Consumer complaint received 2018-08-30
Company: JPMORGAN CHASE & CO.
State: NY
Product: Checking or savings account
Sub-product: Checking account
Issue: Problem with a lender or other company charging your account
Sub-issue: Transaction was not authorized

Complaint:
I am submitting this complaint because my Check Account Bank, XXXX XXXX XXXX is refusing to credit my account in the amount of {$2200.00} which was an UNAUTHORIZED Charge on my checking account because my Debit/Credit Card was Stolen when I was traveling overseas. When I called them immediately to notify Chase that the amounts charged were unauthorized and my card was stolen, I also notified them that it is possible my PIN # was stolen as well. I tried to explain the circumstances of why I believe this to be true. My Debit card was stolen and the unauthorized charge was made on XX/XX/2018. I reported the theft immediately after I realized my card was stolen. 

Chase has sent me a letter dated XX/XX/2018 stating they did an " investigation '' but gave NO details on what is the evidence they found and why they would not believe me, their long-time customer. All they stated in the letter is that since the charge was made with my PIN #, they could not reverse the charge or credit my account for the fraudulent charge. When I called the bank to speak about this matter on XX/XX/XXXX ( or around that date ), all I was told by the Bank representative was that the Bank could not " recover '' the fraudulent charge because my PIN # was used. This is completely confusing. 

I asked the customer service person why they did not BLOCK the fraudulent charges when I made the call almost immediately, after I realized my card was stolen. All the Customer Service representative stated was that since my debit card was a " Chip '' card, it was unlikely that my Pin # was fraudulently obtained. Basically, the Bank is stating that they do not believe me, their customer? And they have no evidence to provide me for their reasons? 

Here are the circumstances that lead to my Debit Card and my PIN # being stolen. 

-- On XX/XX/2018 close to XXXX XXXX, I was leaving the XXXX XXXX in XXXX, XXXX XXXX where I was on a vacation trip overseas. As I was going towards another common tourist site nearby -- the XXXX XXXX XXXX -- someone in a Black Uniform-like clothes approached me and told me that I would have to go to the nearby XXXX machine to get tickets printed out to enter the XXXX XXXX XXXX. 

-- Since this person appeared like he was dressed like the other Uniformed personnel who were working at the XXXX XXXX, I thought he was part of the outside personnel guiding visitors to the XXXX   XXXX. 

-- This person informed me that the machine would print out a ticket and that if I was paying by a Mastercard or Visa, all I had to do was enter my PIN #. This person stated that it could not charge it regularly like a credit card. 

-- Because I was in an unfamiliar place and he seemed to be dressed like the other Guards or Personnel who worked at the Museum Site, I just followed his instructions. The machine that he directed me to get the tickets looked like an ATM machine, however, I was not familiar with the logo of XXXX ( which seems to be a foreign bank ) and I was not familiar with how a ticket machine would look like for the Tourist site at XXXX XXXX. This made me vulnerable to being mislead and misdirected to this machine. I followed this man to this machine who told me it was a machine that will print out a ticket for entry to the XXXX XXXX XXXX Tour Site. 

-- I noticed immediately that the machine they directed me to did not " respond '' or did not print a ticket or anything else when I inserted my card and punched in my PIN #. I was immediately alarmed and turned to the man who had directed me to this machine, but he vanished. It was then that I realized that as I was trying to figure out why the machine was not printing out a ticket, he was right behind me and had taken the card out of the machine without me noticing in such a quick flash. 

-- I was immediately alarmed that either the Machine was a " fake '' machine that somehow takes PIN # s from those entering it into the machine, or that he was able to see over my shoulder and see what PIN # I entered into the machine, or perhaps the fake ATM machine had a mirror or a camera there that could have picked up my PIN #. 

-- I was incredibly shocked and almost numb about what happened. 

-- However, I also immediately went to get help for what happened. I went to the gas station that was down the street from this XXXX  machine and immediately asked those at the Gas Station that I needed to use their phone and report my card stolen. 

-- The owner of the Gas Station, named XXXX, immediately took me to his office and allowed me to use his phone and informed me that he was not surprised this occurred to me. He then went on to inform me that there was a group of " Con-Artists '' and scammers who repeatedly victimized Tourists like myself who were coming from the XXXX XXXX and were walking towards the XXXX XXXX   XXXX. He went on to explain that so many other Tourists from many different countries such as XXXX, XXXX, and XXXX were similarly victimized. 

-- The Gas Station Owner, XXXX, has also tried to have what appears to be a fake ATM XXXX machine removed near his gas station so that these crimes do not keep happening. However, he has not been successful. Also, he has stated that these scammers have physically threatened him and all of his employees to prevent them from getting the police involved. They also warned the station owner and employees to not interfere in their criminal activities ; the criminals wanted to make sure that the Gas Station owner and his employees do not warn potential victims of this scam. 

