"Move your money to keep it safe": bank impersonation and Zelle scams, and who refunds

What's happened

One of the costliest scams in the US starts with a message that seems to come from your bank: a text asking whether you made a large purchase, or a call from the "fraud department" saying your account has been hacked. The caller then tells you to move your money to a "safe" account, often with Zelle, a wire transfer or cash.

The Federal Trade Commission said on August 7, 2025 that reports from older adults who lost $10,000 or more to impersonation scams like this had risen more than fourfold since 2020. Losses among those who lost more than $100,000 rose from $55 million in 2020 to $445 million in 2024. The FBI's 2025 Internet Crime Report logged about 4,700 complaints of account takeovers by criminals posing as bank support staff, with about $360 million lost.

Who's affected

Anyone with a bank account and a phone. Scammers can spoof caller ID so the call shows your bank's real number, and many already know your name and part of your card number.

What banks and Zelle have to refund

The key question is whether you authorized the payment.

• Unauthorized transfers (a criminal gets into your account and sends money himself) are covered by federal Regulation E. Report within two business days of finding out and your liability is capped at $50, or $500 if you're slower. Zelle's January 2026 fact sheet says its banks must fully reimburse confirmed fraud after a reasonable investigation.
• Authorized payments (you were tricked into sending the money yourself) aren't covered by those rules. Since June 30, 2023, Zelle has required its banks to reimburse "certain qualifying imposter scams" where the customer authorized the payment. Zelle hasn't published a full list, but reporting at the time said it covers scammers posing as banks and some other trusted organizations. Otherwise, Zelle says, the money "is often unrecoverable."

Where the lawsuits stand

The Consumer Financial Protection Bureau sued Zelle's operator, Early Warning Services, plus JPMorgan Chase, Bank of America and Wells Fargo in December 2024, alleging more than $870 million in fraud losses. It dropped the case in March 2025, and the court dismissed it for good.

New York's attorney general, Letitia James, then sued Early Warning Services in state court on August 13, 2025, alleging users lost more than $1 billion to fraud. In July 2026, a Manhattan judge refused to dismiss the case. Zelle called it politically motivated and said it would appeal.

What it means in dollars: a worked example

This is an illustration, not a real case.

Denise gets a text: "Did you attempt a $1,249 purchase? Reply YES or NO." She replies NO. Minutes later her phone shows her bank's number. The caller says a thief is draining her account and she must send her $4,800 balance by Zelle to a "secure account" in her own name. It belongs to the scammer.

Because Denise pressed send, the unauthorized-transfer rules probably won't help. Her best chance is to call her bank at once, say she was tricked by someone posing as the bank, and ask for a refund under Zelle's impostor scam policy. If the scammer had logged in and sent the money himself, reporting it within two business days would have limited her loss to $50.

What to do now

1. Hang up and call back. Use the number on the back of your card or in your banking app.
2. Never move money to "protect" it. Your bank won't ask you to send money to yourself, a new account, a Bitcoin ATM or a courier. The FTC says never send money in response to an unexpected call or message.
3. Never share one-time codes. Anyone asking for one is trying to get into your account.
4. Only use Zelle with people you know, trust and can confirm, as Zelle itself advises.
5. If you've paid, act today. Call your bank, explain it was an impostor scam, and ask in writing for a refund. Report it at ReportFraud.ftc.gov and ic3.gov. If the bank refuses, complain to your state attorney general.

For more, see our story on the FTC's latest fraud figures for older adults.

FAQs

Can a scammer really show my bank's number on my phone?

Yes. Caller ID can be spoofed, and Zelle warns about it. Always hang up and call a number you know is real.

Will my bank refund me if I sent the money myself?

Maybe. If the scammer posed as your bank and you paid with Zelle, ask whether it counts as a qualifying impostor scam. Other payment apps and wire transfers have their own policies, and many don't refund authorized payments.

Is Zelle safe to use?

For paying people you know, yes. Zelle says more than 99.95% of payments are now completed without any report of fraud or scams. The danger is paying a stranger because of a call or text.

Sources: FTC press release (August 7, 2025), FBI IC3 2025 Internet Crime Report, Zelle fact sheet: Zelle and scams (January 2026), NBC News: Zelle begins refunds for imposter scams, CFPB: Regulation E, section 1005.6, CFPB: Zelle lawsuit and dismissal notice, New York Attorney General (August 13, 2025), Insurance Journal: judge says Zelle must face New York suit (July 24, 2026)