Beware of Mobile Payment Scams

August 13, 2021

Fraudsters are always trying to find ways to part consumers from their money. Recently, their preference has been to target Zelle due to the speed in which the payments are made (minutes rather than hours or days). However, other person-to-person products like CashApp or Venmo are also being targeted. Here is how the scam works:

  • It starts with fraudsters sending account alerts to members via text message – appearing to come from the credit union - warning them of suspicious debit card transactions on their accounts.
  • The fraudsters call the members who respond to the text spoofing the credit union’s phone number claiming to be from the credit union’s fraud department and are calling to verify suspicious transactions on the member’s account.
  • To verify the identity of the member, the fraudster asks for their username and tells them they will receive a passcode via text message and the member must provide the passcode over the phone.
  • The fraudsters actually attempt a transaction that triggers a 2-factor authentication passcode, such as using the “forgot password” feature, and the passcode is sent to the member via text or email who, in turn, provides it to the fraudster.
  • The fraudster immediately uses the passcode to login to the member’s account, changes the online banking password, and uses Zelle/P2P to transfer funds to others.

In some cases, the fraudsters have hacked member email accounts to intercept passcodes sent via email. These tactics allowed fraudsters to intercept the passcodes needed to login to member accounts.

Here’s what you can do to protect yourself from fraud:

  1. Enroll in ID protection services. [describe our ID theft services]
  2. Change your passwords often. [add text about this]
  3. Enroll in eAlerts and Card Fraud Alerts [describe the services]

Remember, NASA Federal Credit Union will never ask for passwords or passcodes. If you are not familiar with the caller, hang up immediately and call the credit union’s number directly for assistance: 1-888-627-2328.