Consumer complaint received 2023-03-05
Company: JPMORGAN CHASE & CO.
State: NY
Product: Money transfer, virtual currency, or money service
Sub-product: Domestic (US) money transfer
Issue: Fraud or scam

Complaint:
Summary : On XX/XX/XXXX I had a fraudulent charge of {$99.00} in my Chase business checking account that resulted in a {$33000.00} wire transfer scam. Between the fraudulent {$99.00} charge, the {$33000.00} wire transfer, and the {$25.00} wire transfer fee, I have lost {$33000.00}. 

What happened : On Friday, XX/XX/XXXX at t XXXX EST I received a call notifying me of a fraudulent charge in my Chase business checking account from the same telephone number that is listed on the back of my Chase business debit card ( XXXX ). This followed several previous calls from the same number that morning, as well as a text message claiming to be an Early Fraud Warning. 

The caller had enough of my personal information and enough insider information to effectively pose as a representative from the Chase fraud department calling to help reverse damages and secure my account after a breach. He could most definitely see when I logged in and out of my Chase banking app. I dont remember the specific information he provided and I provided, but my name, phone number, address, birthdate, the last four digits of my social, last four digits of my bank accounts were confirmed. This included my personal savings, personal checking, and business checking. 

He instructed me to check my balances and confirm that I had indeed not made the fraudulent {$99.00} transaction at a XXXXXXXX XXXX  in XXXX, Florida. I confirmed I had not. He sent me a variety of verification texts as well as an email, which I requested as a precaution to confirm that I was indeed speaking with Chase. In these communications he identified himself as Supervisor XXXX XXXX, agent # XXXX, and that this was case number XXXX. He then induced me to transfer all of my money in my personal checking and savings accounts into my business account, then perform a sequence of steps that he told me were necessary to reverse a fraudulent wire transfer that he claimed had been initiated earlier in the day. This resulted in a coerced wire transfer in the amount of {$33000.00} sent to an individual in Texas. I did not take a screen shot of the wire transfer details before I lost access to my business checking account, but I seem to recall their name was XXXX XXXX and the bank was in XXXX, Texas. 

In short, I was induced to steal money from myself by a fraudster who had enough of my personal information to make a fraudulent charge, enough inside knowledge of Chase bank systems to pose as a Chase representative, and enough experience to effectively ease my suspicions along the way. 

What I have done to try and resolve it : Immediately after I got off the phone with the fraudster, I called Chase business customer service at the number on the back of my card ( XXXX ), the number I had just hung up the phone with. I made this call at XXXX EST. I described my recent phone call, naming the Chase fraud department representative I believed I had been speaking with, and indicated the actions I had taken and that I was awaiting the return of my funds. 

The fact that I had emptied my entire personal checking and savings accounts, transferred the money into my business account, then made a large wire transfer in the span of two hours apparently did not raise any red flags. I was not transferred to the Chase fraud department. I got off the phone with the Chase business customer service representative feeling assured that my earlier interactions with the person who turned out to be the fraudster had been legitimate. 

It therefore wasnt until the following morning, XX/XX/XXXX at XXXX EST, when I called Chase again at XXXX and was transferred to the fraud department , that I understood that my identity had been stolen, a fraudulent charge had been made, and that I had subsequently been coerced into a wire transfer scam. I understand this delay was crucial. Had I been alerted to the fraud by the Chase business customer service representative I spoke with at XXXX the previous afternoon I may have been able to quickly recall the transfer. 

I was instructed to update my phone, change all my passwords, go to my nearest Chase branch to freeze my accounts and initiate a wire recall. I was also told that there was no guarantee my funds would be restored. I went to my local branch and was fortunate to work with a banker willing to spend several hours on my case. She secured my personal accounts, closed my business account, and initiated the wire recall, but again told me that there was no guarantee my funds would be restored. 

She listened as I told her about my experience and wrote and filed a claim on my behalf. Soon after filing the claim, we learned that it had been rejected because I had initiated the wire transfer myself - no matter than I had been coerced, and that the coercion followed a fraudulent transaction, and that my identity had been stolen. The banker also wrote and filed an internal complaint, which I understand is pending but also comes with no guarantee that Chase will take responsibility for this event and that my funds will be restored should the wire recall fail. 

I hope I am not filing this CFPB complaint prematurely. There is a slim possibility that the wire recall will work, and that the internal Chase complaint will yield some response, but the lack of any guarantee is unnerving. It is clear Chase is not inclined to take responsibility for this financial event, which would not have occurred had my identity not been stolen and the fraudulent transaction not taken place. 

The loss of {$33000.00} dramatically impacts the choices I can afford to make, such as whether to buy a house and have a baby. As a XXXX, I have grown up with online banking and successfully navigated and discriminated between real and fraudulent activity. I understand it requires vigilance, and that banks rely on customers to remain alert and to report fraudulent activity. I tried to do so by calling Chase back immediately after the incident, and it shakes me deeply to hear from Chase that the burden is on me for a fraud that I ( and apparently they ) could not perceive. 

I deeply regret opening my business account last year, now that I understand the amount and caliber of fraudulent activity Chase small businesses customers face.

Company response to consumer: Closed with explanation