Zelle and the rise of mobile banking fraud

Zelle, a bank owned application for money transfers, experiences fraud at an alarming rates. Zelle is marketed as a secure application due to its inception of a bank-owned application, but its system is less secure than users would expect. There is no dual authentication system before sending the money, and the system relies on the fact that each phone number or email is unique, even though phone numbers can change. Zelle, despite its issues, is the fastest growing mobile banking application with over $75 billion in sales for last year.

Zelle is more successful than Venmo, which is backed by PayPal, which is something that I find to be extremely interesting. Venmo seems to be the application that every college-aged mobile user chooses; my friends and I routinely send money to each other through Venmo and the money stays there or can be transferred through a bank. The rise of media and technology have been so ubiquitous that none of my friends carry cash. Whenever we want to pay each other it is through Venmo. It is scary to think about the lack of security of applications like these, especially because my bank account is linked to this application. Every month I get emails to review my Venmo history, which I never take the time to do because I always assume that there is no fraud. Overall, the influence of Zelle and Venmo are only increasing, which is why it is imperative to be conscious of what is happening with our money. I need to actually take that into account every time I use Venmo instead of mindlessly sending $10 for dinner back and forth to my friends.