Consumer complaint received 2024-02-14
Product: Checking or savings account — Other banking product or service
Issue: Managing an account — Problem making or receiving payments
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION (GA)

On XX/XX/XXXX, XXXX XXXX became a victim of theft by XXXX XXXX and USAA. 
The victim, referred to as XXXX, became a victim of identity theft on or about XX/XX/XXXX, regarding a XXXX XXXX XXXX VIN # XXXX because of a forged negotiable instrument ( promissory note ) signed by XXXX XXXX XXXX Business Manager XXXX. XXXX at XXXX XXXX XXXX by presenting the victims government identifi cation, forged instrument, and fake power of attorney toconceal crimes of fraud for personal gains and profi t. The victim completed the FTC Identity Theft Report, IRS Identity Theft Form14039, along with IRS Form 3949-a Information Referral to the Department of Treasury/IRS in XX/XX/XXXX and XX/XX/XXXX, notifying the local IRS-CI and FBI Offi ces of the fraudulent activity and criminal investigation. Due to the extent of the fraud, the SecretService was notifi ed by government agents along with the DOJ. The victims fi nancial institution, XXXX XXXX XXXX XXXX, conductedan internal audit ( Case # XXXX ) and found that the account resulted from identity theft ; however, on XX/XX/XXXX. XXXXXXXX XXXXexecutives misled the XXXX Police Department regarding Case # XXXX by misrepresenting information regarding theXXXX XXXXXXXX XXXX , violating- 43 CFR 20.510 : Fraud or false statements in a Government matter.- An employee shall not, in anymatter within the jurisdiction of any department or agency of the United States, knowingly or willfully falsify, conceal, or cover up byany trick, scheme, or device a material fact or make any false, fi ctitious, fraudulent statements or representations, or make or use anyfalse writing or document knowing the same to contain any false, fi ctitious or fraudulent statement or entry ( 18 U.S.C. 1001 ). 17 CFR240.15c1-2 : Fraud and misrepresentation : ( a ) The term manipulative, deceptive, or other fraudulent device or contrivance, as used insection 15c1 of the Act section 2, 52 Stat. 1075 15 U.S.C. 78o ( c ) ( 1 ) is hereby defined to include any act, practice, or course of business that operates or would operate as a fraud or deceit upon any person. ( b ) The term manipulative, deceptive, or other fraudulent device or contrivance, as used in section 15 ( c ) ( 1 ) of the Act, is hereby defined to include any untrue statement of a material fact and any omission to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they are made, not misleading, which statement or omission is made with knowledge. The victim enclosed supporting document provided to XXXX XXXX XXXX XXXX XXXX XXXX of the open cases, a copy of the victims Identity Theft Report filed previously on XX/XX/XXXX, FTC report # XXXX. FTC Report number XXXX regarding XXXX XXXX, FTC Memo to Law Enforcement ; Noticespecifi es responsibilities when the furnisher receives notice from a CRA, under section 605B of the Fair Credit Reporting Act, that information you provided to the CRA may be the result of identity theft. Those responsibilities include ceasing to provide inaccurate information to any CRAs and ensuring that you do not attempt to sell or transfer the fraudulent debts to another party for collection. The victim 's credit reports showed the fraudulent items were the result of ID theft ; subsequently, they were removed from the victim'scredit on XX/XX/XXXX. USAA, in bad faith and unclean hands, failed to pay out the claim, stating the victim made a false misrepresentation in a letter provided to the victim on XX/XX/XXXX, conspiring with XXXX XXXX.