Consumer complaint received 2022-07-19
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: NC
Product: Money transfer, virtual currency, or money service
Sub-product: International money transfer
Issue: Other transaction problem

Complaint:
Purpose of this case is to pursue Bank of America/Merill XXXX to reimburse the {$840000.00} we have lost due to security/banking defects in their banking system. 

Here is a description of the case : I opened a Merill XXXX CMA ( Cash Management Account ) account at Bank of America local office on XX/XX/XXXX. Later on, I added my husbands name to the account. 

On XX/XX/XXXX ( or about XX/XX/XXXX, dates are all by memory now ), XXXX, my husband was under the threat and stress by a scammer to wire out money ( at the time my husband thought it was a legitimate investigation by authorities ) from our account at Bank of America/Merill XXXX to scammer 's accounts at XXXX XXXX XXXX located in XXXX XXXX XXXX for 3 wires totaling {$840000.00}. My husband called Bank of America/Merill XXXX to wire out money using my identity, however, Bank of America/Merill XXXX did not find out that the caller was not me. 

Then on about XX/XX/XXXX, Bank of America talked to my husband over his cell phone asking me to be present at the local bank. My husband told the bank that I was not available and asked if his presence is OK, the bank said yes. The bank asked him to show his driver 's license and he did. Still, at this stage, it seemed the bank did not recognize that the caller was him, not me. On the other hand, even if Bank of America may have realized that the caller was not me, Bank of America did not question my husband when he was at the bank the next day. 

Then on XX/XX/XXXX, {$840000.00} was wired to XXXX XXXX XXXX  from our Bank of America/Merill XXXX account with 3 separate wirings : {$300000.00}, {$300000.00}, and {$240000.00}. 

I had been in XXXX throughout this entire time and on XXXXXXXX XXXX after a XXXX, therefore had no idea what was happening. On XX/XX/XXXX, at XXXX, my husband realized it was a scam so he called Bank of America/Merill XXXX and requested them to investigate with XXXX XXXX Bank immediately XXXX On XX/XX/XXXX, my husband reported to local Police Department ( report # XXXX ). It is on XX/XX/XXXX, both Police Department and Bank of America suggested him to report to FBI and Police Department in XXXX XXXX ( case # XXXX  XXXX ). 

Key points are : 1. Bank of America/Merill XXXX failed to do their necessary due diligence to prevent suspicious activities, and failed to protect interests of their customers. They violated industry norms and their internal business policies ( if any ) for international wirings. In addition, their security system has a serious defect identifying people 's real identity, through name, gender and voices. If the bank had properly realized that my husband was using my identity initially on the phone then the wires could have been prevented, because this should have triggered a strong security warning for suspicious activities. 
2. The bank tried getting me to be present to the local bank for verifications, but obviously did not pursue this path thoroughly, by failing to ask my husband questions such as where she was? where she made the call yesterday ( if the bank believed I made the initial phone call )? how can we reach her to verify? etc. And the bank did not choose to hold the wirings until the verification with me is successful. 

3. To withdraw money from an ATM machine, it has a limit each day. Federal Regulation D and banks limit most transfers and withdrawals from a savings account to a combined total of 6 ( six ) per monthly fee period. If the limit is reached, any additional online, mobile or text banking transfers, including scheduled transfers, may be declined for the remainder of the period. For such big international transactions, shouldnt there be a limit on number of transactions per day? Amount per transaction? Is it right without a limit? For working class families like us, had Bank of America/Merill XXXX ever thought about if the client could afford such potential huge loss? Where is the protection? 

4. As of XX/XX/XXXX, per recorded conversation with their representative, I was told that Bank of America/Merill XXXX does not have written policies for domestic/international wiring transactions which is another defect in their banking system. We also requested Bank of America to provide a copy of the policies at their branch, but they refused, saying they do not provide internal business policies to customers. 

5. Since there were 3 wirings, Bank of America/Merill XXXX should again have raised red flags because very often suspicious activities do split into smaller transactions to avoid Federal investigations or more strict regulations. 

6. Bank of America/Merill XXXX did not ask my husband for proof of purchase, e.g. contract for investment house he said he allegedly was going to purchase in XXXX XXXX. This shows that the banks security screening is defective. 

7. Bank of America did not inquiry why there were multiple recipients, instead of just one closing attorney. Furthermore, for house purchase, the money should be wired to the closing attorneys law firm instead of 3 individuals.

8. With the recipients names, addresses, bank account information provided before wiring, had Bank of America/Merill XXXX checked recipients background for money laundering or terrorist/drug related activities per USA Patriot Act? If recipients background checking is ignored, how can the Anti-Money Laundering ( AML ) program be considered effective and fully compliant? 

9. We had been very conservative in investment with the money deposited at Bank of America/Merill XXXX account XXXX Since XX/XX/XXXX, XXXX % had been with XXXX XXXX  XXXX XXXX XXXX XXXX fund name is by memory only, symbol is XXXX  ), a very conservative and stable value fund with about 2 to 2.5 % annual return. Based on our account banking history and activities before XXXX, XXXX, Bank of America/Merill XXXX should have developed a customer risk profile already for us before the wirings per Bank of America AML Compliance Program . Investment for real estate in XXXX XXXX is completely out of our investment scope or risk tolerance. This is another negligence of Bank of America/Merill XXXX XXXX 

10. On XX/XX/XXXX, Bank of America/Merill XXXX offered us {$2500.00} bonus for opening the account with the condition that the balance will remain at the account for 9 continuous months. I specifically told the representative that I will remain the balance there for 9 months or longer because I absolutely want to earn that bonus. This is another piece of information that Bank of America/Merill XXXX should have used developing my risk profile and learned my commitment staying with Bank of America/Merill XXXX XXXX and this also meant that I would not withdraw so much from the account before XX/XX/XXXX. 

