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Cyber Risks · Krebs on Security

The ‘Zelle Fraud’ Scam: How it Works, How to Fight Back

Summary: Scammers send spoofed bank text messages about suspicious Zelle transfers, then call anyone who responds while posing as the fraud department and using the victim's username plus a read-back one-time passcode to reset the online banking password. Ken Otsuka of CUNA Mutual Group said many victims had never used Zelle, which credit unions often offer by default, and that scammers also defeat Zelle's out-of-band authentication by telling members a transfer text is for reversing a fraudulent debit card charge.

Key Takeaway: The fraudster never needs the victim's password, and Otsuka said losses escalate quickly because so many members can be targeted on a single day over consecutive days. Bob Sullivan notes banks often tell customers they owe no reimbursement, even though Regulation E entitles victims of unauthorized transactions to a refund.

Read the original at Krebs on Security ↗

Topics
Identity & Access Management
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