Wells Fargo Customer Loses Thousands in Zelle Scam

Scammer Poses as Wells Fargo

Eileen Loughran, a Wells Fargo customer from San Francisco, received a text message from what appeared to be Wells Fargo asking about a $957 transfer through Zelle. She replied “no” and immediately received a call from a number displayed as “Wells Fargo Fraud Alert.”

The scammer on the line convinced Loughran that her account was compromised and urged her to make eight Zelle transfers to protect her funds. After the transfers were complete, the call ended, and Loughran realized she had been scammed.

Wells Fargo Denies Responsibility

Loughran contacted Wells Fargo, but the bank denied responsibility for the loss, claiming that she authorized the transactions. Wells Fargo stated that they follow the same Zelle rules and regulations as other banks when investigating fraud claims.

Zelle’s Inconsistent Reimbursement Policy

Zelle has implemented a new process for helping victims of impersonation scams. However, Loughran was told that she was not eligible for reimbursement in her case. Zelle declined to provide a reason for the inconsistency in their reimbursement policies.

Widespread Scam

Similar Zelle scams have affected thousands of bank accounts, resulting in an estimated $500 million stolen in 2022. Zelle is owned by Early Warning Services, LLC, which is co-owned by seven of the country’s largest banks, including Wells Fargo.