Consumer complaint received 2022-09-07
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: KEYCORP (NY)

On XX/XX/2022 I sold a bunkbed on XXXX for {$650.00}. The fraudster overpaid me with a bank check total of {$2200.00} to pay the movers. The deal was to overpay me so I could pay the movers. Although I felt this was odd I felt that as long as the check was cleared it should be fine. The deal was to make sure the check was cleared by the bank before making the exchange. I deposited the check with a teller at the XXXX, New York Keybank branch on Friday XX/XX/2022. I specifically asked how long before the check would be cleared. The teller told me that since it was a bank check, it would be cleared by Monday XX/XX/2022. 
On Monday XX/XX/2022 I looked at my online account and saw that the funds were available but I called Keybanks national number ( XXXX ) at XXXX XXXX  eastern standard time to confirm that the check had cleared. I spoke to a representative on this phone call that confirmed that the check had cleared and I was good to go. I was suspicious, but felt comfort knowing that Keybank confirmed that it was cleared. 
I then paid the Fraudsters movers on Monday XX/XX/2022 through XXXX ( which is linked to my Keybank account ) in 2 separate transactions of {$1000.00} and {$600.00} to a XXXX account for XXXX XXXX. The next day, dated XX/XX/2022, the fraudster said the deal was off ( his father was sick and needed the money ) and wanted the rest of his money back. After 3-4 failed transactions with XXXX to give him the remainder of his money back, he wanted me to send his money through a money order. Since this was extremely suspicious, I called KeyBanks national number ( XXXX ) at XXXX XXXX  on XX/XX/2022. I explained my concerns to the representative that this was very suspicious and was nervous that something was fishy. The representative confirmed that the check for {$2200.00} had cleared. So I sent the money order to the address given to me by the fraudster ( XXXX XXXX XXXX ; XXXX XXXX XXXX ; XXXX MI XXXX ). I sent the money order for {$600.00} ( plus XXXX USPS fees ). Then I overnight mailed it for a charge of {$12.00}. Although everything was very suspicious, I felt good knowing that 2 separate Keybank representatives ( on 2 separate days ) had told me that the original bank check for {$2200.00} was clear. After all I have been a loyal customer for over 25 years and they have always been good to me. I have screenshots of all text communications and envelope with money order available upon request to the fraudster. 

Then on XX/XX/2022, I looked at my online account and saw that on XX/XX/2022 that the original {$2200.00} check from the fraudster was indeed a fraudulent check and that Keybank withdrew the funds from my account ( and later XX/XX/2022 charged me a chargeback fee of {$15.00} for the fraudulent check ). That night of XX/XX/2022, I called the national Keybank phone number and the representative XXXX XXXX ) recommended I go to my local Keybank to start a fraud case. So the next day on XX/XX/2022, I went to the XXXX, New York Keybank Branch. The Keybank case # is XXXX. They also recommended that I file a police report with my local police department. So I immediately did this that day, XX/XX/2022. The XXXX XXXX  XXXX, New York police case # is XXXX. The police indicated they could not do much about this and that the bank should help as bank has further reach and they were the ones who told me that the check had cleared. 


