A writer recounts his experience with a scam involving the construction of a pool, where he unknowingly sent money to a hacker. The episode also discusses the difficulties in reporting fraud cases and introduces Zell, a popular peer-to-peer payment app. It highlights the lack of assistance from Zell and efforts to push for legislation to protect customers.
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Quick takeaways
Peer-to-peer payment apps lack consumer protections, leaving users vulnerable to scams and fraud.
Law enforcement and banks often provide limited assistance and fail to take responsibility for online scams.
Deep dives
The Quest for Luxury Living Takes an Unexpected Turn
Devin Friedman, a journalist, recounts his desire to have a luxurious house with a pool like his friends Bobby and Eric. He decides to hire a pool contractor named Gary Kruglets, who promises to build a pool similar to Bobby and Eric's at a lower cost. However, after sending several payments totaling around $31,000 via Zell, it is revealed that someone hacked into Gary's email and scammed the money. Devin's attempts to recover the funds are met with little assistance from Zell, the peer-to-peer payment app used for the transactions. Law enforcement is also unhelpful due to the relatively small amount involved. Despite the loss, Devin eventually manages to build a pool, but with a different contractor.
The Perils of Peer-to-Peer Payment Apps
Devin highlights the popularity of peer-to-peer payment apps, such as Zell, which are owned by large banks and offer quick and easy money transfers. However, he points out that these apps lack consumer protections, leaving users vulnerable to scams and fraud. While lawmakers like Elizabeth Warren advocate for legislation to protect customers, the sheer volume of fraud cases makes it difficult for law enforcement to prioritize smaller cases. The banks, which promote these apps as safe and secure, avoid taking responsibility for such incidents, further adding to the challenges faced by victims of scams like Devin.
The Frustrating Search for Justice and Recovery
Devin recounts his attempts to seek justice and recover his lost funds. He contacts law enforcement agencies, his bank, and even media organizations to raise awareness about his case. However, little progress is made. The FBI and local law enforcement show limited interest, and his bank only manages to recover a meager $235. Zell, the app used for the transactions, offers no assistance in recovering the lost money. Eventually, Devin and his wife build a pool with a different contractor, but the experience sheds light on the challenges faced by victims of online scams and the lack of support and accountability from financial institutions.
Writer Devin Friedman has wanted a pool since he was a kid. As an adult, he saved tens of thousands of dollars to install one, but nothing went as planned. He hopes you can learn something from his story.
This episode was produced by Hady Mawajdeh, edited by Amina Al-Sadi, fact-checked by Laura Bullard, engineered by David Herman, and hosted by Sean Rameswaram.