Consumer complaint received 2025-07-01 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: CAPITAL ONE FINANCIAL CORPORATION
State: OR

Complaint narrative:
CFPB Complaint reasoning : Violations of : Unauthorized electronic fund transfer means an electronic fund transfer from a consumer 's account initiated by a person other than the consumer without actual authority to initiate such transfer, Bad Faith Denial & Security Failures & Violations of : Regulation E 1005.6 ( a ) ( 1 ) : Unauthorized EFTs by non-consumer Regulation E 1005.11 ( m ) : Bad faith denial of valid claims Regulation E 1005.11 ( b ) : Failure to investigate/prove authorization FTC Safeguards Rule : Insecure authentication systems.

Capital One violated 12 CFR 1005.6 ( a ) ( 1 ) by claiming transfers initiated by thieves using a stolen device were 'authorized. ' Under Regulation E, unauthorized means 'initiated by a person other than the consumer without actual authority'exactly what occurred here.

Capital One violated 12 CFR 1005.6 ( a ) ( 1 ) by claiming transfers initiated by thieves using a stolen device were 'authorized. ' Under Regulation E, unauthorized means 'initiated by a person other than the consumer without actual authority'exactly what occurred here. 

-- Initial complaint reasoning : Unauthorized electronic fund transfers totaling {$7500.00} were initiated from my Capital One account by unknown third parties using a compromised/stolen device. I immediately discovered these transactions were not authorized by me and contacted Capital One within the required timeframe under Regulation E. 

Capital One conducted what they claimed was an investigation but denied my dispute claim, stating the transactions were " authorized '' because they originated from a device previously used for legitimate transactions. This determination is factually and legally incorrect. 

The transactions were initiated by thieves who had gained unauthorized access to a device, not by me as the account holder. Under 12 CFR 1005.6 ( a ) ( 1 ), an unauthorized electronic fund transfer is specifically defined as one " initiated by a person other than the consumer without actual authority to initiate such transfer '' - which precisely describes what occurred.

Capital One 's denial appears to be in bad faith, as they : Failed to properly investigate per Regulation E 1005.11 ( b ) Could not prove I authorized these specific transactions Incorrectly conflated device recognition with consumer authorization Violated FTC Safeguards Rule by maintaining inadequate authentication systems other info : I provided all requested documentation and cooperated fully with their process. Despite clear evidence these were unauthorized transfers, Capital One upheld their denial without providing substantive proof of my authorization.

My smartphone was stolen. XXXX  tracking confirms theft. 

During this period, I worked nights/slept days, leaving the device vulnerable. 

2. Fraudulent Transactions ( XXXX XXXX XXXX  ) : Thieves used compromised biometrics ( likely added while I slept ) to access accounts. 

XXXX unauthorized XXXX XXXX transfers ( {$7500.00} total ) to " XXXX '' and " XXXX  XXXX '' : XX/XX/XXXX : 6 transactions ( {$2500.00} ) XX/XX/XXXX : XXXX transactions ( {$3100.00} ) XX/XX/XXXX : XXXX transactions ( {$1800.00} ) XXXX. XXXX & First Dispute ( XX/XX/2025 ) : Reviewed statement and identified fraud. 

XXXX. Bank Notification ( XX/XX/2025 ) : Called within 48 hours to dispute, providing : Device theft evidence Explanation of biometric compromise Demand for investigation under Regulation E 1005.6 ( a ) ( 1 ) ( unauthorized transfers ) 5. Bank 's Contradictory Actions : XX/XX/2025 : Refunded {$14000.00} for identical fraud ( same recipients/period ) XX/XX/2025 : Denied {$7500.00} dispute, claiming " account activity supports valid charges '' with no new evidence

Company response to consumer: Closed with explanation