-- When I was in the Gas Station Owner 's office to try to call Chase and immediately block the use of the card, I was told that these fraudulent charges were still " pending. '' I am sure that I called only about 10 minutes or less after these fraudulent charges were made. As I informed Chase of the fraudulent nature of these charges, I assumed that these charges from then on would be " BLOCKED '' or not authorized for payment to the Merchant. This is my understanding of what happens when you call in to report your card was stolen or that there were fraudulent charges on your account. I also EXPLICITLY stated that my PIN # may have been stolen as well and that I did NOT write my PIN # anywhere on the card. I never have and never do. 

-- After I called Chase to report these charges as fraudulent, I did go to the local police station to try to file a Police Report. However, the Police did not take my report at this time because they felt that nothing had been technically " stolen '' in the sense that I called the Bank ( Chase ) and reported my card stolen and reported the possible Identity Theft issue of the stolen Pin #. I also told the Police that I reported my card stolen and that it seems the Bank had issued the temporary credit. 

-- The local Police Station told me that since it seemed like the Bank may have " blocked '' or stopped the fraudulent charges from going through because I called them, and that I was issued the temporary credit, they declined to write any report. They considered that the matter was taken care of. They seemed to have not considered the importance of trying to stop this Identity Theft crime ring or to prevent other Tourists from being victimized, other Merchants or Banks or financial institutions from being victimized. 

-- Since this was the case, I am unsure what to do now since I already flew back home to the US without having a Police Report to send to Chase. 

-- Additional complaints I have about how Chase has handled this matter are the following : a ) When I called to inform Chase about the stolen Credit/Debit Card and my stolen Pin and they informed me that these fraudulent charges were still " pending '' and had not posted to my account yet, why did Chase not BLOCK or stop the payment to the merchant. My understanding is that if the customer ( me ) has called and reported these charges as UNAUTHORIZED, why would Chase approve or go through with the payment to the Merchants of these charges? I can guarantee you that the Merchants where my Debit/Credit card was fraudulently used, did not check or ask for Picture ID to use for these LARGE purchases ( thousands of dollars ). I believed Merchants were supposed to take precautions and measures to check for ID associated with large Credit/Debit purchases. Merchants certainly do that in the US. My understanding was the Bank had a duty and obligation NOT to approve of payments to go through to Merchants in the " pending '' stage if the customer ( me ) reported these charges as fraudulent. 

b ) The 2nd important complaint I have is : why would Chase allow such large purchases to be authorized on a SINGLE DAY and only within MINUTES. When you see the charges on my account and Chase provides you with the records, you will see that these very large, unusual charges, were made within MINUTES -- I would likely say within 10 minutes. 
Normally, in all my previous uses of this Debit/Credit Card, whenever there was a charge larger than {$500.00} per day, it was declined and Chase sent me emails and text alerts to make sure that the charges were accurate. I understand that my PIN may have been used in these transactions -- however, isn't using a PIN to withdraw thousands of dollars in ONE DAY within less than 10-15 minutes similar to a bank cash withdrawal? 
Since the daily limit is {$500.00} per day for cash withdrawals, why would there not be an automatic decline because of the large amount ( {$3000.00} + ) that was charged within 10 minutes? Again, in all previous interactions, anything larger than a {$500.00} PER DAY charge would have to require me calling into the BANK and specifically telling them ahead of time that it is me using the card and that I am about to make a large withdrawal or large purchase. 
In fact, when I arrived in XXXX, I specifically called Called Chase to let them that it was me and that I had flown now to XXXX from XXXX and that Chase should not be surprised that there are charges on this card in these countries. 
So again, why were these large charges of over {$3000.00} in ONE DAY within 10-15 minutes not automatically declined or FLAGGED until the customer ( me ) called in specifically to tell the bank that I am authorizing these charges? 

So there are many, many complaints against Chase Bank and how they have handled this matter. After calling the CFPB a few days ago and being directed to file this formal complaint, I was also told by the intake person who took information about my case to go and file a complaint with the XXXX XXXX Consulate or Embassy since I am not now able to go back to XXXX XXXXXXXX right now. It was also suggested that I file a case with the Federal Trade Commission to report this case of Identity Theft. I will be pursuing both avenues. 

This situation is particularly galling and disturbing because I am wondering what am I supposed to do now? To fly back to XXXX XXXX just to file the police report now would cost over {$1200.00} + just for the Airplane ticket itself. Not to mention other costs. 

It is beyond frustrating and ridiculous that Chase did not simply BLOCK and stop the payment from going through to the Merchants when they were specifically told that these charges were fraudulent. Yes, the PIN number was used and the Merchants allowed their merchandise to be taken out of the store and essentially Chase would not be reimbursing these Merchants from my account. HOWEVER, I believe these Merchants who were in the nearby area MUST know that there is this Fraud and Scam ring that are preying on Tourists and stealing their Credit/Debit cards in this area of XXXX. 

These Merchants must know that seeing unfamiliar foreign names on foreign Debit/Credit Cards being used, repeatedly by the same people, indicates there is something suspicious going on. It is up to the Merchants to ask for PICTURE ID from these scammers and to protect themselves from having their merchandise stolen from their store by these Crooks. Money from my account should not be used to reimburse them.

Company response to consumer: Closed with monetary relief