Chase has announced that, starting March 23, it will begin blocking Zelle payments made to contacts on social media platforms in an effort to combat fraud. The change comes as part of an update to the bank’s Zelle user agreement, aiming to reduce fraudulent transactions on platforms like Facebook Marketplace.
According to Chase, nearly 50% of scams reported to the bank originate from social media interactions, prompting the move to limit Zelle transactions to trusted friends and family rather than strangers selling goods online. The updated agreement specifies that Zelle should not be used for transactions involving retailers, merchants, or social media marketplaces.
If Chase identifies a Zelle recipient as someone met through social media, the bank may block or decline the payment or request additional details regarding the transaction’s purpose, the method of contact, or other relevant factors to assess fraud risk.
Zelle remains a widely used peer-to-peer (P2P) payment network, with over 150 million enrolled users and $1 trillion in transactions processed last year. However, concerns over fraud and consumer protection have led to increased regulatory scrutiny. In late 2024, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against JPMorgan Chase, Bank of America, and Wells Fargo, accusing them of failing to properly safeguard users from fraud on the platform.