Consumer complaint received 2021-12-27 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: WELLS FARGO & COMPANY
State: AZ

Complaint narrative:
On XX/XX/XXXX during my trip to XXXX XXXX, XXXX my phone was stolen at XXXX XXXX. The person who stole my phone was able to turn off Face ID and log into all my banking applications, download my cards to XXXX XXXX and then made several transactions from all my personal and business accounts through the Wells Fargo banking app, XXXX transfer from XXXX XXXX banking application and several transactions using my XXXX XXXX credit card stored on my phone in XXXX XXXX. 

On XX/XX/XXXX at approximately XXXX, I first notified Wells Fargo Customer Service of the identity theft and notified them of unauthorized transactions that I was able to see through my online account. The agent went through every single one of my accounts and assured me that all my accounts were closed and no further transactions can be made through any of my business and personal checking, savings, line of credits and credit cards. On XX/XX/XXXX after noticing that there were new fraudulent transactions showing on Wells Fargo banking site, I called Wells Fargo again. At that point I was informed that the previous agent did not have access to any of my Business accounts and the new agent advised me to call again in the morning to get help with my business accounts. I went through every single fraudulent transactions again with that agent that had occurred through my personal accounts and made it clear to the agent that ALL transactions that occurred from my accounts between XX/XX/XXXX - XX/XX/XXXX were fraudulent. I was assured again that that was taken care of. 

On XX/XX/XXXX at approximately XXXX, I called Wells Fargo Business Fraud department XXXX After speaking with the agent there and going through all the details and every single transaction again, I was assured that they took notes and that the matter will be resolved as soon as possible. 

Following these conversations, I received a letter from Wells Fargo stating that they have determined that since I was in possession of my physical cards, these transactions were made by me and the have found no evidence of fraud. I also received another letter stating that since these transactions occurred using my secure username and password, they have determined that these transactions were not fraud even though my complaint clearly stated that my phone was stolen and the thief used my phone to log into my banking applications therefore those transactions would have been using my secure login and password. I called Wells Fargo again and since then I have called Wells Fargo over and over again and have even visited the branch twice once in XXXX and once in XXXX and have reached a dead end as Wells Fargo continues to deny these charges and have created great distress for me. 

During my visit to Wells Fargo branch, I provided the following details to the banker to get this issue resolved quickly. As evident from the information below, Wells Fargo picked and chose the transactions they wanted to believe are fraudulent even though they all occurred using the same login and password and on the same dates. They refunded some claims but denied others. 

XXXX ) XXXX XXXX of XXXX XXXX : - the closing statement for XX/XX/XXXX shows a {$0.00} balance on business line of credit. 
- the closing statement for XX/XX/XXXX shows a {$90.00} balance which was simply an overdraft protection fee. 
- The closing statement of XX/XX/XXXX shows a {$0.00} balance - The business line of credit had no charges on it until XX/XX/XXXX which is the day my phone was stolen and shows a pattern of lack of use of line of credit that should have alerted Wells Fargo of fraud. 
Fraud Transfers : - XX/XX/XXXX Ref XXXX Amount : {$2000.00}. Transferred online to Business Checking XXXX REf XXXX - XX/XX/XXXX Ref XXXX Amount : {$1000.00}. Transferred through online banking to XXXX Checking XXXX Ref XXXX. 
- XX/XX/XXXX Ref XXXX Amount : {$2000.00}. Transferred through online banking to Business Choice Checking XXXX Ref XXXX. 

Unresolved XXXX Transactions : - XX/XX/XXXX XXXX XXXX XXXX : {$2000.00}. Transferred through online banking to XXXXXXXX XXXX XXXX XXXX Ref XXXX. This transaction would have been resolved if Wells Fargo refunded the {$500.00} XXXX fraud transfer that had occurred from XXXX XXXX XXXX  account XXXX. Although I had informed several wells fargo agents about the XXXX transfer, during my appointment with Wells Fargo banker in XXXX, I was informed that a claim was never started by Wells Fargo for the {$500.00} XXXX transfer and they started a claim that day. On XX/XX/XXXX I received a letter from Wells Fargo Claims Department with the same ridiculous reason for denial saying that " Our research shows that it was requested through a secure online banking session using your username and password. After reviewing all the information available to use regarding the transactions you are disputing, we have determined that the transaction was made by you, or someone who had your authorization ''. I have over and over again informed Wells Fargo that the person was using my phone and banking app to make those transactions and again Wells Fargo came back acting like they have not read the original complaint. It would have been more believable that Wells Fargo had actually done the research if XXXX XXXX hadn't already refunded me back my {$2500.00} XXXX transfer that had occurred on the same day using XXXX XXXX banking application that was on my phone and they did find that transactions fraudulent. Furthermore, Wells Fargo themselves credited my account for {$250.00} transaction that occurred from the same account ending in XXXX on XX/XX/XXXX. How did Wells Fargo decide that the {$250.00} transaction at XXXX that occurred from the same account and the line of credit transfers that occurred into the same account were fraudulent but the {$500.00} XXXX transfer that happened on XX/XX/XXXX that they constantly ignored to file a claim for wasn't fraudulent? 

