A Florida man has admitted to his role in a scheme that defrauded individuals who use the electronic payments system Zelle, netting over $250,000.
KUTTINO JAMAL SCOTT, 24, of Miami, Florida, pleaded guilty to conspiracy to commit bank fraud in New Haven federal court.
According to court documents and statements made in court, law enforcement has been investigating crimes against users of digital payment applications, including Zelle.
The scheme typically involves a fraudulent text message, purporting to be from the victim’s bank, asking the victim to confirm whether a Zelle transaction was authorized. When the victim denies the transaction, the victim receives a response that a bank representative will be in contact.
The victim then receives a phone call from an individual impersonating a bank representative, who informs the victim that an unauthorized transaction has occurred and that they need to work together to reverse the transaction.
Without the victim’s knowledge, the fraudsters will link the victim’s actual phone number or email address via Zelle to a bank account that does not belong to the victim. The victim is then instructed to ‘reverse’ the fictional fraudulent transaction by making a Zelle payment to what they believe is their own account, but is, in fact, an account controlled by the fraudsters.
From approximately February 2021 through August 2023, Scott and others, including Kader Gahmaal Biwaki Edmond, defrauded numerous victims, including victims in Connecticut, of a total of more than $250,000 through this Zelle scheme and other fraud schemes.
Scott was arrested on August 31, 2023, and pleaded guilty to conspiracy to commit bank fraud, an offense that carries a maximum term of imprisonment of 30 years.
He is scheduled to be sentenced on April 13, 2024, and is currently out on a $100,000 bond pending sentencing.
Edmond, who pleaded guilty to the same charge, was sentenced to three years of imprisonment on August 19, 2024.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Edward Chang.
Victims can report Zelle fraud to their bank or credit union, or to the Internet Crime Complaint Center (IC3), which is run by the FBI and serves as the country’s hub for reporting cybercrime, at www.ic3.gov.
Related Federal Cases
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- Alex Fajin-Diaz, Jackpotting Scheme, Connecticut 2018 · Connecticut
- Maurice Sessum, $31M Debt Collection Scheme, NY 2024 · Connecticut
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- Theresa A. Freeman, Unemployment Benefits Scheme, New York 2024 · Connecticut
Key Facts
- State: Connecticut
- Category: Cybercrime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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