Traditional Bank JPMorgan Chase Instituting Block on Zelle Transactions Initiated via Social Media Following Regrettable $206.8 Million Scam Loss
Article Rewrite
In a bid to protect its users from scams, banking heavyweight JPMorgan Chase has started blocking Zelle transactions that originate from social media platforms. CNBC reports that this move comes after hundreds of millions of dollars worth of scams were facilitated through the payments platform with over half of them initiated through social media platforms.
Melissa Feldsher, JPMorgan's head of payments and lending innovation, stated that the bank doesn't recommend using apps like Zelle for sending payments to strangers. She explained, "Many of the interactions happening over social media are between people who don't know each other, and as a result, you are having interactions [that are] leading to money exchange between people who don't know each other."
Feldsher suggests that users should use products with purchase protection, like debit cards and credit cards, instead of Zelle when transacting with someone they don't know. "We think in instances that you are transacting and sending money to someone you don't know, you should be using a product that has purchase protection, products that we offer at Chase, like debit cards and credit cards. We don't think you should be using products like Zelle - the same way you wouldn't use cash to send money to buy something from someone you've never met or goods you have never seen."
This latest development follows a Senate report from last July that revealed $207 million worth of Zelle payments were disputed as scams from customers at JPMorgan Chase, Bank of America, and Wells Fargo, with the majority of them going unreimbursed.
Stay updated with the latest crypto news by following us on X, Facebook, and Telegram. Don't miss a beat - subscribe to get email alerts delivered directly to your inbox, check price action, and surf The Daily Hodl Mix.
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Industry News
- ProMeet Introduces Promeeters Program to Boost Influencer Influence and Long-Term Earnings (May 6, 2025)
- DogeOS Secures $6.9 Million in Funding Round Led by Polychain Capital to Launch Dogecoin App Layer (May 6, 2025)
- Casper 2.0 Goes Live on Mainnet, Setting Casper Network for the Real-World Asset Era (May 6, 2025)
- MultiBank Group Set to Tokenize $3 Billion in Real Estate Assets with MAG as It Prepares to Launch MBG (May 6, 2025)
- Pepeto to Launch on Exchange After Presale Completion and Platform Milestones (May 5, 2025)
- BC.GAME Commences Phase Two of Social Mining Campaign, Broadening Ecosystem Engagement Through BC Token (May 5, 2025)
- KuCoin CEO BC Wong Joins Industry Leaders at TOKEN2049 - Paving the Way for a Safer, Smarter Crypto Future (May 5, 2025)
Highlights
- New Scam Prevention Measures - JPMorgan Chase takes action to reduce scam risks through Zelle by blocking transactions originating from social media platforms and issuing warnings to users attempting to send money to strangers they've met online.
Covering the future of finance, featuring macro, bitcoin, ethereum, crypto, and web 3.
Categories
- Bitcoin
- Ethereum
- Altcoins
- Financeflux
- Trading
- NFTs
- Blockchain
- Regulators
- Scams & Fraud
- HodlX
- Press Releases
About Us | Editorial Policy | Privacy Policy | Terms and Conditions | Contact | Advertise
- JOIN US ON TELEGRAM
- JOIN US ON X
- JOIN US ON FACEBOOK
COPYRIGHT © 2025 The Daily Hodl
- FEATURES
- News
- Bitcoin
- Ethereum
- Altcoins
- Financeflux
- Trading
- NFTs
- Blockchain
- Regulators
- Scams & Fraud
- HODLX
- Latest Stories
- FAQ
- Submit Guest Post
- INDUSTRY ANNOUNCEMENTS
- Latest
- Press Releases
- Chainwire
- Sponsored Posts
- Submit Your Content
- CRYPTO MARKETS
- SUBMIT
- Guest Post
- Press Release
- Sponsored Post
- Advertise
- In light of the growing risks associated with cryptocurrency scams in the banking-and-insurance industry, the “ProMeet Promeeters Program” aims to boost influencer influence and long-term earnings.
- To combat the increasing number of altcoins scams facilitated through social media platforms, DogeOS recently secured funding to launch a Dogecoin app layer, ensuring safer transactions.
- The Ethereum industry witnessed significant progress with the Casper 2.0 mainnet launch, setting the stage for the introduction of real-world asset transactions within the Casper Network.
- MultiBank Group is set to tokenize $3 billion in real estate assets, utilizing the MAG platform and preparing to launch MBG, signaling a shift towards a safer and more secure financial future.
- The Pepeto platform will soon be available for trading on major exchanges following the successful completion of its presale and platform milestones, offering a safer avenue for transactions within the domain of finance and crypto.
