Consumer complaint received 2023-03-01
Company: JPMORGAN CHASE & CO.
State: AZ
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem making or receiving payments

Complaint:
We are remodeling our home with a Home improvement general contractor. contract calls for payment in multiple phases. My wife and I received the invoices for the first two phases via the business email of the company 's controller. Payments for first two phases were completed using Chase ' Bill pay where Chase mailed a cheque on our behalf to the Business address. 

Shortly after the third invoice, my wife got an email from the same Business email address asking her to use a different bank account and routing number. We emailed back for confirmation and went on to set up the account for online fund transfer. This required the Business email verifying two small deposits. I then transferred the invoiced amount and promptly got a paid invoice.

Two weeks later, the contractor followed up for payment. When I told them its been made via online payment, they replied it they had not sent the oak account details and it was likely a scam and that I still owe a balance. After talking with them, I understand that I was a victim of a Business email compromise scam ( https : //www.ic3.gov/Home/BEC ) After recognizing this as a scam. I called Chase first. They told me that the transfer had posted to the other bank and I should reach out to the receiving bank. I then called the receiving bank to restrict the account. They confimed that they have restricted the account and still have some funds left. They instructed me that I should get my originating bank to send a Hold Harmless and Indemnity Agreement XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ). As my originating bank, Chase has however has refused to request for a reversal of the funds. 

On XX/XX/XXXX, I received an update from Chase that " No action will be taken. '' and when I reached out to the escalations department I received an update on XX/XX/XXXX that " We found that the transaction ( s ) was processed according to the information you provided or was authorized. No adjustment will be made to your account at this time. '' The above update didn't make sense to me because I had already agreed that the transaction was authorized by me and was not requesting Chase to pay me back for the amount I had transferred. I was only requesting that they make a recovery request as suggested by the receiving bank When I reached out the receiving bank, they informed me that Hold harmless and Indemnity agreement from the originating bank is the standard procedure when a transaction is recognized to be a result of a scam. This is also corroborated by the advice from FBI / Internet Crime Complaint Center ( IC3 ) which states " Contact the originating Financial Institution as soon as fraud is recognized to request a recall or reversal as well as a Hold Harmless Letter or Letter of Indemnity. '' Hence at this point, I am seeking the CFPB 's help with this request as I am worried that the restricted account may get unblocked and funds withdrawn while I am trying to get the help from my bank.

Company response to consumer: Closed with explanation