This is what is happening with Zelle these days as the amount of scams are just increasing dramatically. Practically every time I want to do a Zelle, I have to acknowledge the fraud warning notice.
By the way, if the initial limit for a new recipient for you is $500, that is not the default, that is actually a lower limit indicating a trust issue. There are so many possibilities such as how often you have used Zelle (outside of this new recipient), etc. The fact you are sending money to yourself because the number was already on your Chase account could have also raised flags. Could you have used an email address not listed with Chase at all instead?
Chase does not get destination bank information (at least, it isn't supposed to), but they do a real-time request to verify the Zelle recipient existence and most banks will tell you the name field from Early Warning to ensure you are sending it to the person you are intending.
Zelle is a really powerful system as it has circumvented so many challenges in transferring funds in the US electronically, but it also happens to allow quick depletion of funds upon receipt with little chance for recovery (where stories of a Zelle refund are primarily the bank eating the loss). You can blame Chase, but not sure they see this issue as a customer service problem. Further Chase is actually making a big push for companies to accept Zelle payment instead of a check in particular (
https://www.chase.com/business/banki...-banking/zelle).