Consumer complaint received 2022-07-01
Company: JPMORGAN CHASE & CO.
State: NY
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Problem using a debit or ATM card

Complaint:
On Wednesday, XX/XX/XXXX, I got an email that the JP Morgan Chase was processing the change in email address I made to one of my accounts. I had not changed my email address. So I went to investigate. The account noted in the email seemed OK - except for a new, mystery email- but I still changed the password, etc. 

However, I went to look at my business account and found that 10 transactions had been made on XX/XX/XXXX totaling {$16000.00}. The transactions were ATM withdrawals and direct purchases at gas stations, wine stores, department stores, and XXXX. Additionally, there were another 10 transactions made on XX/XX/XXXX that were still pending and totaled {$17000.00}. 

One additional transaction for {$2900.00} was made at a tire store on XX/XX/XXXX AFTER I had contacted Chase. 

As noted above, the afternoon of XX/XX/XXXX when I noticed the activity, I immediately contacted Chase to create a fraud complaint. I then called again on XX/XX/XXXX when I saw the new charge made that day and essentially recreated the fraud complaint to encompass all of the errant transactions. 

I explained both times that as far as I was aware, the only Debit card for that account was in my possession and that further, I'd not left my home since running errands on XX/XX/XXXX and that security footage from the two points of egress from my building would show that. I work XXXX XXXX and am fairly self-contained. Additionally, I not only do n't drive, but don't even have a driver 's license so I would not be out buying gas and tires. I also pointed out to Chase that I had concerns that an unusual activity alert had not been issued given that I almost never used that card - in fact, the last transaction for that card before this series of transactions was a recurring ACH charge in XXXX of XXXX. And given the fact that Chase had rejected an e-check I scheduled to pay a colleague some time ago - twice - because they thought it might be fraud, but allowed this sudden and massive flurry of transactions to occur without question is troublesome. 

This week, I received a letter from Chase dated XX/XX/XXXX that in part says " We found that the transaction ( s ) was processed according to the information you provided or was authorized. No adjustment will be made to your account at this time. Contact us if you would like to request the information we used for our research. '' I called to request that information, but as of yet have heard or received nothing. Notably, none of the correspondence they sent includes all of the fraudulent transactions. They did temporarily restore some funds which it seems they will now take back given their determination. 

It would appear that this entire situation falls under the consumer protections in the Electronic Funds Transfer Act, which states, " If a lost or stolen debit card is reported to the financial institution before any fraudulent purchases can be made, the consumer faces no liability. 
If a lost or stolen debit card is reported within 48 hours, the consumers liability for any fraudulent transactions is limited to {$50.00}. 
If a lost or stolen debit card is reported after 48 hours but within 60 days, the consumers liability is limited to {$500.00}. '' My reading of the above would indicate that my liability would be {$50.00} or {$500.00} depending on when the counting started. As above, I am also concerned that Chase enabled this extraordinary series of transactions, totaling {$36000.00} in the span of 72 hours on an account that historically has only been used to deposit checks, issue checks and XXXX quick pays, and make transfers ( to my personal checking account ( s ) ). 

And frankly, if I didn't know better, I would swear that a new debit card had been sent out ( the one I had on-hand was set to expire this month ), and it was intercepted. I don't know how someone was able to activate it and Chase is not answering questions about what PIN was used, etc. They've generally said that no new debit card had been sent out for this account prior to the one sent after I made the fraud report, but one representative slipped up an said one had been issued on XXXX ; he then said he made a mistake. But I've got it recorded as I have been recording my calls with Chase 's Fraud reps ( audio available at : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. )

Company response to consumer: Closed with explanation