Nearly Half of All Zelle Scams at JPMorgan Chase and Other US Banks Traced To a Single Source: Report

A single company is fueling a massive volume of scams on the popular bank-owned payments network Zelle, according to a new report.

Meta Platforms, through its flagship apps Facebook and Instagram, is becoming a “cornerstone of the internet fraud economy,” reports the Wall Street Journal.

Citing people “familiar with the matter,” the WSJ reports Meta accounted for nearly half of all reported scams on Zelle at JPMorgan Chase between the summers of 2023 and 2024 – numbers that are similar across all US banks.

Internal Meta documents reportedly reveal a staggering 70% of newly active advertisers on its platforms promote scams, illicit goods or low-quality products.

The scammers are often linked to Southeast Asian crime networks that exploit Meta’s oversight, cryptocurrencies and generative AI to flood its platforms with fake ads for puppies, giveaways and bargain goods.

Meta allows advertisers up to 32 automated “strikes” for financial fraud before banning accounts, which critics say prioritizes the company’s $160 billion ad revenue stream.

Meta’s Marketplace, now larger than Craigslist, has become a scammer’s playground due to its peer-to-peer model.

Meta says it’s working with banks and tech companies to combat scams while deploying new tools like facial recognition and user warnings.

In court, the company has argued that it has no legal obligation to require advertisers to verify their identities or demonstrate that they’re licensed to sell such products.

In response to the rising scams, JPMorgan Chase recently changed its Zelle policies, warning it may decline Zelle payments stemming from contact on social media.

Generated Image: Midjourney