Consumer complaint received 01-07-2018 about Money transfer, virtual currency, or money service (Domestic (US) money transfer) with BANK OF AMERICA, NATIONAL ASSOCIATION (NY).
Issue: Fraud or scam

Complaint: I sold a large piece of furniture to an individual on XXXX in XX/XX/XXXX. The buyer explained to me that he lived out of state and would be sending a mover to come pick up the item. 

The buyer sent me a cashier 's check via XXXX received on Friday, XX/XX/XXXX, in the amount of {$1700.00} ; {$400.00} for the cabinet and the remaining {$1300.00} for the movers fee. The cashier 's check was from the bank, XXXX XXXX XXXX XXXX I deposited the check the next day, XX/XX/XXXX, at a Bank of America ATM in XXXX, NY. The buyer was supposed to send the movers the following week to pick up the item once I was able to confirm the check had cleared in full. 

On Monday, XX/XX/XXXX, I went into the Bank of America branch on XXXX XXXX to check the status of this deposit. I was told by the branch supervisor that this check had been collected from the sender 's institution and was therefore posted in full on my account. After explaining that I was exchanging money with someone I do not know, he advised me to wait 1 more day to be 100 % certain the check cleared. There was not mention or suggestion of delaying this transaction to protect against potential fraud. You would think a branch supervisor would have the knowledge and the initiative to make sure their customers safeguard against the worst possible scenario. 

The next day, Tuesday XX/XX/XXXX I returned to the same bank and confirmed with the same branch manager than the funds had cleared and were now available in my account. I told the sender that he could notify the movers to pick-up the item that day. Knowing that I would not be home in time to receive the overs, I withdrew the {$1300.00} movers feed in cash on Monday and left it with my partner to handle the transaction once I was able to confirm the check has cleared with the bank. 

The buyer then notified me to tell me that he needed to pay the moving company in advance and the actual movers could not accept cash at the time of pick-up for liability reasons. Therefore, he requested a refund in the amount of {$1300.00} to pay the movers in advance. I told him I was not comfortable with wire transfer so he suggested to use the XXXX app hosted by Bank of America. 

Believing in the safety and security of Bank of America as my trusted institution for 15+ years, I felt safe and secure about transferring money to someone within the network for the following reasons. 

1. A Bank of America supervisor told me on 2 separate occasions that the sender 's cashier 's check had cleared in full and was ready to be withdrawn against. 

2. Transferring money using a " trusted app '' within my Banking network seemed to be the most secure transaction. I never believed a bank would stand behind a scammer using the bank 's own resources against them. 

Little did I know this was all completely untrue. I successfully made a two bank transfers to this individual using the email provided to me. The first transfer was a test for {$1.00}. Once the buyer confirmed receipt, I then transferred the remaining {$1300.00} balance on XX/XX/XXXX. 

Given the delay, pick-up was rescheduled for the next evening, Wednesday XX/XX/XXXX. There was no additional activity on the account that day. When I was leaving work, I received a notification displaying a negative balance on my account. I immediately called the bank to see what happened and I was told there was a hold on the cashiers check payment. I asked what the issue was and they told me they could not confirm until the following business day once the status of this reverse transaction was updated in the system. 

Immediately fearing the worst, I explained that I had just transferred funds against this deposit to another Bank of America account using the XXXX app. I asked them to reverse this transaction and I was told that could not be done until the issue cashiers check was finalized on my account. Instead the representative told me to go to the police station to file a report because it appeared the check was fraudulent. The rep explained that having a police report would allow the bank to step in and reverse the transaction if in fact, fraudulent activity had taken place. 

Worried, but confident in my banking institution, I went to the same bank the next morning to have a copy of the cashiers check printed for the police. I told the same supervisor that falsely advised me earlier in the week, the situation and was told with a police report, the bank would be able to reverse this transaction so I could recover my funds. 

I went to the local police station and filed a report for grand larceny on the morning of XX/XX/XXXX. I now have a detective working this case. 

I understand there are two every different issues here. The police will deal with the scammer, hopefully with the cooperation of the bank. The real issue I would like to focus on here is ... 

1. Bank of America 's inability and unwillingness to step in to a situation once fraud has been committed 2. Bank of America 's inept method of confirming check clearance to safeguard their customers against fraud. Whether this is to be chalked up to an industry misconception or simply a manager 's lack of responsibility is debatable 3. The federal government 's requirement to make funds available the next business day, with the ability for the funds to be deemed fraudulent and revoked up to 3 weeks later. The government and the banking institutions should be designed to protect their customers, not create an ecosystem for scammers to operate with their in depth industry knowledge, as regular everyday citizens are blinded by these intricate loopholes. 


1. To start with the bank ... 
I have spent hours on the phone with Bank of America, only to be told they can not recover the funds if the buyer does not consent. I was told conflicting information ; on one occasion I was told the cashiers check was fraudulent and it successfully passed through 2 layers of the banks fraud detection, resulting in a 3+ day notification delay. On another occasion, I was told the sender requested a stop payment therefore the bank was unable to collect the funds as initially intended. 

In an effort to reimburse the funds, I was told my claim had been closed because the sender did not respond to their request regarding this case. Apparently, police reports mean nothing, as the scammer can simplify not respond or say n to returning funds. Quite the system considering it takes months to get subpoenas to take real action. 

2. I have since been in contact with the internal affairs investigation unit who claim they do n't record customer transactions so they are unable to verify whether the brand supervisor to me the cashier 's check has cleared in full. Since it took over 2+ months for them to even get in contact with me the brand supervisor has ample time to tell the staff he works with everyday how to answer the investigator 's questions, so he would not be at fault. 

Irregardless, I know the difference between right and wrong. There is no way a reputable institution should be able to falsely inform their customers time and time again, while failing to rectify a situation in which they support fraudulent activity within their institution. The fact that another Bank of America account is allowed to be used to scam customers is outrageous and the XXXX app is designed to support that type of activity. If the XXXX app allowed me to link transactions to a credit card rather than a checking account then this would not be an issue, because credit cards are protected. However, they have created and promote a product with falsified security that scammers embrace. 

3. And on top of it all, I am still completely appalled by the banking systems lack of protection against fraudulent activity. It seems as if the system is designed to point fingers at every other party involved rather than being a system in place to withhold integrity and safeguard the industry. Bank of America has blamed their inability to " protect '' their customers on federal regulation requiring funds to be made available within one business day. Now that certainly seems to do a huge disservice to customers when there is no safeguard on the other end for fraudulent checks. A cashier 's check is purchased and received with the conception of an added level of security ; as two legitimate organizations vouches for their customers for the safety of the transaction. Now I fully understand there is no safety or assurance in place until the 3 weeks after the transaction, yet funds are made available the next day? There is a misconception that when a check is cleared, it means the funds have been verified and are now available in full. The public does not know there is a chance these funds can be withdraw up to 3 weeks from the initial transaction. It 's ludicrous to believe this is common knowledge, arranged to protect the general public, when in fact, it appears to be designed to do the exact opposite. 

I need this case to be resolved by returning the {$1300.00} to my account, working alongside law enforcement to conduct a full investigation to bring criminal charges against this individual. Rather, I 've been told by Bank of America that they amount in question is so small, they are surprised I even have a detective assigned to the case. Not exactly the attitude you want from the person that is supposed to be investigating the mis-actions taken by their own representative to bring you to this situation to begin with. 

Both the bank and the federal government must also do a better job of creating a safe environment for their customers. 

Should you have any additional questions, please do not hesitate to contact me. I can supply additional information, if needed. Thank you in advance for your help in this matter.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation