Consumer complaint received 2021-12-06
Company: JPMORGAN CHASE & CO.
State: CO
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Other features, terms, or problems
Sub-issue: Other problem

Complaint:
In XX/XX/XXXX, I was alerted to unusual activity on my Chase Credit Card. Unable to sign into my online account I contacted Chase and learned I had been a victim of fraud. Upon speaking with Chase, I learned : -Fraudsters hacked into my Chase Online account -Fraudsters then changed my mailing address as well as my email address and phone number on file as well as password -Chase mailed replacement credit cards to the new address that Fraudsters supplied -Using my saved bank account information online, the fraudsters then made multiple large dollar payments to my Chase credit card account -Multiple fraudulent payments were made which not only paid the balance on the credit card account, but paid more than the actual balance, creating a credit on my account -Fraudsters then contacted Chase requesting refund checks be issued for the credit amount on the account -Although a fraud flag had been placed on my account, and the mailing address just been updated, Chase processed the refunds as requested by the Fraudsters -Instead of returning the funds in the same manner they were received ( XXXX Payments ) Chase sent refund checks, to the newly updated fraudulent mailing address on my account in the amounts of {$2800.00} on XX/XX/XXXX, {$3500.00} on XX/XX/XXXX and {$10000.00} on XX/XX/XXXX. 

I have filed a claim with Chase and have been unable to obtain a resolution. I am in no way associated with the address used for the refund checks. Additionally I was not notified by Chase in a timely manner to remedy the situation. I received a letter via USPS notifying me of the returned payments ; however, by then the fraudsters had already requested and received the refund checks. 

As I did not have sufficient funds in my bank account to cover all of the large dollar payments, many were returned insufficient funds, resulting in almost {$400.00} in OD fees from my bank. As these payments were returned, they have been billed back to my credit card account with Chase, resulting in Chase showing I now owe roughly {$17000.00}. 

As my financial institution, Chase has a fundamental responsibility to ensure they have controls in place to prevent situations such as this. While I understand fraud is evolving and becoming increasingly sophisticated, Chase should have basic controls in place to detect fraud. My situation shows they lack those basic controls. If a fraud flag had been placed on my account, why would Chase allow checks to be sent? Additionally, as my email and mailing address were both updated immediately before this fraudulent activity, that should have alerted Chase to possible fraud. 

Upon learning of the fraud on my account, I immediately contacted Chase. Under Regulation Z, Chase has a responsibility to investigate and resolve billing errors which they have failed to do thus far. 

If the refund checks were cashed in person ( and not mobile deposited ) Chase can compare the signature on the back of these checks to my signature on file and easily determine I did not receive, benefit from, or negotiate these items. Additionally, as Chase issued the checks, they should easily have access to negotiated copies of such checks. 

My wife and I have spent countless hours on the phone attempting to resolve this issue and have not only not received resolution, are instead being told we are responsible for the amount charged back to the credit card. 

I feel confident in saying there are likely many customers who have been harmed by Chases lack of controls to detect fraud or possible fraud and are financially harmed by their lack of controls. 

I am requesting assistance resolving this matter and appreciate any help you all can provide. 

Thank you, XXXX XXXX. XXXX

Company response to consumer: Closed with monetary relief