Consumer complaint received 2025-03-30 00:00:00
Product: Money transfer, virtual currency, or money service — Mobile or digital wallet
Issue: Fraud or scam — 
Company: TD BANK US HOLDING COMPANY
State: NY

Complaint narrative:
I am filing this complaint against TD Bank regarding an unauthorized XXXX transaction that occurred on XX/XX/XXXX at XXXX XXXX in XXXX XXXX XXXX XXXX XXXX NY XXXX A young individual briefly took possession of my phone under false pretenses, claiming he was raising money for his basketball team organized by XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX I said I didn't have any cash, and he asked me to send him the donation via XXXX. I opened my TD Bank app and went to the XXXX platform. I asked him to tell me the email address or phone number associated with XXXX XXXX, but instead he grabbed my phone and said it was " easiest if he entered it himself. '' He then entered what I believed to be the contact information for a charity called XXXXXXXX XXXX so I could send a {$20.00} donation. He had my phone for a total of XXXX seconds while the other young man with him showed me videos of the basketball team on XXXX. 

However, without my knowledge or consent, he had already added himself as a contact, " XXXX XXXX, '' and sent {$1000.00} to a phone number associated with " XXXX XXXX '' using XXXX. I only later discovered that I had been scammed when reviewing my transactions. While I had authorized the payment of {$20.00} to " XXXX XXXX  '', which I later recouped because the phone number wasn't affiliated with a XXXX account, I never authorized the fraudulent transfer of {$1000.00}. 

I immediately reported this unauthorized transaction to XXXX Bank, but they have denied my claim three separate times, despite my submission of substantial evidence proving this was fraud.

TD Bank wrongly claims that the transaction was authorized because I provided access/authorization to a third party. This is a misrepresentation of what actually happened and a misapplication of Regulation E ( 12 CFR 1005.2 ( m ) ), which defines an unauthorized transaction as : An electronic fund transfer from a consumers account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit. * This means that just because the young man momentarily grabbed my phone to enter in the charity 's phone number, it does not mean I authorized a {$1000.00} transfer.

This is why TD Banks Argument is Incorrect : XXXX. Authorization must be for the specific transaction I only authorized a {$20.00} donation to XXXXXXXX XXXX, not a {$1000.00} transfer to XXXX XXXX. The fraudster misused temporary access to my phone to initiate an unauthorized transaction. 
XXXX. Fraudulent use of access is not authorization I was deceived into believing I was donating to a basketball charity. I never intended nor approved a {$1000.00} payment. 
XXXX. Regulation XXXX does not require physical theft for a transfer to be unauthorized A transaction is unauthorized if the consumer " did not knowingly approve the specific transaction '', regardless of whether the device was accessed legally or illegally. 

The fact that my device was used does not mean I authorized the transaction. Regulation XXXX makes it clear that a transfer is only authorized if the consumer furnishes the access device with the intent of making that exact transaction. Since I never authorized the {$1000.00} transfer, it qualifies as an unauthorized transaction. 

XXXX Bank has failed to properly investigate my claim : XXXX. They have repeatedly denied my claim ( XXXX ), despite the fact that I provided TD Bank with a police report documenting the fraud. I also visited the TD Bank branch near the XXXX XXXX in XXXX in person to submit email correspondence with XXXX XXXX, who is actively investigating this case. I had to go in person to make sure these documents were uploaded because when I had " e-faxed '' them, they weren't then uploaded to my claim.

2. Pattern of Fraud Ignored : There have been over 30 cases of this exact type of charity fraud in XXXX XXXX since the summer of XXXX. TD Bank has ignored clear indications that this is part of a larger scam. 
3. Flawed Reasoning for Denial : TD Bank claims that because the transaction came from a device I regularly use, it must have been authorized and that " no error occurred. '' However : - The perpetrator exploited temporary access to my phone to commit fraud. 
- The presence of a familiar device does not equate to authorization of a fraudulent transfer.

- TD Bank failed to recognize the suspicious nature of this transaction, which was far larger than my usual XXXX payments. 
- I closed the account in question and opened a NEW Checking and Savings account because I was afraid of continued fraud.

Under 12 CFR 1005.11, when a customer disputes an unauthorized transaction : - The bank must conduct a reasonable investigation and determine whether the transaction was truly authorized. 
-If the bank can not prove that I authorized the transfer, they must reimburse me.

- A device being recognized does not override my rights. A financial institution can not deny a claim solely because a familiar device was usedTD Bank must assess whether I actually authorized the transfer.

TD Banks repeated denial of my claim ( s ) without a proper investigation violates Regulation E and fails to protect consumers from unauthorized transactions, as required by law. Under Regulation E of the Electronic Fund Transfer Act ( EFTA ), banks must investigate and provide relief for unauthorized electronic transactions. TD Bank has failed in its duty to protect my funds, despite overwhelming evidence proving I did not authorize the {$1000.00} payment to XXXX XXXX.

Company response to consumer: Closed with explanation