Fraud Alert for LLCU Members Using Zelle®

11/23/2021 Cayla Hittmeier

FRAUD ALERT - November 23, 2021

Land of Lincoln Credit Union has received several reports of other credit unions experiencing fraud activity with Zelle® through online banking. There are several tips below and red flags to watch for, but as always, please remember, LLCU WILL NEVER CALL YOU AND ASK FOR YOUR ACCOUNT LOGIN INFORMATION. Do not ever give this information to someone over the phone. If you receive a call, hang up and call our Member Solutions Center for further verification and investigation. 

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.
  • For those members who respond to the text, the fraudsters call the members spoofing the credit union’s phone number and claim they are in the credit union’s fraud department and are calling to verify suspicious transactions on the member’s account.
  • To verify the identity of the members, the fraudster asks for their username and tells them they will receive a passcode via text message and the members must provide the passcode over the phone.
  • The fraudsters actually attempt a transaction that triggers a 2-step verification passcode, such as using the “forgot password” feature, and the passcode is sent to the members via text or email who, in turn, provide it to the fraudsters.
  • The fraudsters immediately use the passcode to login to member accounts, change the online banking password and uses Zelle® to transfer funds to others.

To combat this fraudulent activity, Zelle® has introduced out-of-band authentication with transaction details. This is similar to 2-step authentication except that members receive text message containing the details – payee and dollar amount – of the Zelle® transfer. Members must authorize the Zelle® transfer by responding YES to the text.

Once again, your best defense against this fraud is to NEVER share your account information with anyone via phone, text or email. If you receive correspondence, please call LLCU immediately at 844.222.7788.