Banks the world over have to contend with the rise in digital scams and skullduggery plaguing their operations at great expense.

Transactions via social media have particularly proved problematic.

Scammers are now gaming the system using the plethora of money transfer apps to make the most of their convenience features.

One of America’s leading financial institutions, Chase Bank, is now making moves to block Zelle payments because of the high volume of fraudulent transactions it has to counter.

Chase issued a statement on the matter, which read: “ If you are sending a Zelle payment from your Chase account that is identified as originating from contact through social media, we may, in our discretion, delay, decline or block that payment.”

Zelle is very popular with young Americans, who favour its ease and convenience. However, banks encounter problems ascertaining the purpose of payments, thereby posing a security risk.

Bank of America, Wells Fargo and JP Morgan Chase have combined lost close to US$900 million through fraudulent Zelle payments since the app burst onto the scene back in 2017.

JP Morgan has continually stressed that it needs a stringent protection policy to safeguard its customers from rampant fraud.

Chase Bank announced: “To help protect you from fraud and scams, the Zelle Service should be used for payments between friends, family and others you trust and should not be used to pay for goods from recipients with whom you are not familiar.”

As of March 23, 2025, Chase will be blocking some Zelle payments. It is now insisting on determining whether a payment is a fraud risk or is illegal or improper, so customers have to answer enquiries truthfully.

“Zelle should never be used to purchase goods from retailers, merchants or the like including on or through social media or social media marketplaces or messaging apps,” warned Chase Bank.