Consumer complaint received 2019-10-22
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit repair services
Issue: Fraud or scam — 
Company: DISCOVER BANK (IL)

What was the Fraud that occurred? 

On XX/XX/XXXX XXXX sent an email to XXXX from an employment advertisement on XXXX regarding a XXXX XXXX Manager. 
On XX/XX/XXXX XXXX XXXX sent an email reply to XXXX stating a contract will follow and questioned, do you have Federal Security Clearance. XXXX stated he did not but worked for the XXXX XXXX XXXX in the past. 
On XX/XX/XXXX, XXXX XXXX emailed the XXXX contract and documentation as to the legality, authenticity and validity of the company to XXXX. 
XXXX hired Lawyer XXXX XXXX to verify that the company and the business contract was valid and legal. Attorney XXXX sent an invoice for his services. 
Upon the determination by XXXX that the contract and company was verifiable as a US corporation and contract business concept was reviewed, XXXX entered into an employee position as XXXX holdings as a Purchasing/Supply side manager. 
XXXX XXXX provided a supervisor who gave details of a training period of eight purchases to be sent to an XXXX facility customer overseas. 
XXXX was provided instructions from XXXX XXXX for that training period of time. 
XXXX was instructed to use pay off any balance on his credit card with XXXX  XXXX XXXX account number to verify the company was operating in good faith. 
XXXX was instructed to make purchases of retail items during this training period to purchase XXXX, XXXX, and laptops and was instructed to make plans to fly to New York after for further training and to receive a XXXX XXXX XXXX XXXX Credit card with a purchase limit of {$80000.00}. 
During the course of four weeks XXXX completed eight purchases per his employment agreement and training period on XXXX accounts ending in XXXX,XXXX,XXXX and Discover Card account ending XXXX and was reimbursed by XXXX XXXX XXXX account to reflect a balance of XXXX on each occurrence. 
After each purchase XXXX was instructed to use XXXX   XXXX XXXX bank account to reimburse his charges. 
o Account number : XXXX Routing Number ( RTN ) : XXXX Account Type : SAVINGS, PERSONAL Bank name : XXXX XXXX XXXX o Account number : XXXX Routing Number ( RTN ) : XXXX Account Type : CHECKING, BUSINESS Bank name : XXXX XXXX XXXX This account was not used but given after the other did not work. 





How Did the Fraud happen? 

On XX/XX/XXXX XXXX used the XXXX XXXX XXXX account to pay a previous dept of {$2400.00} on XXXX XXXX balance upon the direction of XXXX XXXX Manager of XXXX XXXX. This was conducted though the XXXX app. The account numbers were entered into the application and the transaction was confirmed as a XXXX balance. 
XXXX applied the XXXX XXXX XXXX account number to pay XXXX XXXX Credit card with a balance {$8100.00} on XX/XX/XXXX. 
26 days later on XX/XX/XXXX XXXX received NOTICE the transaction was not valid on the XXXX app and was contacted by a XXXX representative seeking a monthly payment of {$300.00} On XX/XX/XXXX XXXX discovered from both the phone conversation and via email from XXXX XXXX that XXXX XXXX XXXX transactions were invalid from both speaking to the 20 year Discover Card customer service representative regarding an online alert from Discover XXXX app. 
On XX/XX/XXXX, XXXX the Discover Card representative informed XXXX that the failure of XXXX  XXXX XXXX to process a transaction is most likely an employment crime/ scheme designed to defraud XXXX and that all transactions from XXXX XXXX XXXX including payments were most likely involved in money laundering or other criminal activity from a foreign country/ entity. 
On XX/XX/XXXX, XXXX received an email from XXXX XXXX reporting a failed XXXX  XXXX XXXX transaction. 
At this point on XX/XX/XXXX, XXXX drove to the police department to speak with XXXX XXXX ( XXXX ) for report number XXXX at central time XXXX XXXX called XXXX XXXX, DISCOVER and XXXX  XXXX XXXX to report fraud activity and to dictate details to include police report on XX/XX/XXXX. 
At this time all previous card payments were REVERSED by the process of declined bank transaction. 

My point of contention is that all transactions looked good until I called XXXX  XXXX XXXX and told them that the account they own has been hacked/stolen/ or is in use by criminals. In addition, all the banks show the date of decline as the same date of purchase, THIS IS MISLEADING AND FALSE. I have attached an example of the longest of these from my XXXX slate credit card account. This example shows on XX/XX/XXXX a payment was made and on the same day was returned. This is not the case. When I learned from the Discover Card employee on my last attempt to make a payment and he alerted me to the fraud saying. IN 20 years of working with Discover I have not seen any of these employment / purchasing contracts pan out. ON XX/XX/XXXX I called XXXX   XXXX XXXX and ALL of these transactions were reversed. 

My questions for you are Does this misleading XXXX  balance mechanism open a portal for abuse between banks? XXXX XXXX says they do it as a courtesy. How many fraud transactions have been conducted because of this business practice? I believe this aspect of banking with Credit Cards is wrought with abuse and allows for fraud to occur. See Picture 1 for transaction {$8100.00} on XX/XX/XXXX. This is a typical example of all statements that show the reversal on the same day as the purchase. 
How can Credit card companies go back in time and change statements after the fact to demonstrate a misleading account ledger? It does not show a chronological tally of events but rather one that fits the bank. This is true for Discover, XXXX, and XXXX XXXX. They all changed their reporting after I called XXXX XXXX XXXX to alert them of fraud on the account number given to me. 
How can XXXX XXXX XXXX be held accountable for the actions of their account holders when they are in essence money laundering and in violation of the US Patriot Act and RICO law? I have emails directing me to make purchases and pay off transactions by the company XXXX by XXXX XXXX. That company used XXXX   XXXX XXXX financial institution to conduct business. They are criminals residing at the website XXXX. This website is up and running and using accounts currently from XXXX XXXX XXXX. Discover and XXXX XXXX all accept funds from this bank that is actively working with a criminal enterprise in a foreign country. 
How much money does XXXX XXXX XXXX earn from fees and transaction costs from these criminals? How much does Discover and XXXX XXXX????? 

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