Consumer complaint received 2022-06-07
Company: JPMORGAN CHASE & CO.
State: TN
Product: Checking or savings account
Sub-product: Checking account
Issue: Managing an account
Sub-issue: Banking errors

Complaint:
I'm a XXXX XXXX XXXX, and I was approached through a job board for creatives called XXXX XXXX XXXX by a potential client inquiring about an XXXX XXXX I was told the publication was XXXX  XXXX, out of XXXX XXXX CA which is a legitimate publication which I had looked into. They used the name XXXX XXXX and had full documentation on what the scope of the job was, how much the budget was, image examples etc all of which is how a normal editorial publication would be presented. The budget for the XXXX was {$7000.00}, which was a {$4000.00} XXXX fee and {$3000.00} was for the agency booking talent ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ). The initial deposit check amount was for {$5000.00} from the client, and the {$3000.00} would be sent to the agency ( XXXX XXXX, based in XXXX ). I looked into the agency and found their site, which also appeared entirely legitimate, and contacted the agent I was told to reach out to whose name was XXXX XXXX, again all of this is how shoots are booked and set up, I've been doing this for a decade and done this same type of process several times. I was sent the deposit check and agency fee of {$5000.00} in the mail, and I deposited it electronically into my account through the Chase app. While I waited for it to fully clear, I requested a W9 from the agency I was to be paying and was sent a filled out form with the agency address ( which matched the address on the agency website ) and a SSN for the agent named XXXX XXXX. I then waited until Chase completely cleared the check, I did not touch any of the funds while it was a pending transaction but waited until Chase FULLY cleared this check and put the entire sum of {$5000.00} into my account, before I began to initiate the XXXX transfers for the total {$3000.00} being sent to the agency, and to an account for XXXX XXXX with the XXXX email of XXXX tied to the account. Then 2 days after the initial transfer, Chase pulled the check in its entirety out of my account, after the {$3000.00} funds had already transferred to the agency. I called Chase immediately and they said it had something to do with the signature, so I went to a chase branch and they informed me there was concern with the signature making the check fraudulent. I stepped out of the bank and called a number I found for XXXX XXXX and left a voice mail that I needed to get in touch with someone there, I then XXXX the name of the bank on the check that was sent to me and called the bank directly ( XXXX XXXX in XXXX GA ) and had told the woman who answered the phone what Chase was concerned with and asked if I could read off the account number for her to tell me if the account was or was not fraudulent. She said yes, and I read off the number, she placed me on hold to check and when she came back on the line she said that it was in fact fraudulent. At this time I received a call back from XXXX XXXX who had said this was a scam, they were aware of it, and it's been happening for a while now. By their estimate this has happened to at least 35-40 XXXX who have contacted them about it. They said someone has been using the names of current and former employees, running this scam with all sorts of legitimate documentation and pulling this off. She then told me to email her and she would send me the information they have been sending to the XXXX this has been happening to which included links to the XXXX website and USPS claims site to file reports. I then went back inside of the bank and was told there is nothing Chase could do, or would do, to help me and that they would mark it as fraudulent and begin some type of investigation. When I returned home from the bank I began calling Chase and XXXX to try and figure out what I need to do next, and figure out if I can get my money back after this entire scam. 

Chase and XXXX claimed there is nothing they can do, and it is out of their hands. They've also told me that they can't even see/say what banking institution this money was sent to, which is entirely false. It's a digital transaction to another account through XXXX so they have documentation on where it was sent. I have spoken to people in their claims and fraudulent department, and supervisors within that department, trying to wrap my head around how this could even happen. I don't understand how I am now being held responsible for fraudulent funds that the BANK issued to me, the check was no longer pending, it was cleared ENTIRELY on Chases part and put into my account, the full {$5000.00} not just some initial {$500.00}. That is the entire point of having a bank and using a banking system. Without a bank a check is just a worthless piece of paper, their processes are what give it monetary value, but they claim zero responsibility and are blaming their digital systems for this oversight. Meanwhile I have heard from the individuals at XXXX XXXX, who are trying to help any way they can, that other XXXX  that this scam has been done to have told them that " Some of the banks have reviewed the check when presented to them and have said that the security mechanisms weren't there so they DID NOT ACCEPT THE CHECK for deposit. ", according to XXXX XXXX at the publication. But Chase accepted this check through electronic deposit, pushed it through the pending process, and made the funds available to me after their pending process had completed, and then waited to say it was fraudulent after the fact at least 2 days later, and with NO notification. All they did was take it out of my account, had I never checked my account I would not have even known that it was retracted. I don't understand what I am supposed to do or where I am supposed to go from here to try and reclaim my funds now, it took me 30 seconds and a phone call to find out if this check was fraudulent when Chase said they were concerned, but a tried and true financial institution can't perform that very task with which they solely exist to perform? 

I have all of the email correspondence from this scam, a W9, I have a phone number they sent me messages from, emails to the XXXX account and another XXXX account they sent over at some point, all of the initial documentation claiming that they were this XXXX XXXX, I still have the check they sent over as well so I can supply any and all documentation needed including screenshots from Chase of the deposits. I have already filed reports with XXXX, the USPS, the Florida Attorney Generals Office, and the local PD as well.

Company response to consumer: Closed with monetary relief