Consumer complaint received 2021-10-13
Product: Checking or savings account — Checking account
Issue: Opening an account — Account opened as a result of fraud
Company: SOUTHSTATE CORPORATION (NC)

I learned on XX/XX/XXXX that my personal information was used to open an account at at South State Bank on XX/XX/XXXX. I did not open or authorize this account, and I therefore requested South State Bank close it immediately when I spoke to a representative on XX/XX/XXXX. At that time, I requested South State Bank absolve me of any transactions or charges on the account, and the bank take all appropriate steps to remove information about this account from my credit files. I requested confirmation that the account had been closed and wanted South State Bank to remove the inquiry on my credit report. 

On XX/XX/XXXX I received a notice that an inquiry had been made by South State Bank on my credit report. A Fraud Alert had been placed on my credit since XX/XX/XXXX and I had been assured by the credit reporting agencies the alert ensured that no account could be opened in my name without the financial institution getting verbal confirmation from me on my cell number. 

I received a written notice by mail from South State Bank on XX/XX/XXXX with notification that an Online Banking account had been opened in my name on XX/XX/XXXX and was advised to call if I did not initiate the request. I also received a hand written note from a XXXX branch thanking me for opening the account. On XX/XX/XXXX, I immediately called the toll free number for South State Bank and advised that I did not apply for the account and that the application was fraudulent. Customer Service advised that the account was, in fact, opened and the only thing they could do was put a note on the account. I asked to speak with someone in the Fraud Department and was advised that was not possible. The customer service agent advised I must go to a branch location to close the account. 

On XX/XX/XXXX, I also spoke to someone in Digital Services. The representative advised the activity on the account was highly unusual and the account had been opened with an invalid address. Not only was the account opened with an invalid address, but the identity thief was then able to change the address on the account the same day it was opened through an online chat with a representative. The representative advised this was a security failure on the part of South State Bank. 

On XX/XX/XXXX 1 came to the South State Bank office in XXXX, NC and spoke with the branch manager. I presented my valid NC identification along with a Social Security Card, passport and utility bills to verify my identity. I also presented a copy of the police report I had filed in XX/XX/XXXX when I learned that multiple attempts were being made to open accounts in my name at other financial institutions. I had been advised by the Federal Trade Commission that I could not report identity theft unless someone was successful in using my identity to open up a fraudulent account. I took all the necessary steps to prevent someone from doing so and was advised that with the Fraud Alert in place, financial institutions would be required to get verbal confirmation from me at the phone number I listed at the credit reporting agencies in order to open up an account.

Multiple failures at South State Bank allowed this to take place. First, the Fraud Alert was not recognized at the bank and no phone call was made to further verify a legitimate application. An invalid address was used to open the account and the identity thief was able to change the account address on the same day it was opened ( XXXX XXXX ). This address change was allowed before I received a letter notifying me that an account was opened. 

In addition to opening a fraudulent account with bad addresses and information, I am filing this complaint for the following reasons : 1. South State Bank opened a fraudulent account with my personal information but with a suspicious address. The bank failed to verify the address and then let the person who fraudulently opened the account change the address through an online chat less than 24 hours after opening it.

2. South State Bank delayed in providing me with a written confirmation that the fraudulent account had been closed. My first request for this letter was made on XX/XX/XXXX. I only received a letter that the Checking Account had been closed after threatening to contact an attorney. I received that letter on XX/XX/XXXX. 

3. South State Bank delayed giving me a copy of the fraudulent application after multiple requests and even after I provided the necessary documentation. My first request for this application was made on XX/XX/XXXX. I provided a written request on XX/XX/XXXX. I received the application after threatening to contact an attorney. I received that information on XX/XX/XXXX. 

4. I advised South State Bank on XX/XX/XXXX that any accounts opened at the bank or any applications provided with my information were fraudulent. I asked that they check all their systems in the event my information was used for accounts in addition to the online checking. I was told verbally that was the only account. However, I was notified by the bank on XX/XX/XXXX that a consumer loan application, as well as an online savings account were applied for on XX/XX/XXXX. This was the first time I had heard about these accounts. In addition, I was sent a copy of the adverse action letter dating XX/XX/XXXX stating the loan was denied for Excessive Obligations in Relation to Income ( not because it had been reported as fraudulent ). The loan should have been denied on the basis of fraud immediately on XX/XX/XXXX and I should have been notified that the application was submitted. 

All of these actions have caused delays in my pursuit of getting information to the proper authorities to resolve my identity theft issues. The bank put my at further risk by not taking prudent steps to open the accounts with substantiated information to protect the consumer.