Sunova refunds members whose money was stolen in online scam

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This article was published 24/09/2020 (1332 days ago), so information in it may no longer be current.

After initially refunding members who’d be victims of theft minus a $1,000 deductible, Sunova Credit Union announced last week the credit union would give those members all their money back.

As first reported by CBC, a number of Sunova Credit Union members in the course of attempting online banking clicked on a Google ad and typed in their banking log-in information. The ad was a scam made to look similar to Sunova’s real website.

A statement from the credit union said a fake Google ad had been taken out in the credit union’s name.

“It was not a breach of Sunova’s security, but rather a completely separate ‘site’ set up by a scammer designed to persuade individuals to reveal personal information,” a Sunova spokesperson said in a statement.

With that login information, money was later transferred from members’ accounts.

Sunova representatives knew the ad was up in late July, according to CBC, but the credit union didn’t begin external communications until Aug. 14. Some members thought the credit union could have informed members sooner.

The initial CBC report was published Sept 8, saying the credit union would be able to refund the money of theft victims minus a $1,000 deductible.

Ten days later, the credit union announced they would refund members affected by the scam in full. According to a statement, the credit union connected with each member since refunding their money.

Sunova implemented more online security controls after the scam, such as two-step verification for online banking. Sunova promised the organization is working with its membership to ensure people know how to protect themselves.

“These types of fraudulent attacks are an unfortunate reality of the world we live in today,” a spokesperson wrote.

The spokesperson said it isn’t mandatory to sign up for online banking, but there are small financial incentives to bank online with the credit union rather than in-person. In branch transactions cost at least a dollar for each cash withdrawal, cheque withdrawal, transfer, or bill payment. Transfers, bill payments, statements and member-to-member transfers are free online.

A Sunova spokesperson said a majority of members use online banking services, and staff teach members how to access online banking and review security features. Sunova’s website also has various resources about online usage.

The Carillon was unable to reach Credit union members affected by the scam.

Sunova representatives declined a phone interview, instead responding to all questions by email.