Reports are being shared with credit unions that Zelle users have been experiencing fraudulent texts and calls. This article explains the scam and what you can do to protect yourself.
Zelle is a preferred target because of the speed in which the transfers are made, which is usually done within hours, and not days. Other person-to-person (P2P) vendors have been targeted as well with the same process.
Here’s how the scam works:
- Fraudsters send text alerts that appear to come from the financial institution warning of suspicious debit card transactions
- Fraudsters call when you respond to the text, often spoofing the financial institution’s phone number and claiming to be from the fraud department.
- To verify your identity, the fraudster asks for your online banking username and tells you that you will receive a passcode via text or email that you then need to provide to the fraudster. It’s actually the fraudster initiating a transaction that will send the verification to you.
- Providing the code to the fraudster will allow them to log into the account using a device not recognized by the system.
- Once they are logged in, the fraudster will change online banking passwords and use Zelle to transfer funds to others.
Even with the more sophisticated out-of-band authentication with transaction details that Zelle provides, the fraudsters have a work around. They keep you on the phone even after getting your passcode and have you wait for the additional message, telling you that you need to reply Yes to the message to reverse the fraudulent transaction.
What you need to do to protect yourself:
- Be wary of texts or calls regarding Zelle coming from any financial institution.
- Never provide personal information in response to a text message or a call placed to you from a financial institution.
- Make sure that any call you make to a financial institution is using a reliable and published phone number.
- If you suspect fraudulent texts or calls from ELGA Credit Union, please report them by calling (810) 715-3542 and talking to a call center agent.