Busting Move or Tech Tantrum?
JPMorgan Chase is putting the brakes on Zelle payments to social media contacts, hoping to stop fraudsters from turning online scams into a thriving side hustle. So, next time you try to send money to that “too good to be true” deal, Chase might just save you from buying a bridge in Brooklyn!
Hot Take:
Chase has finally decided to pull the plug on social media Zelle payments, which means those ‘Hey, I have a great investment opportunity for you!’ messages might finally come with a side of buyer’s remorse. It’s about time someone told these online scammers to take a hike – preferably without their internet connection!
Key Points:
- Chase is blocking Zelle payments to social media contacts to combat rising online fraud.
- Zelle is a popular payment network integrated into many US banking apps but lacks purchase protection.
- Almost 50% of Chase’s reported scams were linked to social media between June and December 2024.
- Chase’s move follows a lawsuit by the CFPB against Zelle’s operator and owner banks.
- CFPB claims banks rushed Zelle to market, leading to over $870 million lost to fraud.
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