Consumer complaint received 2023-09-10
Company: TRUIST FINANCIAL CORPORATION
State: VA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
Re : Failure of TRUIST to Handle Fraudulent Withdrawal Claim in a Timely and Effective Manner Dear Sir/Madam, I am writing to report a grievous lapse in how Truist handled a fraudulent withdrawal from my business checking account and to seek your intervention in this matter. 

On XX/XX/2023, at approximately XXXXXXXX XXXX, I received a call on my cell phone from a number that came up as Truist ; the caller provided me with the last 4 digits of my credit card number and stated they suspected my card had been compromised and wanted me to verify several transactions. I confirmed the transactions werent valid and was told they would need to close that account and issue a new card, which is what I experienced when my card had been compromised previously. They then said they wanted to review my account to ensure I had fraud alerts set up and needed my user ID but, not my password, but the last 4 numbers of my EIN number to confirm I was who I said I was. They then told me I would receive a text with a one-time PIN that I would need to verify with them in order to complete the review. They confirmed that all appeared to be in order and would mail out a new credit card later that day. The call concluded at XXXX XXXX. After hanging up, I was troubled that they had asked for my User ID and the Last 4 digits of the EIN # as in prior conversations with Truist, I had not been asked for these details, so I attempted to log in to my business account but could not. Realizing I had been scammed, I called Truist, and when the automated prompts finally got me to a representative, they indicated that my user ID, password, and contact # had been changed so they could access my checking account and that {$9900.00} was being wire transferred out of my account. Note time is of the essence when reporting fraud, and the automated system delayed the reporting and enabled the funds to be transferred. They put me on hold to stop the transfer, and when they came back on the line, and proceeded to File a claim on my behalf. They told me I could expect to hear from Truist within 2 to 5 days. They helped me reset my account user ID, password, phone # and email. When I asked if there was anything else I needed to do to protect my account, they said, No changing the ID and password was sufficient. I was hoping they would take immediate action to rectify the situation. To my dismay, the bank 's response was both frustrating and inefficient. 
The timeline of subsequent interactions with Truist employees is as follows : 1. At XXXX, The funds were transferred from my account to a XXXX XXXX Account in XXXX XXXX. This was when I was on the phone with Truist, and they said they would try to stop the transfer. 
2. **First Follow-Up** : After waiting several weeks without any communication from Truist, I called and spoke with XXXX only to find out that while they had a record of my call, they had no record that a claim had been filed or processed, they took down the information again and gave me case # XXXX and again told me I should expect resolution within 2 to 5 days. 
3. **Second Follow-Up** : On XX/XX/XXXXXXXX XXXX, having received no update, I was compelled to contact them again. Initially, I was told the case # was invalid, but eventually, they found the records and transferred me to a XXXX, XXXX. She asked if I had notified the FBI or Police of the incident when it happened, and I said no because no one had told me to do so ; she provided me with the FBI site and said I should report the crime there and also to the local police department. She asked if I had closed my account and opened a new one because it was still vulnerable, and when I told her no, as no one at Truist had indicated I needed to do so. She set up an appointment for me at a local branch and said she would notify the branch manager that I was coming in to close an account and open a new one due to fraud. She also said that normally, once reported, it takes 90 days for cases to be investigated and resolved, and no one should have told me it would be shorter than that. The advice she provided is advice I should have received during my first contact with the bank. 
4. **Branch Visit** : Upon my visit to a local branch on XX/XX/2023, there was confusion on their part ; Branch Manager XXXX XXXX said they had been told I was there for fraud training, not closing and opening accounts. Ironically It took nearly 2 hours to close and set up the account, while it took the criminal about 45 minutes to access and remove funds from my account. 
5. **Partial Refund and Further Delay** : On XX/XX/2023, I received an email from Truist that indicated that the recipient returned the {$9900.00} wire transfer. To my dismay, when I checked to see what had been returned, instead of a refund of {$9900.00}, only {$220.00} was deposited into my account. On XX/XX/2023, I went to the local branch, showed XXXX XXXX the letter, and asked her to see if she could find out why the letter didnt match the actual deposit. She was on the phone for nearly 2 hours, getting transferred from department to department before being told the investigation was still in progress and that someone would call her back. On XX/XX/2023, XXXX emailed me to say she still hadnt received an update but would continue to follow up. TO me it appeared that Truist didn't attempt to recover funds until my call on XX/XX/XXXX. 
6. **Subsequent Contacts** : On XX/XX/XXXX, having heard nothing I called the fraud department for an update and was told Truist had closed the case, all that was in the XXXX XXXX account at the time of the recovery, XX/XX/2023, was {$220.00}. When I asked why no one had taken the time to let the customer know the status of the case, he had no explanation. I also asked if my claim was covered under the FDIC program and was told that ACH transfers are not. I reiterated that the services I had received from Truist from my initial report to this final were disappointing and asked that the case be escalated, he said he would arrange for someone to call me within 24 hours. 
7. ** Client Advocacy Manager** : On XX/XX/2023, I received a call from XXXX XXXX XXXX a Client Advocacy Manager ; she stated that she had been assigned my case and had been told I was not satisfied with the resolution. I detailed what I had experienced from my initial reporting of the incident to my last contact on XX/XX/XXXX, and that while I had inadvertently provided the scammer with the information that let them access my account, there should have been a process put in place to raise concerns when a user id, password, contact information are changed right before a {$9900.00}, just under the reportable $ XXXX amount, ach transfer takes place. She empathized with me and said she would re-open the investigation, and instead of the normal timeline of 18 days, she would try to resolve it in 7 days. Once again, a promised call did not come, so I tried to reach her, left a message, and still didnt receive a call. On XX/XX/2023, she answered her phone and indicated that Truist was waiting to hear from XXXX XXXX. I reiterated that the lack of urgency from the bank had been distressing and that I was losing faith and trust in them as my financial institution asked her to escalate the matter again or if there was nothing further they could do, to be honest and acknowledge that. 
The financial loss I've incurred is substantial for a small business owner like me, and ultimately impacts the services I am able to provide to my customers and limiting the scholarships I am able to provide. More than the financial ramifications, the emotional toll of constantly following up, coupled with the bank 's evident lack of urgency and procedural inconsistency, has been exhausting. 

Through this letter, I earnestly request the following : 1. **Restitution** : Full restitution of {$9700.00} and, failing that partial restitution. 
2. **Bank Accountability*XXXX : Truist is held accountable for its procedural lapses and inconsistencies in handling fraud cases, as I am sure other customers have experienced similar issues. Truist and other banks should have a direct line to speak with a fraud representative when reporting an incident ; the automated phone prompts give criminals adequate time to transfer money out. I have attached email correspondence I received from Truist as the fraud was taking place ; from my perspective based on the number of changes being made, blocking the account from further activity, and telling me to visit a branch to resolve the matter would have been a better course of action. 
3. **Policy Revision Recommendation** : An advisory to Truist to review and improve their protocols, ensuring future customers do not experience such distressing delays and confusion. 

In conclusion, while I understand that errors can happen, and I played a role that allowed the fraudulent withdrawal, the manner and speed at which an institution reacts to such errors speaks volumes about its commitment to its customers. I implore you to assist not just with my restitution but to ensure that banks are held to the highest standard of consumer protection. Banks, not customers, are the first line of defense against fraud ; that burden has been unfairly. placed on the consumer, and there are no consequences for the financial institutions, so they are, in my opinion, not proactive in preventing it. 

Thank you for your time and attention to this pressing matter. 

Sincerely, XXXX XXXX XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation