MECHANICSBURG, Penn.–Several people have been convicted in a scheme that may have more “hundreds” of victims, many of whom are members of Members 1st FCU, according to a new report.
In all, more than $3 million may have been stolen in the scheme that took place in 2023.
According to WGAL, a two-year investigation by the Pennsylvania State Police and the Office of the Attorney General has led to the identification of an organization that investigators called “corrupt” and which used a series of tactics to access victims’ accounts, transfer funds into secondary accounts, and then make off with the money for themselves.
“Victims reported receiving suspicious phone calls and texts from individuals claiming to be from the credit union’s fraud department,” WGAL reported. “They were asked to provide online banking logins and passwords with the suspects then locking the actual owner out of their account and taking control of their funds.”
The report quoted investigators as saying the scammers would transfer money into secondary credit union accounts, which were referred to by authorities as “funnels” and which were set up to conceal the suspects’ true identities.
How Scheme Worked
“They’d withdraw the money from ATMs, cash advance transactions at casinos and electronic platforms like Cash App and Apple Pay,” the WGAL report stated, adding that evidence from interviews and social media helped identify more than 800 victims and gave more insight into the operation’s structure, with all these suspects now facing charges.
“It’s not clear at this point how many of the victims are account holders with Members 1st,” according to the report, which said the estimated total that was stolen from these victims: $3 million. The number of victims and monetary total is only expected to go up as more people make reports.
In a statement to WGAL News 8, the chief marketing officer for Members 1st FCU said, “This was a very elaborate scheme, and our team of fraud analysts and investigators worked tirelessly to assist the PA Office of Attorney General throughout the investigation, leading to these charges and the resulting sentencing. Members 1st Federal Credit Union is pleased to learn that the AG’s Office has announced the sentencing of additional individuals charged in this 2023 bank fraud and impersonation scheme.”