A few weeks ago I went to deposit some cash in a niece’s BoA account (she lives abroad). The nice people in the branch said no more cash deposits by non-account holders. Instead, I needed to use a new app called Zelle. After my “WTF” response we had a polite conversation, they relented and allowed me a one time exception, as it was a unique and quite urgent situation.
This troubles me. The app literature and documentation is all marketing doublespeak and does not address (that I can find) account safety and security in a comprehensive way. Right now, if someone accesses my bank account and transfers money out, without my authorization, the bank has liability, as long as I report it within 60 days, according to he EFTA.
It is not at all clear that the bank has this same liability if Zelle is used to carry out a transfer. It looks like the core of the system is built around phone numbers and email addresses, instead of bank routing and account numbers. If so, there is all kinds of potential for fraud, and in this case, the banks may not be liable.
I hope I’m reading this wrong, but in the meantime have no intention to install Zelle until I see the same level of security and liability that currently exists.
This troubles me. The app literature and documentation is all marketing doublespeak and does not address (that I can find) account safety and security in a comprehensive way. Right now, if someone accesses my bank account and transfers money out, without my authorization, the bank has liability, as long as I report it within 60 days, according to he EFTA.
It is not at all clear that the bank has this same liability if Zelle is used to carry out a transfer. It looks like the core of the system is built around phone numbers and email addresses, instead of bank routing and account numbers. If so, there is all kinds of potential for fraud, and in this case, the banks may not be liable.
I hope I’m reading this wrong, but in the meantime have no intention to install Zelle until I see the same level of security and liability that currently exists.