[conanbatt]

I understand Zelle / irreversible payment situations. But the bank knows who this is, its not an untraceable scam.

Why does it survive?

[triceratops]

Because it could just as easily be a scam in the other direction. Get paid for a legitimate service, have the payment reversed. The bank doesn't want to get involved - easier to treat Zelle payments as if you handed over cash.