11. On XX/XX/XXXX, I called Bank of America/Merill XXXX for a copy of the documents I signed when opening the account. A representative on the phone told me that they located the documents but can not provide me a copy, I asked why, she said because there were notes written on my applications and they can not share those notes with me. Later they did send me a copy by taking all the notes out, though. I guess information mentioned in item 10 above, but not limited to what mentioned above, could be part of the notes referred to by the representative. question is : why they were afraid of sharing the notes with me? 

12. Bank of America/Merill XXXX did not offer my husband the following or any documents to review before wiring : outgoing consumer international wiring information, wire transfer agreement terms+policies. Where is the documented procedure to follow? Where is the necessary information a client should have read before wiring? Where is the professionalism? This should make the wirings invalid. 

13. Bank of America/Merill XXXX did not explain to my husband the Regulations and Rules for International Wiring out of the USA when in excess of {$10000.00}, or particularly with this large amount, the possible need to report to IRS/FBI, or what tax implications it may have from IRS, etc. If these were explained to him, it was very likely he would not do the wirings at all. 

14. When my husband made the initial phone call to wire out money, Bank of America/Merill XXXX asked him for account passwords, he gave them passwords he had guessed, but those passwords did not work. Then he told the bank he does not know the passwords. This should be another red flag raised by the bank. 

15. When Bank of America/Merill XXXX helped my husband to reset password, the username the bank released was not the username I was told by the bank/Merill XXXX representative XXXX XXXX and the only XXXX to use when opening the account. This is another HUGE security flaw in their banking system. 

16. Bank of America/Merill XXXX did not ask my husband answers to on-line challenge questions I set up before, during the initial phone call for wiring. 

17. It seemed that Bank of America/Merill XXXX did not ask my husband to sign his name nor his thumb print for the 3 wirings. This is another security flaw at Bank of America/Merill XXXX XXXX this again should make the 3 wirings invalid. 

18. Bank of America/Merill XXXX did not ask my husband his own SSN # when he was present in the local bank. For international wirings, this should be essential. 

19. Bank of America/Merill XXXX did not ask my husband to show proof of address ( utility bill or bank statements ). For international wirings, this should be essential. 

20. Bank of America/Merill XXXX did not ask my husband what the recipients date of birth are, if they were friends. Again this shows their security screening is defective. 

21. On XX/XX/XXXX, I requested audio recordings from Bank of America/Merill XXXX for the whole conversation ( verbal and tone ) my husband had with them over the phone made on or around XX/XX/XXXX. The representative, after contacting their investigation team, told me they can not share the recordings but promised to share with me the verbal content of the recordings through her ( this was communicated on their recorded line ). Then I pursued a timeline as to when to share the verbal content part, the representative said she needs to contact the investigation team again, and will call me back, but she never did, even though after I left messages for her 3 times during the next 3 days. Then on XX/XX/XXXX, another representative called me back saying that they can not share the verbal content, and EVEN DENIED that they ever promised me of sharing the content. Where is the business consistency at Bank of America/Merill XXXX ? Do they have any credibility? What are they afraid of? Do they really record conversations as they claimed to the public? 

22. I am sure Bank of America/Merill XXXX had experienced similar fraudulent wiring to XXXX XXXX XXXX  or any other domestic/international banks before, how come the bank has not raised their entire banking security system to the highest level of awareness? How come as of today they still do not have stricter control/concrete measures to effectively prevent suspicious activities? What do they do to protect their customer 's accounts? How could they pass the internal audit and government inspections on FCC, XXXX, XXXX  and sanctions policies? Had they completely and truthfully revealed all the fraud cases due to their security/banking defects to the relevant government agencies/auditors? 

23. My husband initially reported the crime to Bank of America/Merill XXXX on XX/XX/XXXX, at XXXX, XXXX and requested Bank of America do an immediate investigation with XXXX XXXX bank but we are unsure when exactly Bank of America/Merill XXXX actually contacted XXXX XXXX bank. 

24. My husband and I made many follow up phone calls to Bank of America/Merill XXXX for the investigation status but with no results. Around XX/XX/XXXX or XXXX, we called Bank of America/Merill XXXX XXXX XXXX and we were told that the scammers had already taken all the money out from XXXX XXXX Bank XXXX and Bank of America/Merill XXXX can not do anything further. 

As elaborated above, many signs related to the transactions were abnormal and suspicious, but due to banks sever security defects, lack of relevant written policies on international transactions, Bank of America/Merill XXXX failed to do essential due diligence to identify them and failed to take more strict actions to stop the transactions. 

The damage to our family has been tremendous. In additional to the huge financial loss, I and my husband have been enduring physical, psychological and emotional sufferings. Such loss and impact to our life will be far reaching and immeasurable. For ours and general publics benefits, we are determined to pursue justice from Bank of America/Merill XXXX XXXX by having them take responsibility for their many security/banking defects. Therefore, we are seeking reimbursement of the money we have lost and compensations for the sufferings we have been enduring and hope this event will promote an improvement to their banking system. The goal is no more customers will become victims in the future.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation