Consumer complaint received 2025-06-20 00:00:00
Product: Checking or savings account — Other banking product or service
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: WELLS FARGO & COMPANY
State: TX

Complaint narrative:
I am submitting this complaint regarding Wells Fargos improper denial of my dispute over an unauthorized debit card transaction. I was the victim of a social engineering scam where a criminal impersonated XXXX support via direct message, deceiving me into providing my debit card information under the false belief that I was verifying it to receive funds from my first XXXX sale. Subsequently, my card was used to make a transaction with XXXX for {$230.00} on XX/XX/XXXX, which Wells Fargo misclassified as a person-to-person transfer service. 

While I did provide my card information and accepted the Wells Fargo authorization prompt, this consent was obtained through fraudulent deception and therefore should still be considered an unauthorized transaction. Regulation XXXX under the XXXX XXXX Transfer Act ( XXXX ) defines an unauthorized transaction as XXXX initiated by a person other than the consumer and from which the consumer receives no benefit. Because my consent was induced by fraud and I was tricked into making a cryptocurrency purchase, this transaction meets the definition of fraud and unauthorized use. 
Neither I nor any Wells Fargo representatives I consulted with were familiar with XXXX. The name XXXX was completely unknown to me, and Wells Fargos authorization message did not clarify its nature. I was misled by the scammer posing as XXXX support into believing this transaction was related to XXXX and necessary to receive payment from my sale. Given this, I had no reasonable basis to question or doubt the legitimacy of the transaction. 

XXXX is not a person-to-person transfer service. It is a regulated XXXX merchant that facilitates cryptocurrency purchases via debit and credit card transactions. I have direct confirmation from XXXX customer service that my debit card was used to purchase cryptocurrency, not to send money through a person-to-person transfer. Additionally, Wells Fargos own authorization system referred to the transaction as a purchase, as evidenced by the text message I received asking, Making a purchase from XXXX? 

Despite this clear evidence, Wells Fargo denied my dispute, claiming they had no dispute rights with merchants used for person-to-person transfers. Wells Fargo failed to contact XXXX or perform any reasonable investigation to verify the nature of the transaction before issuing this denial. This failure violates the Electronic Fund Transfer Act ( EFTA ) and its implementing regulation, Regulation E ( 12 CFR Part 1005 ), which requires financial institutions to conduct a good faith investigation of disputed transactions.

What is most concerning is that after I filed a complaint with the Consumer Financial Protection Bureau, Wells Fargo responded but still failed to conduct the thorough research required to resolve my dispute properly. They did not verify the true nature of the transaction with XXXX and ignored the protections provided under Regulation E. Regulation E defines an unauthorized transaction as one initiated by someone other than the consumer and from which the consumer receives no benefit even if the consumer was deceived into providing information. Wells Fargos failure to apply this standard or perform a proper investigation reflects a serious lapse in consumer protection. 

I have been a loyal Wells Fargo customer for XXXX years and have never experienced any issues until now. My mother and father have been loyal customers of Wells Fargo since 2003 and my brother and sister have been loyal customers of Wells Fargo for over 10 years. We are all incredibly disappointed by how this situation has been handled, and are deeply considering moving all of our accounts and business away from Wells Fargo to another institution that prioritizes customer protection and service. 
I respectfully request that Wells Fargo reopen my dispute, conduct a proper investigation including contacting XXXX, correctly classify the transaction as a merchant purchase eligible for dispute rights, apply Regulation E protections, and refund the unauthorized amount of {$230.00} to my account. I also request documentation of the steps Wells Fargo took in their investigation.

I have supporting evidence available, including written confirmation from XXXX that my card was used to purchase cryptocurrency and the Wells Fargo authorization message confirming it was treated as a purchase. 

Thank you for your attention to this matter. I look forward to a prompt and fair resolution. 

Sincerely, XXXX XXXX

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