SCAM Alert: Venmo Upgrade Hoax With Zelle Bank Impersonation

A local neighbor was targeted by a sophisticated payment scam that began on Venmo and quickly shifted to bank impersonation using Zelle. They recognized the red flags and stopped it midstream. This bulletin explains the tactics so you can avoid the same trap.

What happened

A supposed buyer insisted a Venmo business upgrade was required to release a payment. When that story started to wobble, the scammer handed off to a fake support representative who pushed the victim to act on a live video call. The script then pivoted to the victim’s bank with claims of urgent account trouble and instructions to move money through Zelle. The call tried to keep continuous control through FaceTime or screen sharing. The attempt was cut short before any funds left the account.

How this scam works

1. Hook. A buyer claims you must upgrade Venmo or accept extra funds before you can be paid.

2. Hand off. You are told to contact support and a fake agent appears on a live video call, adds pressure, and asks you to keep the call open.

3. Pivot. The story switches to your bank. They claim immediate action through Zelle will fix a freeze or security problem.

4. Control. They watch your screen or visually steer your steps and push you to complete transfers.

5. Threat loop. They warn that Venmo or your bank will freeze funds if you do not comply.

Why the Venmo story is false

1. Real Venmo does not require an upgrade that involves sending or accepting extra money to unlock a payment.

2. Business fees on Venmo are handled by the platform. Buyers are not asked to send side payments to cover fees.

3. Requests to refund or repay outside Venmo are classic set ups that leave you holding the loss.

Why the Zelle pivot is dangerous

1. Zelle transfers usually move within minutes and are very hard to reverse once the recipient is enrolled.

2. Real banks do not make you move your money to protect it. They do not require you to create new payees or send test transfers to fix fraud.

Likely actions the scammers attempted

1. Gaining visibility during your online banking session by keeping you on a call or convincing you to share your screen.

2. Pressuring you to move savings into checking as a pre step before pushing a rapid external transfer.

Immediate steps if you were targeted

1. From a clean device change passwords for your bank, Venmo, and email. Turn on app based two factor authentication.

2. Review recent activity on Venmo and your bank. Sign out of all sessions and remove unknown devices or connections.

3. Delete any remote or screen sharing apps you installed. Remove screen recording permissions.

4. Call your bank using the number on your card. State that you faced an impersonation attempt that involved Zelle and a video call. Ask for heightened monitoring and for restrictions on new payees when possible.

5. Contact Venmo only through in app help or the official website. Ask for a security review and note that you were targeted by an impersonator.

6. Preserve evidence. Keep screenshots, phone numbers, timestamps, and any messages.

Handling payment and refund pressure

1. Do not send money back outside the original platform.

2. If a Venmo transaction is frozen or looks suspicious, let Venmo decide the outcome.

3. Ignore any instructions from callers who are not reached through official in app support.

Red flags to remember

1. Anyone who says you must upgrade a payment app by sending or receiving extra money.

2. Anyone who gives you a phone number for support and tells you to stay on the line.

3. Any request to share your screen or show your banking session during a video call.

4. Threats that your accounts will be frozen if you do not act immediately.

Community note

Please share this alert with neighbors and small businesses. Awareness shuts down these scams. If you spot similar tactics, report them through official channels and help keep our community safe.

Sourcing

1. Venmo Help Center. Reporting Fake or Suspicious Messages or Emails. Venmo. Venmo Help Center

2. Our Fees. Venmo. Venmo

3. Business Profiles FAQ. Venmo Help Center. Venmo Help Center

4. Buying and Selling on Venmo FAQ. Venmo Help Center. Venmo Help Center

5. Can I reverse a Zelle payment. Zelle. Zelle

6. Never move your money to protect it. That is a scam. Federal Trade Commission. Consumer Advice

7. How to Avoid Imposter Scams. Federal Trade Commission. Consumer Advice

8. Tech Support Scams. FBI. Federal Bureau of Investigation

9. The Phantom Hacker. FBI Little Rock Public Warning. Federal Bureau of Investigation

10. Scammers Using Computer Technical Support Themes to Target Consumers. IC3 Public Service Announcement. Internet Crime Complaint Center

Prepared for community awareness by E-Safe, www.e-safe.us, Where Community Comes First.