Safeguarding Against Cybercrime: How Instant Payment Platforms Like Zelle and Cash App Fuel Online Financial Scams
Blog
October 30, 2025
by
Laurel Sykes
Summary¶
- Cyber-enabled scams are rising fast, with $13.7 billion in losses reported in 2024—driven by impersonation, business email compromise, and investment fraud.
- Instant payment platforms like Zelle and Cash App are frequently exploited by scammers due to their speed and lack of transaction reversibility.
- Overpayment scams on platforms like Facebook Marketplace are targeting sellers with fake checks and urgent refund requests via Zelle.
As we discussed last week, we continue to receive reports from business clients regarding CEO wire scams, online account takeover, and vendor email compromise. Financial crime continues to evolve, with cyber-enabled scams at the forefront of criminal activity. In 2024, total reported losses for cyber-enabled crimes reported to the FBI’s Internet Crime Complaint Center (IC3) were $16.6 billion, a 33% increase from 2023. A significant portion of these losses, nearly 83%, were due to cyber-enabled fraud, which alone accounted for $13.7 billion. Investment fraud was the single costliest category, followed by Business Email Compromise (BEC).
Consumer clients are also reporting impersonation scams and relationship scams, often originated through social media. One of the first red flags is a request for payment through an instant channel, such as Cash App or Zelle. Zelle has been a popular channel for fraud, especially as Artificial Intelligence has made it easier for criminals to impersonate friends and family on social media or through email. Fraudsters also reach out on social media platforms by pretending to be in the market for a new friend or romance. We’re also seeing multiple reports of overpayment scams targeting sellers on channels such as Facebook Marketplace or Instagram.
The Scenario: When a "Friend Request” Isn't Really from your Friend¶
Imagine receiving a message on Facebook from someone you believe to be a close friend. The message is friendly and familiar, and soon, your “friend” asks for a favor: they need funds urgently and request you send money via Zelle. Trusting the source, you agree and send the requested amount. You even ask your brother for help, and he sends money too.
Later that day, you receive a phone call. The voice on the other end sounds just like your friend, reinforcing the urgency of the situation. The caller reassures you, and you feel confident you are helping someone you care about.
However, when you speak to your real friend in person, you discover a shocking truth: she never made the request. Her Facebook account was compromised, and scammers used sophisticated AI technology to mimic her voice, convincing you and your brother to send money to fraudsters.
How the Scam Works: Social Engineering Meets AI¶
Scammers are increasingly blending time-tested social engineering tricks with cutting-edge technology. Here’s how this type of fraud typically unfolds:
- Facebook Account Compromise: Scammers gain access to a person's Facebook account, either through phishing, weak passwords, or other methods. Once inside, they target the victim’s friends, sending messages that seem genuine.
- Personalized Requests: The impostor leverages details available on the compromised account to make the request convincing. Messages are crafted to match the tone and style of the real friend.
- Zelle Transfers: Victims are asked to send money via Zelle, a platform known for its speed and convenience but also for its irreversible transactions.
- AI Voice Cloning: In some cases, scammers use AI-powered voice technology to mimic the friend’s voice, making phone calls that sound eerily authentic and further lowering the victim’s defenses.
Another Scenario: When a “New Friend” Suddenly Asks for Money¶
Relationship scammers often create fake profiles using attractive or friendly images and send connection requests or direct messages to unsuspecting users. Once they establish contact, these scammers quickly try to build rapport, sometimes engaging in friendly conversation or showing interest in your hobbies and daily life. Their goal is to gain your trust and lower your guard.
How the Scam Works: They First Build Trust, then ask for Money¶
- Beware if they say they can’t meet you in person. They might say they’re living or traveling outside the country, working on an oil rig, in the military, or working with an international organization.
- After a short period of interaction when they feel they have gained your trust, the impostor may invent a story that requires your help, often asking for money due to an "emergency" or a sudden financial crisis. They may ask for your help to pay medical expenses (for them or a family member) or buy their plane ticket to visit you. They may even offer to help you get started in cryptocurrency investing. Because the scammer has taken the time to appear genuine and relatable, victims may feel compelled to assist.
- These imposters frequently use fast-transfer platforms like Zelle or Venmo to request funds, making it difficult to recover money once it has been sent. Cash App is also a favorite money transfer platform of scammers. They may also tell you to wire money through a company like Western Union or MoneyGram, put money on gift cards (like Amazon, Google Play, iTunes, or Steam) and give them the PIN codes, or even invest in cryptocurrency.
Another Common Threat: The Overpayment Scam¶
In addition to impersonation scams, overpayment scams are becoming increasingly common on platforms like Facebook Marketplace, Instagram, and "Buy & Sell" groups. In fact, some of the larger banks have actually restricted the ability to use Zelle to make payments to retailers originating from Facebook.
How the Scam Works: Fake Checks in Unexpected Amounts¶
- Imagine you are selling a piece of furniture online. A prospective buyer quickly expresses interest and offers to pay more than your asking price, claiming the extra funds are to cover the cost of a moving company that will pick up the item. The buyer sends you a check that appears to be a cashier’s check drawn off another bank.
- Soon after, the buyer contacts you, explaining that you need to send the extra money via Zelle to a third party—often claiming it’s the moving company or a shipping agent—before their payment can be completed. Trusting the process, you send the money, only to later discover that the original payment never actually arrived in your account. The scammer disappears with your funds, leaving you without the item and out of pocket for the supposed overpayment.
Warning Signs and Red Flags¶
These scenarios demonstrate how scammers exploit trust and urgency, leveraging recognizable platforms and payment methods to manipulate victims. While scams are getting more sophisticated, there are still warning signs you can watch for:
- Unexpected requests for money, especially via fast-transfer platforms like Zelle.
- A buyer who asks you to transfer money on their behalf, especially if they overpay for your item.
- Messages or calls with a sense of urgency or secrecy (“Don’t tell anyone else”).
- Slight differences in writing style, grammar, or word choice in messages.
- Phone calls from a “friend” whose voice sounds slightly off, or whose conversation feels scripted.
- Requests from an account that has recently changed social media profile information or behavior.
- A new contact on social media where the conversation quickly turns personal or involves requests for money.
What to Do if You’re Targeted¶
If you suspect you’re being targeted by a scam, always contact your friend directly using another communication method (such as their real phone number) before sending any money. You can also call the bank who issued the check you may have received for selling an item. Oftentimes, they are counterfeit, and will “bounce” several days later.
Taking Action if You’re a Victim¶
If you believe you’ve been defrauded via Zelle, act quickly to maximize your chances of recovering your funds:
- Contact Your Bank Immediately: Reach out to your financial institution’s fraud department as soon as possible. Provide all details about the transaction and explain that you suspect fraud.
- Report Directly to Zelle: Visit Zelle’s support page for guidance on reporting scams and unauthorized transactions. Zelle may offer additional steps or resources depending on your bank’s policies.
- Report compromised accounts to Facebook: You can report the profile it is being used to impersonate a friend. You can also report the profile if it is being used in a scam.
- Alert Others: Inform your contacts about the scam so they can be cautious as well.
- Preserve All Evidence: Save transaction receipts, message screenshots, phone numbers, transaction details, and any correspondence with the scammer. This documentation will be vital for investigations.
- File Formal Complaints: In addition to notifying your bank and Zelle, consider filing a complaint with the FBI’s Internet Crime Complaint Center (IC3) and the Federal Trade Commission (FTC).
- Monitor Your Accounts: Keep a close eye on your banking activity for further suspicious transactions and report anything unusual right away.
Prompt reporting through both your bank and Zelle enhances your chances of stopping fraudulent transfers and may help prevent further losses. Always act quickly and follow up persistently until your case is resolved.
How to Protect Yourself¶
Staying vigilant can help you avoid falling victim to these increasingly sophisticated scams:
- Secure Your Accounts: Use strong, unique passwords and enable two-factor authentication on all social media and financial accounts.
- Be Skeptical: Treat unexpected financial requests—even from friends—with caution. Always verify before acting.
- Verify the identity of anyone claiming to be a new friend: Check their profile for inconsistencies or reaching out through other channels before responding to any financial requests.
- Limit Information Sharing: Be mindful of what you post online, as scammers can use personal details to make their impersonation more convincing.
- Educate Yourself and Others: Stay informed about the latest scam tactics, and share knowledge with friends and family.
- Monitor Account Activity: Regularly check your accounts for suspicious activity and report anything unusual immediately.
As technology evolves, so do the methods scammers use to exploit trust and familiarity. The combination of social engineering and AI voice cloning presents new challenges, making it more important than ever to stay alert, verify requests, and protect your accounts. Remember, a few moments of caution can save you from financial loss and emotional distress. Stay informed, stay skeptical, and always double-check before sending money—especially when the request comes from someone you know online.
Previous: Santa Maria State of the City 2025
