Consumer complaint received 2021-04-14
Company: Square Inc
State: FL
Product: Money transfer, virtual currency, or money service
Sub-product: Virtual currency
Issue: Fraud or scam

Complaint:
The fraudulent agency is Square located at XXXX XXXX  XXXX, XXXX XXXX, XXXX XXXX, CA XXXX ; ( XXXX ) XXXX or XXXX. 

I own a XXXX XXXX in FL. While my XXXX  bank account is not with this agency, I have been a customer of theirs since XXXX, utilizing them as my debit/credit card processor for payments from my clients. Each time we run a client payment at my XXXX, Square then deposits the funds into my separate banking institution, a different company, the next business day. Until this past month, I have never had an issue with this company. 

On XX/XX/XXXX, an unknown individual " allegedly '' compromised my Square login information and attempted to " key in '' a XXXX credit card charge in the amount of {$2800.00} at XXXX ; card # ending in XXXX, Square " authorization # XXXX XXXX XXXX. This would be an unknown card holder to us and we did not run this transaction. Most of our transactions are in the amount of $ XXXX {$190.00} for a week 's XXXX fees or the equivalent for a month 's XXXX  fees ( most clients pay by the week only ). Square put a notation of this " fraudulent '' transaction on my Dashboard page with them, however, they failed to notify me via email ( or phone call ), which is how they have always communicated with me in the past. I am not in the habit to view notifications in the Dashboard because of this and therefore was not aware of this " transaction '' until XX/XX/XXXX when I began to investigate why I had not received any of my deposits from my clients. I typically am notified via email immediately each time I or my staff run a client 's card. When it suddenly occurred to me on XX/XX/XXXX that I was missing funds, that is when I learned about the following story : On XX/XX/XXXX, the above referenced cardholder apparently disputed the false charge and the notice on the Dashboard acknowledges that the cardholder had no knowledge of the " authorization. '' This was definitely not a client of mine. I can see the time, the date, the amount, the last 4 digits of the card and type, as well as Square 's authorization code. Like I stated, no notification was provided to me by Square. On XX/XX/XXXX, a similar " transaction '' was keyed in for {$2800.00}, oddly {$2.00} less. This card was a Visa ending in XXXX at XXXX, authorization # XXXX, XXXX XXXX. Again, this transaction was disputed by the cardholder. Again, no notification to me from Square.

As a consequence of these " disputes, '' Square then, it appears, " held '' all of my legitimate credit/debit card payments from my clients through the remainder of the month -- until I became aware and forbid my staff from taking any more payments this way until the matter was resolved. 

I made contact on XX/XX/XXXX with a woman by the first name only of " XXXX '' at Square. XXXX assured me that she " would escalate a report with Square 's Fraud Dept. and that I could expect a return call or email ASAP, however that it " could take up to 7 business days. '' I called the following day, XX/XX/XXXX, anyway to see if there had been any updates yet and to relay that the matter HAD to expedited as I had payroll coming out of my bank account that Thursday and that would put me in a huge deficit. Again, I was reassured that they were " diligently working on it and would contact me ASAP. '' In a subsequent call I placed later on that same day, I was informed by a very " helpful '' individual at Square who provided the following update, after first confirming that I had no XXXX XXXX XXXX  accounts ( hmmm ... .why do you ask when your agency knows very well who I bank with? that never occurred to me ask, though ) : " It appears that someone has attempted to open 4 different bank accounts in your name, but not your Social, with XXXX XXXX. One, ending in the last 3 digits, the only numbers available for me to see, are XXXX. This account was successfully opened with WF and all of some of your transactions from your clients were rerouted to this bank account. 2 of these accounts ending in XXXX and XXXX respectively are in incomplete status of opening ; the 4th ending in XXXX was either terminated or declined, we can not see. '' Interesting. Again, I was assured that I would be contacted ASAP pending completion of the " investigation. '' I was sweetly " advised '' to put a fraud alert on my Social " just in case. '' Which I immediately did, however, my guess now is that was simply a ruse by Square to make it appear that they were being proactive and helpful. 

As a consequence, I had to borrow money from my beloved XXXX-year-old mother-in-law in order to pay my teachers that week their well-deserved money. 

No reported activity has been made using my Social ( which Square does have access to ).

i immediately contacted the Fraud Dept.at XXXX XXXX. The " information '' provided by Square with those numbers and a search of my name revealed no accounts, but they initiated their own investigation. They confirmed for me this morning that upon full investigation there were NO accounts established under my name, my address, my Social or other " ID. '' While accounts can be initiated online, documentation of such would have been mandated in order to complete the opening of said " accounts. '' I next contacted the Fraud Dept. of my bank and I then went in person to my local branch and no fraudulent attempts had been made on the business account that they could determine. I could not close the account as I had payroll and other bills pending yet. As of today still no fraudulent activity has occurred with my bank account. Again, this " activity '' was limited ONLY to Square. 

I then filed a report with the XXXX XXXX County Sheriff 's Dept. in FL to begin establishing the necessary paper trail. 

8 days go by and no return call or email from Square surprisingly, so I called them on the afternoon of Friday XX/XX/XXXX. The gentleman, whose name I did not get, stalled me for quite some time claiming that he was " communicating with their Fraud Team via email and that they were probably backed up as it was taking some time to get a response. '' He would periodically put me on hold and " check back in with to see if I was still patiently waiting. '' You bet I was! At last, he apologized and stated that someone would reach out to me before XXXX Central, my time, as they would be open until then on the East Coast. Surprisingly, no such return call or email. 

On Monday XX/XX/XXXX, I began trying to reach Square again, to no avail. To press any prompt on their system results in nothing but frustrating circles and dead ends. To " press 9 to speak to a CSR results only in the automated response of " I see an account associated with your phone number that is currently under review. We are diligently working on it and will get back to you as soon as the process is complete, '' then it " politely '' disconnects without ANY opportunity whatsoever to speak to a live individual. No matter how many times one might relentless call. Any attempts to respond to their prompts on their website of an alleged live CSR is nothing more than communicating with a computer bot that does not " recognize your inquiry, '' nor does it recognize profanity, evidently. : ) During the phone game, my husband then started his search and last night is when it hit us fully that we were not victims of an outside electronic hacker as Square had " determined. '' Rather, Square is the REAL CRIMINAL. We discovered that they are in serious financial trouble and that there are thousands upon thousands upon thousands of similar horror stories for other unsuspecting small businesses ( they only deal with small businesses, no large corporations -- wonder why? to avoid their large legal teams, hmmm?? ). Likewise, there are thousands and thousands of complaints on the XXXX. Folks are complaining the same types of theft via Square and others, some small amounts, some major. 

The end result is many of these businesses were forced to close their doors because of this as they were still, like us, reeling from the pandemic losses. In our case, we are also still suffering from the ramifications of Hurricane Sally and the destruction of the XXXX XXXX XXXX which has put a great many of our former customers out of work. No customers, no income for our teachers. We take no money ourselves from the XXXX  as we live off of both mine and my husband 's XXXX checks. He is XXXX from XXXX and I have XXXX XXXX XXXX XXXX. Nice, huh? 

Today I am in process of filing every report under the sun to every possible agency that I can -- the FTC, the FL and the CA Attorneys General, The Consumer Finance Protection, the XXXX, you name it. If I have to hold a National Press Conference with all the big news agencies, by all that is Holy, I shall indeed. 

PLEASE HELP RESTORE THE VICTIM 'S MONEY AND HELP US ALL TO PREVENT LOSING THE BUSINESSES THAT WE HAVE GIVEN MORE THAN OUR FAIR SHARE OF OUR BLOOD, SWEAT, AND TEARS TO BUILD.

May God bless and protect every single victim of Square. 

Thank you, XXXX XXXX

Company response to consumer: Closed with explanation