Consumer complaint received 2024-04-29 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Other transaction problem — 
Company: NAVY FEDERAL CREDIT UNION
State: TN

Complaint narrative:
On XX/XX/XXXX I received a call from a spoofed Navy Federal number ( The number they called from matched the XXXX on my card and had a Navy Fed caller ID ). The person on the other line claimed to work for Navy Federal and told me that I had potential fraud activity on my account, and that in order to resolve it they would need to transfer my money out of my account into an uncompromised account. The scammer then induced me into sharing the security code sent to my phone so that they could transfer the money into the uncompromised account. This transfer ended up being fraudulent as I never was given access to this uncompromised account and all the money was drained from my account. The scammer then made two unauthorized transfers : {$340.00} from my checking and {$1900.00} from my savings account, both going to an account owned by someone named XXXX XXXX ( Account Number ending in XXXX ). There was also an Iphone that logged into my account that day and has not signed on since XXXX. I believe this to be the scammers phone. 

The next morning ( XX/XX/XXXX ) after realizing the transfer was fraudulent, I called Navy Federals service line to report that I had been scammed. The lady on the phone told me that we needed to fix this and then transferred me to the fraud specialists. We then discussed the events I described above about the scam. They couldnt promise that I could get my money back, as they had to investigate if I was at fault. Navy Fed then opened an investigation. I also informed the local police department as to what happened, but they did not take a report because nothing physical was stolen. Navy Federal then created a new account for me since my pervious had been compromised. On XX/XX/XXXX Navy Fed made an adjustment to the account for the amount that was stolen in the unauthorized transfer, {$2300.00}. 

On XX/XX/XXXX, I received a notification in my Navy Federal app telling that my claim of debit card fraud for the amount of {$2300.00} had been resolved and that based on their investigation no error had occurred. Navy Fed then made an adjustment to my account and withdrew the {$2300.00}. On XX/XX/XXXX I filed an appeal to their decision as this was not a case of debit card fraud but an unauthorized transaction as described by the Electronic Funds Transfer Act and Regulation E. 

On XX/XX/XXXX I also received a plethora of notifications alerting me to my card being declined. This was the debit card connected to the compromised account as Navy Fed did not close the account as a way to catch the scammer. On the morning of XX/XX/XXXX I once again called the Navy Federal Service line. 

I believe that I have been a victim of a scam/unauthorized transaction. On the Consumer Financial Protection Bureaus website they have an FAQ about the Electronic Fund Transfers Act and Regulation E. In this FAQ it is stated that As discussed in Electronic Fund Transfers Error Resolution : Unauthorized Fund Transfers Question XXXX, Regulation E defines an unauthorized EFT as an EFT 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. 12 CFR 1005.2 ( m ). Comment 1005.2 ( m ) -3 explains further that an unauthorized EFT includes a transfer initiated by a person who obtained the access device from the consumer through fraud or robbery. Similarly, when a consumer is fraudulently induced into sharing account access information with a third party, and a third party uses that information to make an EFT from the consumers account, the transfer is an unauthorized EFT under Regulation E.. 

I believe that the final sentence talking about consumers being fraudulently induced into sharing account access information with a third party applies to my situation, as I had been tricked by someone impersonating a Navy Federal employee in order to gain access to my account and complete an unauthorized transaction.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation