Consumer complaint received 2024-10-07
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: CITY NATIONAL BANK (CA)

Complaint Regarding Fraudulent Wire Transfer and Bank Negligence Account Holder : XXXX XXXX XXXX XXXX  : City National Bank ( CNB ) Date of Fraud : XX/XX/XXXX Fraud Amount : {$48000.00} ( across personal and business accounts ) {$10000.00} from my personal checking account {$20000.00} from XXXX XXXX {$20000.00} from XXXX LA XXXX XXXX. 

Description of the Issue : I have held my mortgage, personal checking accounts, and home equity line of credit with City National Bank ( CNB ) for many years and have been a small business owner with CNB since XXXX. I have always appreciated the personal care and safeguards provided by CNB when handling my accounts. Throughout that time, CNB consistently maintained a routine verification protocol whenever substantial transfers were requested. This protocol provided an extra layer of security, ensuring I was personally contacted to verify such transactions before any funds were disbursed. However, CNB failed to follow its safeguards in this instance, leading to a significant financial loss across my personal and business accounts.

Historically, CNB followed a specific practice : whenever a substantial transfer from my accounts was requested, a bank representative would call me to verify the transaction 's legitimacy before any funds were disbursed. This protocol provided a level of care and protection I have come to rely upon over the years. In addition, I paid for a service called " positive pay, '' a fraud prevention service provided by banks to help businesses detect unauthorized or fraudulent checks or electronic payments. 

However, on XX/XX/XXXX, this protocol was not followed, resulting in a loss of {$48000.00} through a fraudulent wire transfer. On that day, a fraudulent request for a wire transfer of {$48000.00} to an outside recipient was electronically received by CNB at approximately XXXX XXXX The vice president of client management called me at XXXXXXXX XXXXin line with the typical verification procedurebut by then, the funds had already been disbursed. Had the standard protocol of verifying the transfer before execution been followed, this fraudulent disbursement could have been prevented.

Further Issues With Case Handling : After reporting the fraud, I was assigned a representative who admitted she had never handled a case of this nature before. Her inexperience and multiple errors significantly hindered efforts to recover the stolen funds. The mistakes included : Slow Reaction Time and Insufficient Training : Over the weekend, CNB 's fraud department operated with a " skeleton crew, '' I was not informed of this critical limitation. Despite my immediate report, this delay in addressing the fraud allowed the funds to be dispersed without intervention. Furthermore, my representative demonstrated a lack of proper training. She did not get me the necessary form to sign to halt the wire until XXXX XXXX, XXXX hours after our initial phone call, when she realized the fraud had occurred. Worse, she emailed it to an account that had been closed because all my accounts were frozen, forcing me to drive to the bank in person to sign the form for her to fax back to XXXX Bank. After I signed the form, instead of immediately faxing it to the bank, she wasted time despite my explanation that it needed to be faxed urgently. When I suggested following up with a phone call or email to XXXX XXXX  after faxing the form, she dismissed the idea, saying it was being monitored, further delaying any possible recovery. 

Misleading Information : The representative incorrectly informed me that the stolen funds could not be returned without the authorization of the fraudulent recipient, which caused further delays. 

Failure to Prioritize the Case : Despite knowing the situation 's urgency, I was not contacted first thing on Monday morning, which resulted in additional time lost. This and the slow response contributed to CNBs failure to recover the funds promptly.

Failure to Follow Protocol : CNB contacted me at XXXXXXXX XXXX on the same day to verify the transaction, but the funds had already been improperly disbursed. This failure to adhere to the standard verification process led to a loss of {$48000.00}.

Amounts Lost : {$10000.00} from my personal checking account {$20000.00} from XXXX XXXX {$20000.00} from XXXX XXXX XXXX XXXX 

Immediate Notification and CNBs Response : I immediately informed CNB that the transaction was fraudulent. However, CNB 's delayed response in contacting the recipient financial institution ( XXXX XXXX  in Delaware ) allowed the funds to be dispersed, and subsequent attempts to recover the money were unsuccessful. 

Actions I Took : Prompt Reporting : I notified CNB immediately upon discovering the fraud, but the funds had already been dispersed.

Follow-up Efforts : I have spent considerable time attempting to resolve this issue, working with CNB representatives to recover the funds. However, CNBs delayed action and security failures have compounded the situatio
n.

Outcome Sought : Given the history of CNBs protocol to verify all substantial transfers before dispersal, I believe CNBs negligence in failing to follow this established procedure has resulted in the unauthorized disbursement of my funds. Therefore, I request that CNB assume or share responsibility for the {$48000.00} loss.

I seek full reimbursement of the following amounts : {$10000.00} from my personal checking account {$20000.00} from XXXX XXXX {$20000.00} from XXXXXXXX XXXX XXXX XXXXXXXX. 

Additionally, I ask that CNB conduct a thorough investigation into the matter and implement measures to ensure this situation does not occur again for other clients. 

Sincerely, XXXX XXXX XXXX XXXX XXXX