PayPal Phishing Scam Snags CUMember

October 10, 2005, 1:00 a.m. EDT 1 Min Read

SAN MARCOS, Texas - (10/10/05) -- A member of Randolph-Brooks FCU wasaghast one day last week as she watched an online phishing schemedrain her credit union account of $1,800. The member, identified asErica Carpenter, reported checking her account balance online tofind several unauthorized charges, but was unable to make phonecontact with the credit union until the next day. Every time sherefreshed the page, she saw another charge against her account.Later she found out that her account and several others at thecredit union was made available through the Internet payments sitePayPal. She said she received an email from a phony site purportingto be PayPal and listing an email address it said had been added toher account, but she clicked on the button indicating she did notauthorize it. Carpenter explained she had used PayPal three yearsago to buy something off eBay, but hadn't used the service sincethen. Carpenter said she has been told she will only be responsiblefor the first $50 of the theft.

For reprint and licensing requests for this article, click here.

MORE FROM AMERICAN BANKER

Monetary policy

The Fed can ignore Trump — but markets are listening

The president and his allies have stepped up their verbal attacks on the Federal Reserve and its chairman in recent weeks, and while the tough talk has not changed policy, it has sent a clear message to the financial sector.

By Kyle Campbell

Just now
Cryptocurrency

Erebor's charter bid rides wave of fintech-friendly policy

Backed by tech billionaires, the crypto-focused digital startup bank's timely application reflects the current administration's openness to new tech-driven banking models — and raises concerns about regulatory impartiality, considering its backers' political ties.

By Ebrima Santos Sanneh

July 2
Regulating Crypto

Ripple joins other crypto firms seeking trust bank charters

The application follows on the heels of Circle and Wise, as crypto and payment companies seek crypto custody approval and direct access to the Federal Reserve payment system.

By Penny Crosman

July 2
Regulation and compliance

NCUA sets high bar for criminal referrals after Trump order

The credit union regulator, responding to a recent executive order, has established strict new standards for prosecuting financial crimes. Regulators are now supposed to make criminal referrals only in cases where putative defendants appear to have known they were breaking the law.

By Nathan Place

July 2
Fraud

Bank groups encourage Treasury switch to digital payments

Three bank trade associations recommended phasing out paper checks to reduce government payment fraud in a joint statement submitted to the U.S. Treasury.

By Melinda Huspen

July 2
M&A

Louisiana bank to enter Dallas with its second Texas deal

Baton Rouge-based Investar Holding Corp. has agreed to pay $84 million for Wichita Falls Bancshares, which operates five branches in the Dallas-Fort Worth Metroplex.

By John Reosti

July 2