I called KeyBanks fraud hotline sometime the week of XX/XX/2022. The representative told me that they could not give me any information and I could not speak to the investigator who was on the case. The representative told me to go into the local branch to find out the information on the case. On Friday XX/XX/2022 I went into the XXXX, New York Keybank branch. When speaking to XXXX XXXX, he called the KeyBank fraud hotline and was told that because of the XXXX XXXX weekend that the investigator was not working that day. XXXX XXXX said he would try to get more information that day but was unsuccessful until the following week. On Wednesday XX/XX/2022, I called the XXXX, N.Y. Keybank branch and XXXX XXXX said that Keybank declined the fraud claim and recommended that I file an XXXX  complaint by a Keybank branch manager. Since the XXXX, New York Keybank branch Manager was on vacation I went to XXXX, N.Y. Keybank branch on XX/XX/2022. Here I dealt with XXXX XXXX, the branch manager at the XXXX N.Y. Keybank. She was unfamiliar with an XXXX complaint but indicated that she would take care of it for me. XXXX put it into the escalation system for the executive client escalation team. During the week of XX/XX/2022 XXXX called me to tell me that it was declined again. When I questioned whether they listened to the tapes of the calls when I spoke to the KeyBank representatives from when they told me the check was cleared, she indicated that she would reach out to the escalation team again to work on my behalf. On XX/XX/2022, XXXX XXXX called me again and told me that Keybank had declined the fraud claim and that the case was closed. She indicated that the Fraud department at Keybank told her that Keybank cant recover the money and recommend that I go to law enforcement. That I did withdraw the funds and sent the funds willingly. That I was given disclosure agreements when I first opened the Keybank account. That this was a Learning experience for the call center representatives and that they would use it as a coachable moment for them.. XXXX was just going by what she was told. Everyone I spoke to about this at Keybank seemed to see my side of things and went to bat for me. I even spoke to representatives from other banks who felt I had been wronged by Keybank. However, the Fraud investigator and executive client escalation team did not see it this way unfortunately. I asked for this result in writing but XXXX XXXX indicated that this was not Keybanks policy. I was also unable to speak to the investigator about this as only the Branch Manager could speak with them. This is why I am filing this complaint because my bank is supposed to protect me ( especially when I call twice to confirm that a check is good ). It is bad enough some fraudster scammed me, but now I feel I am being wronged by my bank as well. I realize this is a learning experience for me. However, I was suspicious from the get go and trusted Keybank to give me the correct information when asking for support. 








On XX/XX/2022 I started this complain with the OCC. I received a letter of response from KeyBank on XX/XX/2022 ( Letter was dated for XX/XX/2022 ) -In this letter KeyBank did not respond to the fact that I called twice before sending out funds to the fraudster to make sue the check was cleared. Two separate KeyBank employees ( on 2 separate dates ) at the national KeyBank number told me that the check cleared after I explained to them the suspicious situation. I knew the funds were available the next day but I called to confirm that it was cleared. In KeyBanks letter they state that funds were available and they wouldnt know prior to chargeback does not respond to the complaint at all. I have never disputed that the funds were available. I am only disputing that I was told 2 separate days by 2 different people that the disputed check was cleared. They dont even acknowledge this in the reply letter that was sent to me. No mention that I called prior to them reporting the fraudulent check ( chargeback ) to be certain as the situation was very suspicious to me. 
-KeyBank no longer having recordings of these phone calls is convenient for them since it has been an ongoing investigation and I have been working on this all along. When I was told last month by the local branch manager that they ( KeyBanks fraud investigation department ) had reviewed them and they were closing the case, I filed a complaint with the OCC within a week of finding this out ( when the branch manager called to tell me ). 
-I was told by KeyBanks Fraud team on the phone that they could not give me any information and that I needed to go through a local branch manager to get information from the fraud team. This is why I went to the local branch manager to find out updated information. 
-I am not disputing that funds were made available to me or anything of that matter, but that is what KeyBank keeps wanting to push the narrative toward. They told me that the check had cleared ( two times ) prior to me feeling comfortable sending the money to the fraudster. 
-KeyBank representatives at the national number and the local branch manager told me early on that they did have access to these phone recordings and that the investigator had reviewed them. The XXXX branch manager asked the investigator supervisor to also review the tapes. It was told to me that they did acknowledge listening/reviewed these recordings and confirmed what I am saying here. Since for some odd reason KeyBank no longer has these recordings for some reason. They should be able to go back to the investigation team to confirm what was told to me on these recordings. 
-I am sorry these recordings ( in an ongoing investigation ) are not available now as these proved my whole premise. I was told that the investigators and supervisors had listened to the recordings and validated what I have been saying indeed happened. They confirmed that the KeyBank representatives told me on 2 separate occasions, before I sent money to the fraudsters, that the check for {$2200.00} was cleared. This is why I felt it was okay to send out money to the fraudster. They even went so far as to say it was a teachable moment for the 2 representatives at KeyBank ( the banks national number ). This teachable moment should not cost me {$2200.00}.

Again I assume Keybank deleted these recordings once they found out that it was not in their best interest to do so in an ongoing investigation. I at least ask you to talk to the individuals that did listen to these recordings that would prove what I was told. I told Keybank employees my concerns about the deposited check and how I felt it was suspicious. They told me that I had nothing to be concerned about as the fraudulent check had cleared! ( I even clarified that I know that the funds were available but wanted to make sure it was cleared )