Consumer complaint received 2024-11-06
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: NAVY FEDERAL CREDIT UNION (CO)

Date : XX/XX/XXXX RE : Complaint Against Navy Federal Credit Union Fraudulent Transactions Date : XX/XX/XXXX Dear Sir/Madam : I am writing to file a formal complaint against Navy Federal Credit Union ( NFCU ). The complaint concerns multiple unauthorized activities on my accounts, their improper handling of fraudulent transactions on my accounts, and their failure to provide protection under multiple federal laws and regulations. I believe these are connected to a data breach at NFCU that compromised my personal and financial information. 


Details of the Incidents : 1. Impersonation and Fraudulent Activities : Date and Time : On XX/XX/XXXX, at approximately XXXX XXXX  Mountain Time. 

Event : I was contacted by an individual who impersonated an NFCU representative, informing me of supposed suspicious activity on my account. 

Duration : The call lasted about two hours, during which the fraudster was exceedingly professional, using NFCU jargon and even spoofing NFCU 's official phone number and text messages. 

Actions Taken by Fraudster : - Claimed to assist in closing compromised accounts and opening new ones. 
- Ordered a new debit card in my name. 
- Applied for a personal loan of {$1900.00} on my account without my knowledge or consent and expedited the disbursement. 
- Gained access to my XXXX XXXX, which allowed them to : ~Access my phone 's information. 
~Add cards on XXXX XXXX and XXXX XXXX XXXX 
~Use my children 's XXXX XXXX accounts to transfer funds, exploiting their association with my XXXX XXXX. 

- Emptied my accounts through unauthorized transactions : XXXX XXXX Transactions : {$1900.00} withdrawn in separate transactions from my account and my children 's accounts. 
~Savings Account Withdrawal : {$700.00} withdrawn via XXXX XXXX from child 's savings account. 
XXXX XXXX Transaction : {$1400.00} withdrawn from my account. 


2. XXXX and Immediate Actions : -After realizing that I was a victim of fraud, I immediately contacted NFCU 's fraud department and provided detailed information, including screenshots and videos of the call. 
- Filed a police report, an FTC identity theft claim, and placed a fraud alert on my credit reports. 
- Completed NFCU 's fraud affidavit and received a provisional credit of {$4100.00} on XX/XX/XXXX. 


3. Bank 's Response : - Despite informing NFCU that the {$1900.00} loan was fraudulent, they refused to acknowledge it and did not take corrective action. 
- On XX/XX/XXXX, I received an email stating that after a review, NFCU found no error occurred in my account. They indicated the provisional credit would be removed on XX/XX/XXXX. 


4. Attempts to Provide Fraudster Information : - Using my professional skills, I identified the individual responsible for the fraud, who operates out of XXXX, GA. 
- Reached out to various law enforcement agencies, including the local sheriff 's office in XXXX, GA, the detective handling my police report in XXXX, the FBI, and the FTC. 
- Unfortunately, none of these agencies have taken action or expressed interest in the information provided. 


Impact on Me : - Financial Loss : The unauthorized transactions totaled {$4100.00}, including my first full paycheck since resuming work as a XXXX XXXX XXXX. 
- Emotional Distress : The incident occurred on my birthday while my children were trying to surprise me with a gift and cake, amplifying the emotional toll. 
- Legal Risk : As part of my probation terms since XXXX, I am legally prohibited from opening new accounts or applying for loans. The fraudulent loan jeopardizes my compliance with these terms. 
- Breach of Privacy : Unauthorized access to my XXXX XXXX  and my children 's accounts has raised serious concerns about the security of our personal information. 



LEGAL BASIS FOR COMPLAINT : Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693 et seq. and Regulation E Violations : - Under 12 CFR 1005.6 ( b ) ( 3 ), my liability is limited to {$50.00} as I reported unauthorized transfers within two business days - NFCU failed to conduct proper investigation as required under 12 CFR 1005.11 ( c ) - Unauthorized electronic transfers via XXXX XXXX and XXXX XXXX totaling {$4100.00} - NFCU 's investigation must be reasonable and conducted in good faith Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 : - NFCU failed to verify the legitimacy of the loan application despite : ~Existing credit card debt with modified payment arrangement ~Court order prohibiting new credit applications ~Clear pattern of identity theft - NFCU 's failure to correct fraudulent loan reporting damages my credit - Bank violated obligation to ensure accuracy of consumer credit information Gramm-Leach-Bliley Act ( GLBA ), 15 U.S.C. 6801-6809 : - NFCU failed to protect confidentiality and security of my financial information - Data breach enabled fraudsters to access detailed account information - Failed to implement required safeguards against foreseeable threats Consumer Financial Protection Act ( CFPA ), 12 U.S.C. 54815603 : - NFCU engaged in unfair and deceptive practices by : ~ Failing to prevent unauthorized account access ~ Refusing to acknowledge clear evidence of fraud ~ Ignoring obvious red flags ( court orders, spending patterns ) ~ Inadequate security measures allowing spoofed communications Identity Theft and Assumption Deterrence Act, 18 U.S.C. 1028 : - Fraudulent account opening ( XXXX ) - Unauthorized loan application - Identity theft evidence provided to NFCU and XXXX enforcement UNAUTHORIZED ACCESS TO MINORS ' ACCOUNTS : The severity of this security breach is significantly amplified by the unauthorized access to and exploitation of minor children 's accounts : 1. Children 's Online Privacy Protection Act ( COPPA ) Implications : - Fraudsters gained unauthorized access to minor children 's XXXX XXXX accounts- NFCU failed to protect financial information of minors - Violation of 15 U.S.C. 6501-6506 regarding children 's private information 2. Scope of Compromise : - Unauthorized access to parent 's XXXX XXXX  enabled access to family accounts- Minor children 's financial accounts were exploited for fraudulent transfers- Created additional emotional distress as this occurred during children 's attempt to purchase birthday gifts 3. Enhanced Security Obligations : - Financial institutions have heightened responsibility to protect minors ' accounts - NFCU failed to detect suspicious patterns involving children 's accounts - No additional verification attempted for transactions involving minors ' accounts AGGRAVATING FACTORS : 1. Timing and Circumstances : - Fraud occurred during family birthday celebration - Children were actively attempting to purchase birthday gifts at time of compromise - Emotional impact on minors witnessing financial exploitation - First full paycheck after XXXX XXXX  XXXX  was stolen 2. Pattern of Security Failures : - Breach extended beyond primary account to family members - Multiple layers of security compromised simultaneously - Failure to detect unusual pattern of transfers between adult and minor accounts - No enhanced verification for transactions involving minors ' accounts FACTS SUPPORTING VIOLATION CLAIMS : 1. Immediate Reporting and Documentation : - Fraud occurred XX/XX/XXXX, at approximately XXXX XXXX  MT - Same-day reporting to NFCU fraud department - Filed police report, FTC complaint , and identity theft report - Completed fraud affidavit as requested - Identified perpetrators using skills as former private detective and reported to relevant authorities - Offered screenshots and video evidence of fraudulent call, perpetrator ( s ) identity and whereabouts 2. Clear Evidence of Unauthorized Activity : - Transactions inconsistent with established spending patterns - Multiple rapid transfers via XXXX XXXX and XXXX XXXX ( {$1900.00} loan amount split into multiple transactions ) - {$700.00} unauthorized transfer from savings via XXXX XXXX - {$1400.00} unauthorized transfer via XXXX XXXX XXXX Court order prohibiting new credit applications - Existing modified payment arrangement with NFCU for credit card debt 3. Systemic Security Failures : - Data breach compromised account security - Fraudsters able to spoof NFCU phone numbers and messaging - Access to accounts despite security measures- New account opened without proper verification - Failure to detect suspicious pattern of rapid transfers This matter requires immediate attention as NFCU has indicated they will remove the provisional credit on XX/XX/XXXX, which would cause significant financial hardship. 

I request the CFPB investigate this matter and require NFCU to properly handle this fraud claim in accordance with all applicable federal laws and regulations cited above. 

Sincerely, XXXX XXXX XXXX