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JPMorgan Chase has announced plans to block certain Zelle peer-to-peer (P2P) payments originating from social media contacts, citing rising fraud risks. The update to its Zelle user agreement, set to take effect on March 23, aims to curb fraudulent transactions linked to social media platforms like Facebook Marketplace.
According to Chase, nearly 50% of reported scams stem from social media interactions, leading the bank to reinforce that Zelle is designed for transactions between friends, family, and trusted contacts—not for purchasing goods from unknown sellers on social platforms.
The revised user agreement explicitly states:
“The Service is not intended, and should not be used, for the purchase of goods from retailers, merchants, or the like, including on or through social media or social media marketplaces or messaging apps.”
Under the new policy, Zelle payments flagged as originating from social media contact may be blocked or declined. Chase may also request additional details from users, such as the purpose of the payment, how they connected with the recipient, or other relevant factors to assess potential fraud risks.
Zelle remains one of the most widely used digital payment platforms, with over 150 million enrolled users and more than $1 trillion in transactions processed last year. However, concerns over fraud have intensified, drawing scrutiny from regulators. The Consumer Financial Protection Bureau (CFPB) recently filed a lawsuit against JPMorgan Chase, Bank of America, and Wells Fargo, accusing them of failing to adequately protect users from scams on the platform.
By enforcing these new restrictions, Chase aims to enhance fraud prevention efforts while ensuring safer digital transactions for its customers.
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