Consumer complaint received 2024-04-26
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Card was charged for something you did not purchase with the card
Company: JPMORGAN CHASE & CO. (TX)

CFPB Complaint - Unresolved Fraudulent Transaction, Insufficient Investigation, and Misinterpretation of Evidence by Chase Bank I am submitting this third complaint to the CFPB as Chase Bank has failed to satisfactorily resolve the unauthorized transaction on my credit card ending in XXXX, despite multiple disputes and evidence provided. 

Sequence of Events : XXXX. On XX/XX/XXXX, an unauthorized transaction of {$840.00} was made by XXXX XXXX on my credit card. 
XXXX. I reported the fraud on XX/XX/XXXX, and a provisional credit was applied to my account. 
XXXX. On XX/XX/XXXX, Chase reversed the provisional credit and the fraudulent charge reappeared on my account. No proper notification was provided, and the result was only available in a hard-to-find message center on their website. 
XXXX. I called Chase on XX/XX/XXXX, to appeal the decision. The representative admitted the communication issue and reopened the investigation after I provided additional commentary. 
XXXX. I filed a complaint with the CFPB, to which Chase responded on XX/XX/XXXX, closing the case with an explanation that the XXXX address matched my records. They failed to address my additional evidence and commentary. 
XXXX. On XX/XX/XXXX, I called Chase at XXXX PM after receiving an incorrect letter stating the appeal was decided against me, despite the open CFPB complaint. The representative was unprofessional, disrespectful, and provided conflicting information about the status of the appeal. She claimed a callback would occur but it did not. 
XXXX. On XX/XX/XXXX, I opened a second CFPB dispute, providing XXXX attachments as evidence of data breaches and security risks associated with my email and Chase account. 
XXXX. On XX/XX/XXXX, Chase responded, stating that my evidence does not support my claim that my account or device was hacked. They acknowledged confusion in their own chain of command and relaying information between departments. 
XXXX. On XX/XX/XXXX, I am submitting this third CFPB dispute to address Chase 's misinterpretation of the evidence and their continued failure to resolve the fraudulent transaction. 
Insufficient Evidence and Flawed Investigation : Chase continues to rely solely on a matching IP address as conclusive evidence to deny my fraud claim. However, this is entirely insufficient, as it is a well-established fact in the cybersecurity field that IP addresses can be spoofed, and devices can be compromised to commit fraud. The bank has failed to properly consider the substantial evidence I provided, which clearly demonstrates that my information was breached, enabling the fraudulent transaction. 
I have provided four pieces of evidence that collectively prove my account was compromised : XXXX. Attachment XXXX : A PDF showing that my email, XXXX, which is associated with my Chase account, has been involved in XXXX different data breaches. This indicates that my personal information has been exposed multiple times, greatly increasing the risk of unauthorized access to my accounts. This pdf originates from the website haveibeenpwned.com a website owned an operated by XXXX XXXX and information security professional. 
XXXX. Attachment XXXX : A screenshot from XXXX XXXX, flagging my Chase account as a high-priority recommendation to change my password due to it being easily guessed and reused. The screenshot also shows XXXX security risks found in my XXXX XXXX, with the Chase account being XXXX of them. This demonstrates the clear vulnerability of my account information. 
XXXX. Attachment XXXX : A screenshot from haveibeenpwned.com, confirming that my email has been involved in XXXX data breaches, corroborating the information in Attachment XXXX. 
XXXX. Attachment XXXX : A recent virus scan of my home PC, revealing XXXX malware detections. This PC contains my passwords, including the one for the compromised Chase account, and provides access to my home IP address, which Chase claims matches the fraudulent transaction. Furthermore, my Chase credit card information is saved in my web browsers on this PC, which I routinely use to make XXXX purchases. The presence of malware on my device, combined with the fact that both my Chase account and credit card information are saved on the same compromised PC, conclusively proves that unauthorized access to my account occurred. A hacker could easily obtain my card information through remote access of the PC via the detected malware. 
XXXX. Attatchment XXXX : A pdf showing that my email, XXXX, associated with my Chase account, has been involved in XXXX data breaches, according Norton.com, a globally renown anti-virus XXXX XXXX. 
The combination of these XXXX pieces of evidence irrefutably demonstrates that my personal information and devices were compromised, leading to the fraudulent transaction being conducted without my authorization. The fact that the unauthorized transaction originated from my home IP address is a direct result of my device being hacked, as the malware allowed the perpetrator to control my PC remotely and access my saved Chase account information. 
Moreover, the fraudulent transaction is entirely inconsistent with my historical spending patterns on this XXXX credit card. Since obtaining the card, I have exclusively used it for purchases from XXXX and XXXX XXXX, which is owned by XXXX. The fraudulent transaction, however, was made by an unknown third party, XXXX XXXX, which bears no relation to my typical use of the card. This glaring discrepancy should have been a clear red flag for Chase, prompting a more thorough investigation into the transaction 's legitimacy. 
Chase 's failure to consider this inconsistency, along with the overwhelming evidence of my compromised personal information and devices, further demonstrates the inadequacy of their investigation. A competent and fair investigation, as required by Regulation E, would have taken into account my transaction history and recognized the highly unusual nature of the fraudulent charge.

Chase 's dismissal of this evidence and reliance on a single matching IP address demonstrate a severe lack of thorough investigation and a failure to consider the full context of the situation. The bank 's investigation appears to lack the necessary diligence and fails to consider all available evidence and circumstances. Regulatory guidance on investigating fraud under Regulation E mandates that banks conduct comprehensive investigations and not rely on a single piece of evidence, such as an IP address match.

The bank 's failure to properly evaluate the evidence I have provided and to conduct a thorough investigation is unacceptable. It is crucial that Chase takes all available information into account and considers the full context of the situation to arrive at the correct conclusion regarding the fraudulent transaction on my account. The evidence I have presented conclusively proves that the transaction was unauthorized and resulted from a breach of my personal information and devices.

Poor Communication and Procedural Failures : Chase 's handling of my case has been marked by poor communication and procedural failures throughout the entire process. The bank failed to properly notify me of the initial investigation results, leaving the outcome buried in a hard-to-find message center on their website rather than providing clear, direct communication. This lack of transparency and accessibility has caused significant confusion and frustration.

Furthermore, during my attempts to appeal the decision and seek resolution, I have encountered unprofessional and unhelpful representatives who have provided conflicting information about the status of my case. On XX/XX/XXXX, I received an incorrect letter stating that the appeal was decided against me, despite the fact that my CFPB complaint was still open. When I called Chase to address this discrepancy, the representative was disrespectful, accusatory, and failed to provide accurate information. They initially claimed the appeal was closed, then backtracked and stated it was still open, promising a callback that never occurred. 
These communication breakdowns and procedural inconsistencies have not only exacerbated an already stressful situation but have also denied me a fair and transparent process, which is contrary to the consumer protection objectives of Regulation E. Chase 's own acknowledgment of confusion in their chain of command and information relay between departments further highlights the systemic issues in their handling of fraud cases.

The emotional and financial toll of dealing with this fraudulent transaction has been compounded by Chase 's poor communication and procedural failures. The bank 's inability to provide clear, consistent information and to follow through on promises made by their representatives has left me feeling frustrated, misled, and without a clear path to resolution. 
It is unacceptable for a financial institution to subject its customers to such a lack of transparency, professionalism, and efficiency when handling sensitive matters such as fraud. Chase 's conduct throughout this process has fallen far short of the standards expected of a major bank and has caused significant harm to me as a consumer. 
Remedial Actions Requested : In light of the overwhelming evidence demonstrating the fraudulent nature of the transaction and Chase 's mishandling of my case, I am requesting the following remedial actions : XXXX. An immediate reversal of the {$840.00} fraudulent transaction and a permanent credit to my account. 
XXXX. A thorough, independent re-investigation of my fraud claim, conducted by a competent and unbiased third party, to ensure all evidence is properly considered and the correct conclusion is reached. 
XXXX. A comprehensive audit of Chase Bank 's fraud investigation practices, customer communication protocols, and staff training to identify and address the systemic issues that have led to the mishandling of my case and likely many others. 
XXXX. The implementation of stricter security measures and fraud detection systems to prevent similar incidents from occurring in the future, as well as improved communication channels and procedural safeguards to ensure customers are treated fairly and kept informed throughout the fraud resolution process. 
XXXX. Appropriate disciplinary action against the representatives who have provided misleading information, failed to follow through on commitments, and treated me with disrespect and unprofessionalism throughout this ordeal. 
Legal and Regulatory Framework : Regulation E, which governs electronic fund transfers, mandates that banks conduct thorough and fair investigations of reported errors, including unauthorized transactions. Specifically, Section 1005.11 ( c ) requires banks to promptly investigate and determine whether an error occurred within 10 business days, or 45 days if provisional credit is provided. Chase 's failure to properly investigate my claim and consider all available evidence constitutes a violation of these requirements.

Moreover, the Consumer Financial Protection Act ( CFPA ) prohibits unfair, deceptive, or abusive acts or practices ( UDAAP ) by financial institutions. Chase 's poor communication, procedural failures, and dismissal of clear evidence supporting my fraud claim XXXX constitute violations of the XXXX 's XXXX provisions. 
Conclusion : The evidence I have provided conclusively proves that the transaction in question was fraudulent and resulted from a breach of my personal information and devices. Chase 's failure to properly investigate my claim, consider all available evidence, and provide clear, consistent communication throughout the process constitutes a gross violation of their obligations under Regulation E and the CFPA.

I urge the CFPB to take swift action to compel Chase to resolve this matter in accordance with the law and to ensure that the bank 's fraud investigation and customer service practices are brought in line with regulatory requirements and consumer protection principles.

If a satisfactory resolution is not reached promptly, I am prepared to escalate this matter further, including taking legal action and involving additional regulatory agencies and consumer advocacy groups. The gravity of Chase 's misconduct in this case demands a strong response to protect myself and other consumers from similar mistreatment. 
Thank you for your attention to this urgent matter. I trust that the CFPB will take decisive action to ensure that justice is served, and that Chase is held accountable for its failures. 
Sincerely, XXXX XXXX