Consumer complaint received 2023-08-02
Company: JPMORGAN CHASE & CO.
State: VA
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Deposits and withdrawals

Complaint:
On XX/XX/XXXX XXXX fraudulent withdrawals were made in small amounts from my account totaling in {$1200.00}. Chase reached out to me by text, phone, and email that day warning of fraudulent activity and I confirmed with a representative over the phone that the withdrawals were fraudulent. As of today, XX/XX/XXXX Chase 's investigation concluded that these withdrawals were not fraud claiming " We found that the transaction ( s ) was processed according to the information you provided or was authorized. '' I dispute this conclusion as these withdrawals were not made by me. Additional details follow : I was in my apartment when I received a phone call from a number that appeared to be a local Chase Bank. The phone number was XXXX XXXX XXXX XXXX XXXX ( see attached screenshot ) and they claimed to be with Chase Fraud Prevention. During the phone call they accurately listed my last four transactions on my checking account and then asked me to verify a charge I had not made. I told them this was a fraudulent charge and they proceeded to send a text message with a verification code and collect my information including my ATM pin number.

It was during this phone call that 10 fraudulent withdrawals were made in small amounts from my account totaling in {$1200.00}.

During the phone call, I received an email from Chase ( see attached email ) saying my Chase Card had been added to XXXX XXXX. I did not add this card to my XXXX XXXX XXXX and at no time did it appear in the digital wallet associated with my XXXX XXXX. Speaking with XXXX XXXX, they have no documentation of the Chase Debit card being added to my digital wallet and it is not listed under previous cards associated with my digital wallet. See screenshot of previous cards attached to my wallet.

When the fraudulent withdrawals were made I received an email from Chase Fraud Protection ( see attached email ) warning me of fraudulent charges. I selected the no something is wrong button in the email and proceeded to speak with a Chase Representative describing to me the unusual nature of multiple small amounts being withdrawn from my account and I confirmed these withdrawals were not made by me. The representative then stated they closed my account and removed my card from an XXXX XXXX ( which was not associated with my XXXX XXXX XXXX ), and told me that the charges were pending and would be reversed. 

However, the charges were not reversed. When the charges had been posted to my account the next business day, I called Chase back to check on the status of my account. The representative informed me that the paperwork to flag the charges as fraud had not been processed correctly and the claim had not been opened.

I dispute Chases premise that the charges were authorized, given the sequence of events stated, the attached evidence, and the legal definition of unauthorized Electronic Financial Transactions. Under the ruling from the Consumer Financial Protection Bureau, Regulation E states that : An unauthorized EFT is an EFT from a consumers account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit. 12 CFR 1005.2 ( m ). Unauthorized EFTs include transfers initiated by a person who obtained a consumers access device through fraud or robbery and consumer transfers at an ATM that were induced by force. 

On XX/XX/XXXX, the Bureau further clarified regarding the unauthorized transfer and error resolution provisions under the Electronic Fund Transfer Act and Regulation E, including situations when a consumer is fraudulently induced by a third party to provide their account information or private network rules conflict with the regulation.

This definition applies to the 10 ATM withdrawals totalling {$1200.00} made on XX/XX/XXXX, defining them as fraudulent. They were made by a malicious actor who did not have authority to make the withdrawals from my account. They fraudulently induced me into providing account information and verification, which is protected under regulation E, and therefore I am entitled to a recovery of my funds.

With this information, I dispute the denial of my claim and reassert that these withdrawals were not made by me.

Company response to consumer: Closed with explanation