Reg E and New Version of the Zelle, P2P Fraud Scam

In the new version of the Zelle / P2P fraud scam, fraudsters con Zelle users into using Zelle to transfer funds to themselves using their mobile phone number under the guise that the transfer will replace funds stolen from the users’ accounts; however, the transfers go to the fraudsters. An attorney with the Consumer Financial Protection Bureau (CFPB) has shared informal non-binding guidance on whether consumers are entitled to protection under Reg E. This is a follow-up to the RISK Alert, Fraudsters Change Tactics in Zelle / P2P Fraud Scam.

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