JPMorgan Chase has announced significant changes to its Zelle payment service policy, specifically targeting transactions linked to social media contacts. Starting March 23, the bank will begin blocking, delaying, or declining Zelle payments identified as originating from social media interactions.

This decision comes in response to alarming fraud statistics, with nearly 50% of all reported Zelle and wire transfer scams between June and December 2024 originating from social media platforms. The bank emphasizes that Zelle should only be used for transfers between trusted recipients, such as friends and family.

The policy update explicitly prohibits using Zelle for purchases from retailers or merchants, particularly through social media marketplaces and messaging apps. Chase will now require additional information from users regarding payment purposes and recipient relationships to assess fraud risks.

This move follows a December lawsuit by the Consumer Financial Protection Bureau (CFPB) against Zelle’s operator, Early Warning Services, and three major banks, including JPMorgan Chase. The lawsuit alleges that rushed implementation of the service led to inadequate consumer protections, resulting in customers losing over $870 million to fraudulent activities.

Unlike other payment platforms, Zelle lacks purchase protection features despite its integration with major U.S. bank mobile apps and its capability for instant transfers. The new restrictions represent a significant step toward protecting consumers from the growing threat of social media-based payment scams.