Crafty Crooks Exploit P2P Payment Platforms
Person to Person (P2P) payment platforms like Zelle, Venmo, Cash App, etc. have become popular because they are a fast and convenient way to send money to friends and family. For even more convenience some credit unions have made these platforms available through their online applications. However, the almost immediate payment turnaround time has also caught the eye of the crooks.
Recently, fraudsters have upped their game and snuck around security measures specifically 2-step verification (legitimate onetime passcodes sent via text or email). As is sometimes the case, the vulnerability is the human element.
The latest rash of scams start with the fraudster sending out fake text alerts that appear to be from a credit union warning of possible suspicious activity. If someone responds, they now have a live one on the hook- an unsuspecting credit union member. They spoof their calling number to appear to be from the credit union and contact the member alleging to want to help them with potential fraud. They ask for the member’s online banking username for authentication. With this key piece of info they keep the member on the phone while they initiate a password reset for the online banking. The fraudster tells the member they will shortly receive a onetime passcode and ask them to read it to them. Now the fraudster resets the online banking password and has full access to the account.
P2P vendors have added the additional security measure of requiring their users to reply to text messages before authorizing all transactions. However, fraudsters skirt around this by keeping the unsuspecting credit union member on the phone and asking them to authorize the transaction via text. Now the fraudster gets busy sending money out through the P2P platform.
Don’t be hooked by these crafty crooks by pausing, not being pressured by unexpected callers, and thinking about the information you’re disclosing. Below are some additional ways you can protect your money.
How to Protect Yourself
Stay informed and aware of current scams
Be wary of texts or incoming calls alleging to come from the credit union (don’t be pressured and take a moment before answering questions)
Remember the credit union will never call you and ask for personal information
If in doubt call the credit union directly using the phone number you are already familiar with
Never give out account numbers, usernames, passwords, or onetime passcodes
