Complaints

• Initial Complaint

  08/21/2024

  Complaint Type:

  Product Issues

  Status:

  Answered

  More info

  On 8/1/2024, there was a total of $9,956 taken from my account within a 45-minute timespan. I reported this promptly as my device was accessed by an unauthorized party, allowing this transaction to start initially. I attempted to stop this charge with my bank prior to the amount clearing my account due to fraud from a third party. I was told that I had to allow the transaction to clear and dispute the charge; that there was "no way to stop a pending transaction". I have been banking with this company for 21 years, and any time a large sum of money has been taken from my account, or there was an attempt, I have received a phone call and been able to confirm/deny that I was making a transaction. I have reported this matter via the police and OCC. This exhibits a breach in security and a failure to protect my financial assets on the part of the bank. The banking entity cited that the charges on my account were "authorized" when they certainly were not. Any reasonable person can deduce that there is something extremely wrong or suspicious when there are deductions of $4,989.00, $4,567.00, and $400.00 have been made within a 45-minute time frame. For reference, this same institution blocked a charge for $90 from an online vendor with their fraud prevention team. The fraud prevention team should have been able to use reasonable judgement to block these large transactions in such quick succession. I was prompt on notifying the bank PRIOR to the transaction clearing and reporting this to law enforcement as fraud. This event occurred on the day I was paid, and as a disabled veteran this was more than double my paycheck for the month.

  Business response

  08/30/2024

  We are very sorry that you have been the victim of fraud.  Unfortunately, this scenario happens far too often, resulting in losses to bank customers at the hands of criminals.
  
  Banks are required to follow regulations that govern account activity consisting of electronic transfers.  Regulation E under the Electronic Fund Transfer Act (EFTA) provides requirements under which the bank must comply.  This regulation provides certain protections for consumers whose accounts have been subjected to “unauthorized” transactions.  The regulation defines an unauthorized electronic transaction as an electronic fund transfer from a consumer's account that has been initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit.
  
  In this case, according to your earlier statements made to the bank, the three transfers were initiated and made by you via Cash App on your phone.  It is understood that a third party was involved who instructed and coerced you to follow his instructions, however, the third party did not actually initiate the transactions.  Since the transactions were not made by a third-party, but instead were made by you, they do not fall under the definition of an unauthorized transaction.
  
  We have also provided a similar response to the appropriate regulatory agency to address your claim.

   

  Customer response

  09/03/2024

   
  Complaint: ********
  
  I am rejecting this response because:
  
  I do not understand how the fraud department did not detect this when they detected a $90 transaction made by me online a week prior as suspicious. Reasonable judgement could have been made that I am not withdrawing $10,606 in the timespan of 40 minutes. I also asked before the transactions cleared that they be canceled and that it was fraud and was denied. This could have been prevented from even happening had the representative listened to me when I called and notified them before the payment cleared. I’ve checked into credit unions and this never would have been allowed had I been banking with a credit union. I do not feel that I was taken seriously or that my requests to protect my assets were honored.
  
  Sincerely,
   **** ******

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