81-year-old man loses thousands of dollars in credit union scam using payments app

FOX 2 – Constance Jackson says it all started with an unsolicited phone call.

“It happened on my phone as Michigan First Credit Union,” said the 81-year-old.

A man claiming to be in his credit union said someone tried to use his account in Texas without success and he would lock the account for 24 hours.

The next day: “I called the credit union to see how to unblock my account, they said they never called me,” Jackson said. “And they said the money was gone. They told me I had been scammed.”

The con stole $ 4,000 from the retired grandmother, widow and school administrator from her account through the Zelle app in one day.

Jackson thought the credit union would cure her. She waited a few weeks and then called him back.

“They told me I had to get my money back through Zelle, and they had tried to get the money from Zelle, and they could only get $ 35 back out of the $ 4,000 that had been taken,” he said. she declared.

Michigan First Credit Union is investigating what happened.

Zelle is a digital payment service often used by banks that transfers money from one account to another.

A spokesperson says they are not responsible for the money lost, the credit union is.

Complaints against mobile payment apps, including Zelle, have exploded this year as more consumers fall victim to scams.

“We’ve all been involved in countless data breaches. You hear about it in the newspapers all the time,” said David Derigiotis.

Derigiotis, a cybersecurity expert, claims that some of our personal information ends up on the dark web. Scammers sometimes use them to contact us and try to convince us to give out more sensitive information like login credentials, passwords, or security codes.

“Never give out information if you are contacted directly,” Derigiotis said. “I don’t care if they tell you they’re from the bank. Always hang up and contact them directly.”

And that’s not all

“Set up two-factor authentication with one of your online accounts, especially your bank,” he added. “I’m thinking about some things about financial institutions, setting up an online notice and alert. Ask them to report (the transaction), text you, email you, every time they go. a certain amount of money is transferred or accessed over any dollar amount. “

Consumer protection agency Early Warning Services issued a statement through a spokesperson regarding the Zelle app.

“Zelle does not own or manage any funds, so it is the financial institution’s decision on how to resolve the consumer issue. Media and customer inquiries for consumers using Zelle in financial institution applications should be sent. to these companies. “

A statement was released by Michigan First Credit Union President and CEO Michael Poulos.

Michigan First Credit Union has been dedicated to providing exceptional service and ensuring the financial security of our members for 95 years. We work diligently to educate our members on fraud schemes and how to protect themselves. education, we have extensive security measures in place to prevent members from falling victim to attempted fraud.

“We are deeply saddened when someone suffers a financial loss as a result of fraud, and we do our best to help our members avoid these types of situations. The advice and security measures we provide don’t go far; it is ultimately the responsibility of each member to continue these efforts to protect their money.It is important to never share personal information, including login credentials, passwords or security codes, with anyone.

“Financial institutions will never ask for this information from their members or customers.”