Consumer complaint received 2021-10-14
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: NY
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was result of identity theft

Complaint:
On XX/XX/2021, I was contacted by someone named XXXX XXXX via XXXX direct messaging, who claimed they were a representative from a record label, XXXX XXXX, run by the XXXX XXXX, XXXX, and that they potentially wanted to do business with me as an XXXX. They said researched my work and wanted me to fly to XXXX and meet with other staff from the label and discuss a deal. XXXX promptly sent me a compliance letter that said that they needed to access my bank accounts in order to send me funds to aid with any preparation I needed for the trip. I agreed to the terms of the letter and sent them first my bank account information from USAA Bank, where I had an account at the time. XXXX then had 2 checks deposited to my account at {$5000.00} each. After several days, the checks were found to be fraudulent. But not before I was asked by XXXX to begin sending some of money back to him via XXXX. His explanation was that those checks were from sponsors who could only wanted to make the check out to me since I'm the XXXX the sponsors wanted. The flight had to be booked with a private company and since the label was preparing the accommodations, they needed the money to help with those logistics. So thats when I had started sending several XXXX transactions back to what I thought were various staff people at the label. I did the transactions throughout the week of XX/XX/XXXX, until I had reached XXXX daily limits. There were so many transactions I was barely keeping up as you can not send large amounts of cash through XXXX. The transactions totalled about {$9000.00}. USAA had not contacted me that they suspected fraud until later, via letters they sent me, saying they wish to cease banking with me because they believe I was responsible. XXXX had also eventually closed my account. 

I had also given XXXX access to another bank account I had, XXXX XXXX XXXX XXXX. XXXX and company tried sending a fraudulent check there and XXXX XXXX immediately spotted the fraud. They closed my initial account and issued me a new account number, no questions asked. I still hadn't realized I was involved in a scam at the time. But I had no choice but to let XXXX take action. Today, XXXX is the only bank I have available to me due their proactivity. 

I gave a third bank account, XXXX XXXX Business Checking, that belonged to my business to XXXX in the hope of still being able to do business with the record label after USAA shut me down. At that point, more checks were issued to me. Several were sent by Same day FedEx in large amounts ranging from $ XXXX to $ XXXX. One check for XXXX, XXXX asked me to deposit in the XXXX XXXX on XX/XX/2021. I did so through the ATM Machine. Then I was asked to spend some of that money for myself and take out {$1000.00} and send to him through gift cards and more XXXX transactions. This is when I began to get uncomfortable because up until this point, everything was electronic and now I had to do more transactions in real time. Thats when the tactics changed. About a week after the XXXX XXXX check was deposited, it was returned. I told XXXX about all the returned checks and he urged me to press on assuring me he would fix the bank situations. As frustrated as I was I didn't feel like I had any other choice but to let it play out as he told me he didn't need any money from me, just the access to my accounts. XXXX attempted to pay my credit card debts as well. I owed {$7600.00} to a XXXX XXXX credit card and he attempted to pay that in full. He also attempted to pay off credit card accounts I have with USAA. One had a balance of about {$5800.00} at the time which is under a credit repair program from a previous unrelated financial situation and the account not usable. The second USAA credit card was much smaller and one I used for emergencies. All of those payments were eventually returned. 

The final case that made me realize this was real scam, as elaborate as it was, was a final check to a 4th bank account I had with XXXX. I was sent another $ XXXX check. It was first sent in the name of my XXXX, XXXX XXXX XXXX. When I tried to deposit it with XXXX, they wouldn't let me even as I proved the business belonged to me. So I told XXXX and he promptly sent me a check with my name on it for deposit on XX/XX/XXXX. The check was cleared by the bank and deposited to my savings account. XXXX then asked me to take out {$15000.00} cash and wanted $ XXXX in XXXX gift cards. So I did that and sent him the codes on the back. The remainder $ XXXX was sent at a later date, also with gift cards. Days later, XXXX tells me that the check was returned with my account frozen. XX/XX/2021, I was due my monthly payment for XXXX XXXX XXXX from the VA and those checks go to my XXXX account. When It was deposited, my account being frozen prevented me from accessing those funds. I have a total of {$3800.00} in that account that I can't touch because it goes toward the amount of the returned check, which after the $ XXXX cash left $ XXXX negative balance. 

XXXX has informed me that my account has been assigned to specialist to investigate the fraud but I haven't received any notice since. USAA has terminated their banking services with me. And XXXX XXXX has closed my fraud claim and my accounts with them.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation