CUNA Mutual Group- a mutual insurance company that provides financial services to credit unions, their members, and other customers worldwide- has informed the credit union of a new twist to a Zelle® fraud scam. Fraudsters have been known to target members of credit unions, specifically those offering Zelle. They are beginning to defeat 2-step authentication, which is the use of a one-time passcode.
How the scam works:
- Fraudsters send a text alert to a member- appearing to come from the credit union- informing members of suspicious debit card transactions.
- Once the member responds to the text, the fraudster will then proceed to call. They spoof the credit union's phone number and claim to be from the fraud department.
- The fraudster will then ask for the member's online banking username and inform them that they will receive a passcode either by text or email. The member must then provide the passcode to the fraudster, posing as a credit union employee, over the phone. In reality, this fraudster may have initiated the "forgot password" feature and will attempt to log in to the member's online banking platform.
- Upon logging in, they can change the members online banking password and contact information. They then use Zelle to send funds to others.
- Always be wary of texts or phone calls appearing to come from the credit union. If your Partners ever feel uneasy about a phone call or question the number, the can always call the main number and get in contact with a representative directly.
- Inform Partners to never provide personal information in response to a text message or phone call they do not recognize.
- Advise Partners that the credit union will never ask for personal information such as passwords or passcodes. All questions when verifying transactions will always be "yes" or "no" questions.
- Express to your Partners that if something does not feel right, then to disconnect the phone call immediately and call the credit union.
Partnership between the credit union and our members can help combat fraud with these helpful tips.
If you or your Partners have any questions, please call the credit union at 210.938.7850 Monday-Friday 9:00 AM- 5:00 PM.
*Zelle and the Zelle related marks are wholly owned by Early Warning Services, LLC and used herein under license.