Consumer complaint received 2025-08-13 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem caused by your funds being low — Overdrafts and overdraft fees
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
My Navy Federal Credit Union ( NFCU ) account was frozen after I became the victim of a sophisticated identity theft and account hacking incident. Since the freeze began on [ insert date ], I have submitted three separate security appeals, including my most recent appeal, and have attached a Federal Trade Commission ( FTC ) Identity Theft Affidavit and official FTC Identity Theft Report ( Reference No. XXXX ) to my case file. This report confirms that my personal and financial information was compromised without my knowledge.

The fraud stemmed from unauthorized activity on my account, including a duplicate fraud dispute on my mortgage payment for the same transaction, initiated by the perpetrator. This action resulted in a {$3900.00} credit to my accountfunds that were never legitimately mine. NFCUs systems failed to detect this duplicate and suspicious activity, allowing the fraudulent credit to be processed. I have since obtained detailed Cash App transaction logs proving that the perpetrator filed a duplicate fraud report on the same transfer and rerouted the funds into an account registered under their own name. These logs directly contradict any conclusion that I was responsible for the losses. 

I have also provided NFCU with emails from XXXX XXXX, screenshots of altered profile details, and records showing the transactions were tied to another person. Despite this overwhelming evidence, NFCU continues to hold my account restricted and has withheld my VA XXXX benefits for over three months. This has caused me severe financial harm, including the closure of several credit card and loan accounts.

Per NFCU, I owe them {$3900.00} from the fraudulent mortgage reversal and {$1100.00} in alleged overdraftsbalances that exist solely due to the identity theft. I never actually received or benefited from these funds. Meanwhile, NFCU has also withheld approximately {$2300.00} in pending deposits, including VA benefits, which remain in limbo solely because of the restriction.

I complied with every instruction from NFCU, including filing fraud claims as directed by their representative. Yet, despite meeting all documentation requirements and eliminating any security risks by purchasing a brand-new cellular device and switching to a new internet service provider for secure account access, NFCU has failed to restore my account or release my funds.

Under Regulation E ( Electronic Fund Transfer Act ), NFCU must conduct a prompt and reasonable investigation of unauthorized transactions and correct any errors. Under the Fair Credit Reporting Act ( 15 U.S.C. 1681c-1 & 1681g ), I am entitled to block fraudulent data and have NFCU conduct a reinvestigation. As a XXXX veteran, I am also protected by the Servicemembers Civil Relief Act ( 50 U.S.C. 3901 et seq. ), which provides enhanced safeguards against adverse credit actions stemming from situations beyond my control.

The evidence I have submittedincluding the FTC report, XXXX XXXX transaction logs, and proof of altered account informationshows conclusively that I am the victim of identity theft. The continued withholding of my benefits and funds is unreasonable and violates both my contractual rights as a member and federal consumer protection laws.

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