Consumer complaint received 2022-06-24 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Money was taken from your account on the wrong day or for the wrong amount
Company: JPMORGAN CHASE & CO.
State: NY

Complaint narrative:
Re : Claim Number XXXX I am writing regarding a fraud/scam about two transactions worth of {$500.00} and {$300.00} through XXXX which occurred on XXXX. The narrative below explains the series of events and why I feel the harm could have been prevented or resolved in time. 

I posted an add on XXXX XXXX and I started getting electronic texts from the buyer through XXXX XXXX app about the item I was trying to sell. The buyer showed interest in buying the item and asked me for my address, XXXX number and email id. She claimed she made a payment of {$340.00} through XXXX. I also got an email from XXXX stating the same. I was informed to contact the buyer to make another {$500.00} payment to me so that XXXX can release the original payment. She agreed to send me {$500.00} and asked me to refund that {$500.00} back to her. I resisted and asked I could not understand why I was getting asked to refund the money. I also informed her I can not share the screenshots from my chase bank mobile app. I immediately contacted XXXX XXXX customer support ( at XXXX PM, before the transaction occurred ) for inquiring about the legitimacy of this request ( proof attached here ). 
Shortly after, I got another email stating the total amount of {$890.00} ( XXXX original payment+XXXXXXXX business account bonus+XXXX security fee ) and followed by another email stating {$1100.00} would be released in 30 minutes once I refund the {$500.00} back and pay for the certificate fee of {$300.00}. I replied to the email asking what {$300.00} was for and If I would get the refund. The buyer tried calling me multiple times ( chat history attached here ) and a few minutes later, I received a notification from the chase bank mobile app ( at XXXX PM ) stating the {$300.00} was transferred to a person named XXXX ( screenshot attached here ). I immediately checked my chase bank mobile app and there was another fund transfer of {$500.00} already under pending status. Although, I opened the chase bank mobile app multiple times during that day and I also opened XXXX Pay option on that app but I do not recollect any memory of myself completing the transaction. I called chase bank customer support immediately ( call log history attached here ) and asked to cancel the pending transactions. I was informed that the transaction could not be cancelled even when called within minutes. However, I was reassured that the claims department would be able to take care of it. I also filed a claim for these two transactions. I blocked my chase bank online access immediately after the incident. I then kept getting emails and calls from the fraudulent person multiple times later in the day but I did not entertain. I also filed a police report for harassment through electronic communication ( report attached here ). 

How the harm could have been prevented/resolved? 

I called chase bank customer support immediately within minutes of these transactions and I was informed they could not reverse it but I was reassured that the claims department would be able to take care of it. When I contacted customer claims department of Chase bank, I was asked if I initiated the transaction. I informed that I opened the XXXX through Chase bank mobile app to see who the recipient was, I entered the details but I do not recollect how the transaction was complete. The claims department did not note my claim completely and the call was disconnected unfortunately. However, the claim was submitted incomplete. I called them again and the claim was completed for a fraud/almost scammed. On XX/XX/XXXX, I received a denial letter stating the claim was denied as per agreement. I called the claims department and explained there was no agreement that the letter was referring to. I was reassured that the investigation team was taking it as a Fraud and I would be getting my funds back within 10 business days ( by XX/XX/XXXX ). However, I receive another denial letter on XX/XX/XXXX from Chase bank stating the transaction was authorized by me. I appealed the decision and uploaded all the supporting documents to support my case. The documents were accepted on XX/XX/XXXX but the case was denied again. I spoke with the claims department on XX/XX/XXXX and I expressed my legal right to claim refunds of the payments not approved by me under electronic funds transfer act ( XXXX XXXX ). I also referred to the Consumer Financial Protection Bureau directive, stating the law applies " if a third party fraudulently induces a consumer into sharing account access information. '' This is when someone tricks you into making a payment. So the whole idea that treachery is involved should mean consumers are protected by XXXX XXXX I was informed by claims department that since the investigation team could not prove those as unauthorized transactions, XXXX XXXX could not be applied since it was a scam. However, shortly after when I spoke with the claims escalation team, I was informed that the bank tried to contact the partner bank on XX/XX/XXXX to recover the funds based on XXXX  XXXX considering a scam, but the funds were withdrawn by the receiver and the partner bank denied the recovery of those funds. 

I also contacted the buyer again to send me the money in a good faith, however, the buyer confirmed she did not receive the money and claimed her money was stuck in the bank as well. In addition, I contacted XXXX and reported this fraudulent account, however I was informed that the Chase bank is one of the partner banks and should be the XXXX responsible for one-time courtesy credit in case they are unable to recover the funds ( in contrary to what I was told by Chase bank to contact the XXXX to give one-time courtesy refunds when I called them on XXXX ). 

I have attached proof of all the email and chat conversations with the XXXX and the buyer respectively, the call log history with Chase claims department and customer support. 

I performed all the steps to report these fraudulent transactions including a police report, contacting XXXX and chase bank in a time-sensitive manner. I still had to suffer the harm and I believe it could have been prevented or resolved. 

The following are the reasons I believe Chase bank should have done a better job in preventing or resolving the harm. 
1. Insufficient guidance- I was not guided sufficiently on next steps to deal with this fraud/scam. For an instance, I was asked to contact XXXX immediately after the incident while XXXX pay clearly suggested to contact Chase bank since the payment was initiated by XXXX feature in Chase mobile bank app. I was informed about the difference between fraud and scam on XX/XX/XXXX ( seven days later ) when I asked how it would change the way claim department would deal with it. The unnecessary delay of two weeks in applying XXXX XXXX and the consideration of fraud vs scam lead to a lack of recovery from the partner bank since it was too late ( as the money was withdrawn already from the account ) while the result could have been different had the chase bank approached the partner bank on the same day of the incident report. 
2. Misinformation- The denial letter indicated that the claim was denied as discussed while there was no discussion of why claim would be denied. 
3. False reassurance- I was reassured falsely that I will get the payment based on Fraud consideration instead of giving the clear direction of next steps. 

Please review my request and consider it for refund of the money I lost. 

Thank you.

Company response to consumer: Closed with explanation