Consumer complaint received 2024-09-25
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: BANK OF NEW YORK MELLON CORPORATION, THE (TN)

I am writing to file a complaint against the Bank of New York Mellon ( BNY Mellon ) for their mishandling of clear and repeated fraudulent transactions on my account. Their failure to protect my funds, combined with an inadequate investigation and refusal to provide proper reimbursement has left me in severe financial distress. As a full-time dental student with limited resources, I urgently need assistance in resolving this issue. 


On XX/XX/XXXX, I logged into my XXXX XXXX account to verify that my rent had been paid, as the auto-pay feature through my apartments website was malfunctioning. Upon checking, I discovered several unauthorized XXXX purchases pending on my account. These purchases had been made using my XXXX XXXX debit card, which accesses my money market funds. However, I knew I had not made any XXXX purchases or used this debit card for any transactions, prompting me to immediately contact my XXXX XXXX financial representative. 


After further investigation, it became clear that my debit card had been fraudulently used numerous times with the first unauthorized transaction occurring on XX/XX/XXXX. My XXXXinancial advisor informed me that XXXX XXXX outsources its banking card services with BNY Mellon and provided their contact number to report the fraud and cancel the compromised card ending in XXXX. 


On the morning of XX/XX/XXXX, I contacted BNY Mellon and spoke with a representative named XXXX ( sp. ) in their card services department. I reported the fraudulent charges, had my debit card canceled, and reviewed every fraudulent transaction with her. Together, we compiled a report, and I was assured that an investigation would be conducted and that reimbursement should follow if the charges were a result of theft. The total theft amounted to {$5500.00}, spanning from XX/XX/XXXX, to XX/XX/XXXX ( including a charge of {$74.00} that was processed on XXXX after the card was canceled ). I was informed I would receive a decision letter from BNY Mellon Fraud Dept. within 10 days. 


To my shock, on XX/XX/XXXX, I received a letter from BNY Mellon stating that I would only be refunded for the first 60 days of fraudulent activity, beginning XX/XX/XXXXXXXX XXXX XXXX They offered to refund a mere {$940.00} of the {$5500.00} that was deemed stolen. This decision is both unreasonable and unacceptable and financially devastating to me. Not only did BNY Mellon omit 9 days of actual fraud activity by arbitrarily setting the 60-day start date to XX/XX/XXXX instead of XX/XX/XXXX ( the date of the first fraudulent transaction ), but they provided no explanation of any investigative actions taken or instructions on how to appeal their decision. 


After receiving this letter, I called the number they provided and left a message with the representative at extension # XXXX, requesting a return call to discuss this outcome and the steps to file an appeal. Despite multiple attempts throughout the day, my calls went unanswered, going directly to voicemail. I then contacted the original representative from BNY Mellon who helped file my report, and she informed me she would forward my message to a supervisor and I should expect a call back that day. As of today, I have not received any follow-up from BNY Mellon despite my efforts. I reported this issue to my XXXX XXXX financial advisor, whose assistant attempted to help but was equally unsuccessful in getting assistance. 


I have attached all relevant documents, including copies of the fraudulent charges and the letter I received from BNY Mellon. The fraud committed against me is glaringly obvious. Before XX/XX/XXXXXXXX XXXX XXXX I had used this debit card fewer than five times in the last XXXX years and never once for online purchases. Suddenly, beginning XX/XX/XXXX, there were numerous daily online purchases with XXXX and streaming services which should have raised immediate red flags prompting a phone call, email, or text from BNY Mellon to inquire about the validity of charges. Additionally, these purchases were made in XXXX, Florida, and shipped to an address different from the address associated with this card. Despite the dramatic change in transaction behavior with NO evidence of my PIN being required to make these purchases, BNY Mellon failed to notify me of any suspicious activity or flag my account for fraud. BNY failed to exercise even the most basic safeguards that would have alerted me to the theft early on. 


As a full-time student, the loss of this money is financially devastating. This account was a XXXX  account turned over from my parents and is used solely for paying school tuition and rent. I was confident my funds were safe as I used the account only for rent payments via ACH and only have it on file at my school for an infrequent XXXX XXXX purchase. I was unaware that my debit card information had been compromised because my card was stored securely in my home, I do not use this card to make purchases, I do not receive paper statements, my rent is paid via ACH, and I was never informed of any data breach that could have led to its misuse, and never received an alert from BNY.

I firmly believe BNY Mellon failed in their duty to detect, prevent, and protect my account from fraud. Their lack of action has placed me in a dire financial situation, as I will now be unable to pay my rent for the remainder of the school year without resorting to a high-interest loan. This is a clear case of fraud that should have been identified and addressed promptly by BNY Mellon. If there have been ANY instances where customers were reimbursed for fraud beyond the 60-day window, then I expect to be treated equally. I am not at fault for this crime, and BNY Mellon should be held accountable for their lack of security measures. 


I have filed a police report in Tennessee ( Report # XXXX ), which is attached. I also contacted XXXX, who confirmed that the fraudulent purchases were made by an individual with the initials XXXX. in XXXX, Florida. I DO NOT have an XXXX account, have never used this debit card online, and did not flag the card to be used outside of my home state of TN. 


I plead to the CFPB for assistance in helping me resolve this matter to ensure that I am reimbursed the full {$5500.00} stolen from my account, as I am running out of options and funds. BNY Mellons refusal to fairly address this situation and inability to safeguard my account from obvious prolonged fraudulent activity is negligent. 


Thank you so much for your help! I have nowhere else to turn and am hopeful you can help me.