(WXYZ) — More and more people are using financial technology companies, also known as "FinTech," to handle their money.
From mobile banking apps and payment apps to investment and trading apps, the list keeps expanding.
However, a Wayne County man recently lost a lot of cash due to an unauthorized transaction on one of these peer-to-peer payment apps, and he's raising his voice to help you protect your money.
Michael Linblade of Redford is still reeling from an unauthorized transaction on his Chime app, a peer-to-peer payment app tied to his checking account. He lost $2,099.25 in just one transaction.
Linblade, who has been diagnosed with multiple medical conditions and lives on a fixed income, says the financial hit has left him struggling.
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"Did they put up any red flags that something was wrong?" I asked.
"Uh - just the log-in notifications," he said.
Chime's "New login detected" notification read, in part, "If this wasn't you, please reset your password," so he did.
But Linblade said the unauthorized transaction of more than $2,000 went through the next day.
He said he reported it to Chime on Dec. 16.
But the Chime Disputes Team found no error occurred, so no funds would be credited to his account — which was then closed on Jan. 21, 2025.
I reached out to Chime, and a spokesperson responded with this statement: "As the most loved banking app, Chime is committed to our members and ensuring they control their money. We take matters like this very seriously and our team has thoroughly reviewed this case. We stand by our decision."
Chime offers customers two-factor and fingerprint authentication, instant transaction alerts — if enabled, and a freeze on your card if lost or stolen.
"What we always emphasize is pause before you pay, take a beat," Penny Lee, the president and CEO of the Financial Technology Association, told me.
The organization has launched the "Smarter Than Scams" campaign, and Lee said changing your passwords is key.
"How often should people be changing their passwords on their bank accounts?" I asked.
"I know this would not be popular, but you know, it is suggested once a month," Lee said. “I would say periodically take a look. Ensure every quarter [you] make sure none of your passwords seem stale or seem repetitive."
She recommends using password managers and multi-factor authentication and cautions everyone to be careful when using public Wi-Fi networks because they are less secure than private networks.
"Do you have multi-factor authentication?" I asked Linblade.
"That probably would have been a good idea, but no," he replied.
Linblade has filed complaints about the incident with the FTC and other agencies and hopes his story will help others.
Remember, if you discover an unauthorized transaction, it's important that you contact your bank immediately.
If you're shopping for a banking app, you can look up any possible complaints about the app provider by visiting the Better Business Bureau's website or the Consumer Financial Protection Bureau's complaint database.
