Traditional bank JPMorgan Chase restricts Zelle transfers initiated via social media platforms following $206.8 million in scam losses.
Headline: JPMorgan Chase Cracks Down on Zelle Scams Linked to Social Media
Stop the Scammers! Big Banks and Zelle Take Action Against Fraudulent Transactions
Remember all those times you clicked on a social media ad promising a quick buck or a new dream product? Well, guess what? They weren't dreams - they were scams, and now one of the biggest banks in the USA is doing something about it.
inthe US, JPMorgan Chase is giving a tough message to the grifters trying to navigate Zelle's waters. They've started blocking transactions that originate from social media platforms due to the high volume of scams reported, with hundreds of millions of dollars lost[1][2].
When you try to send some cash via Zelle to someone who seems to be a social media acquaintance, get ready for some red flags - nasty pop-up messages warning of the risks[1]. Melissa Feldsher, JPMorgan’s head of payments and lending innovation, is clear: stop sending money to unknown people met on social media!
Instead, Feldsher recommends using payment methods offering purchase protection, like debit or credit cards, for unacquainted transactions[1][3]. Advice well received, we say!
While this move by JPMorgan Chase is a significant stride in the fight against Zelle-related scams, they aren't alone in this battle. Back in July, a Senate report showed that $207 million in Zelle payments were disputed as scams at JPMorgan Chase, Bank of America, and Wells Fargo, with the vast majority of those losses being unreimbursed[1].
So, as you're swiping through your newsfeed, keep an eye out for that scammer posing as your long-lost friend trying to send you money through Zelle. Your bank appreciates the heads up!
Want to stay in the crypto loop? Keep an eye on The Daily Hodl for hot updates from the world of finance, including crypto, Bitcoin, ethereum, Web 3.0, and more[4][5].
References:
[1] https://money.cnn.com/2023/03/23/news/companies/jpmorgan-chase-zelle-scams/[2] https://www.zdnet.com/article/jpmorgan-chase-starts-blocking-zelle-transactions-sent-through-social-media/[3] https://www.forbes.com/sites/kararestrepo/2023/03/24/jpmorgan-chase-blocks-zelle-transactions-linked-to-social-media-accounts/?sh=3adf8dea79e4[4] https://thedailyhodl.com/[5] https://twitter.com/TheDailyHodl
Categories:
Bitcoin, Ethereum, Trading, Payments, Scams, Zelle, JPMorgan Chase, Finance, Cryptocurrency, Crypto Scams, Social Media, Fraud, Credit Cards, Banking
In the realm of finance and cryptocurrency, JPMorgan Chase's crackdown on scams through Zelle serves as a watershed moment for the industry. This action comes amidst losses of hundreds of millions of dollars linked to social media-originated transactions, leading more businesses to consider altcoins and blockchain technology as more secure options. Meanwhile, it's essential to practice caution when relying on banking-and-insurance services for cryptocurrency transactions, as the fight against scams continues in the cryptocurrency world, much like the traditional finance industry. Remember to stay informed and diligent as you navigate this evolving landscape.
