Consumer complaint received 2023-01-17 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: Early Warning Services, LLC
State: TX

Complaint narrative:
On XX/XX/23, I was selling a couch on XXXX XXXX for {$300.00}. A user named XXXX XXXX was interested in the couch, ready to pay for it, scheduled a pickup time, and wanted to use Zelle as the payment method. He asked for the email address associated with the Zelle account so he could issue the {$300.00} payment. I got an email from ZELLEXXXX XXXX XXXX stating : " We have a problem crediting your funds ( {$300.00} USD ) because your account is not a Business User which makes your account have limits. This amount seems to be above your limits so you have to take this urgent step to expand your limit. 
Expand your account into a business account, contact your payee ( XXXX XXXX ) to send in an additional payment of {$200.00} USD into your Zelle account to expand your limit. Soon as this is done, we will credit your account with the whole sum of ( {$500.00} USD ) '' The next email stated : " Amount : {$300.00} USD Account XXXX  : {$200.00} USD Total Amount : {$500.00} USD REQUIREMENT TO GET YOUR FUNDS FOR BOTH PARTIES PROTECTION. 

We congratulate you for successfully upgrading your account to a Business User which gives you XXXX XXXX to receive any amount of money from now on. 
For your account to be credited fully with the sum of ( {$500.00} USD ). You are required to contact the sender to refund back the sum of {$200.00} USD so as to secure the Additional Payment sent to expand your account. 
transfers INSTRUCTIONS BELOW **Contact ( XXXX XXXX XXXX for the Zelle agent information to refund back the ( {$200.00} XXXX  ) **Kindly send a screenshot of the Refund payment been sent to confirm and release the total sum of ( {$500.00} USD ) automatically into your account immediately. '' I reached out to XXXX XXXX to let him know and he said this is the usual process for updating a Zelle account to a business account and he gave me his username. I sent over the {$200.00} and then got another email stating : " Hello XXXX XXXX This is to inform that your funds has been approved, In order to get the full total {$500.00} USD transferred into your zelle account, you are hereby to pay the certificate form fee of {$300.00} USD so that we can start the processing of the funds, the certificate form fee represents the approval of your funds and also stands as insurance to your Business account, the money will be added to your pending fund and you will be credited fully with the sum of {$800.00} USD. 

Below Is The Instructions : Send the certificate fee by sending to the zelle below you are to send it to the zelle info Amount : {$300.00} Name : XXXX XXXX Email : XXXX Note : Once you send the money get back to us with the screenshot and you will be credited in one seconds thanks for using the zelle '' I said this is really weird but XXXX ensured me it's normal so I sent the {$300.00} payment to XXXX who claimed to work at Zelle. 

After the Zelle payment went through, I received another email from ZELLEXXXX XXXX asking for a " GOVERNMENT APPROVED FEE '' of {$500.00}. This is when I replied to the email to cancel the business account application, requested a refund of {$300.00}, and asked XXXX to use another form of payment. I also asked if he would refund me the {$200.00} I sent him and I'll send him the {$300.00} he sent me. He said that is impossible without following the steps of the emails and then I realized I had been scammed. 

I deactivated my Zelle account through my XXXX XXXX XXXX and I will never use it again. 

On XX/XX/23 I called the XXXX Claims department and filed a claim, and they said they will not reimburse me for the scam and they would file a claim with Zelle, but it is unlikely Zelle will help me. 

I can provide screenshots and user info.

Company response to consumer: Closed with explanation