Here are other fraud transfers that were performed on the same day using the same Wells Fargo banking app and by downloading cards from Wells Fargo app to my Apple Wallet : XXXX ) Business Checking ( Vets and Adventures ) XXXX : - Previous 6 months bank statements show that this account was rarely used. 
- Beginning balance in this account XX/XX/XXXX was {$16.00}. 
Fraud Transfers : - Deposit of {$2000.00} from XXXX XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX - XXXX/XXXX/XXXX - " Purchase authorized on XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX '' Amount : {$270.00} - On XX/XX/XXXX - Wells Fargo XXXX XXXX account {$270.00} making the new account balance {$2000.00}. However, Wells Fargo did not return the {$2000.00} that was transferred from the line of credit back to business line of credit from this account. 
- On XX/XX/XXXX after lack of action from Wells Fargo, I decided to transfer {$2000.00} back to line of credit. 
- No further action is needed for this account at this point. 

XXXX ) Personal Everyday Checking XXXX : - Previous months statements show that this account was only used for certain recurring payments such as State of XXXX, XXXX XXXX, IRS tax payment and deposit from Bank XXXX XXXX. Showing again a patter of lack of use for any transactions. 
- Beginning balance on XX/XX/XXXX : {$2300.00} Fraud Transfers : - XX/XX/XXXX Deposit of {$1000.00} from Business Line of Credit Ref XXXX. 
- XX/XX/XXXX Online Transfer to XXXX XXXX Checking XXXX Ref XXXX for {$1000.00} - XX/XX/XXXX Online Transfer to XXXX XXXX Checking XXXX Ref XXXX for {$1000.00} - XX/XX/XXXX Online Transfer to XXXX XXXX Checking XXXX Ref XXXX for {$380.00}. 

- On XX/XX/XXXX Wells Fargo returned the XXXX transfers that had been made to account XXXX back to this account ( {$2300.00} ) however reversed it again on XX/XX/XXXX for no apparent reason. However, I personally transferred those back into this account again from XXXX and therefore no further action is needed for this account. 

XXXX ) XXXX XXXX XXXX  XXXX : - Previous statement again show lack of significant activity leading up to XX/XX/XXXX eent. The XXXX recurring transactions occurring from this account prior to XX/XX/XXXX were payments to University XXXX and XXXX of XXXX. 
- Starting Balance XX/XX/XXXX : {$0.00} Fraud Transfers : o XX/XX/XXXX Deposit of {$2000.00} from Business Line of Credit Ref XXXX o XX/XX/XXXX Online transfer from Everyday Checking XXXX Ref XXXX Amount : {$1000.00} o XX/XX/XXXX Online transfer from Everyday Checking XXXX Ref XXXX Amount : {$1000.00} o XX/XX/XXXX Online transfer from Everyday Checking XXXX Ref XXXX Amount : {$380.00} o XX/XX/XXXX XXXX to on XX/XX/XXXX Ref # XXXX Amount : {$500.00} o XX/XX/XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : {$250.00} o {$4300.00} Total Fraudulently transferred into the account on XX/XX/XXXX. 

- On XX/XX/XXXX, Wells Fargo Provisional Credit returned {$250.00} that was fraud purchase at XXXX pharmacy however, they did not reverse the XXXX transfer that was fraud. As mentioned above after restarting that claim in XXXX since Wells Fargo " didn't find any record of that claim '' on XX/XX/XXXX, they denied that claim stating it was done using my secure username and password. 
- On XX/XX/XXXX, Wells Fargo transferred {$2300.00} back to Everyday Checking XXXX however, reversed the transfer again on XX/XX/XXXX. 
- On XX/XX/XXXX after lack of action from Wells Fargo, I personal transferred {$2300.00} to Everyday Checking Account XXXX as mentioned above. 

- The fact is that Wells Fargo admitted to fraud occurring from this account when they transferred {$2300.00} to XXXX Checking XXXX back which was done using the same online banking application that had " secure username and password '' and reversed {$250.00} XXXX transaction that was done using apple wallet when they were done using the same username and password. But they denied the {$500.00} XXXX transfer that occurred on the same date using the exact same banking application. This shows that Wells Fargo has no desire to protect the consumer and they are randomly deciding what they believe to be fraud or not. If the {$2300.00} were fraudulently transferred on XX/XX/XXXX using the same online access and the XXXX transfer occurred on the exact same day using the exact same online access, why was XXXX fraud and the other wasn't when Wells Fargo was informed over and over again that ALL transactions that occurred between XX/XX/XXXX and XX/XX/XXXX were Fraudulent. This shows clear violation of the consumer protection law by Wells Fargo. 

- Unresolved Fraud Transactions : o XX/XX/XXXX XXXX to on XX/XX/XXXX Ref # XXXX Amount : {$500.00} If Wells Fargo had actually done their job right and reversed the XXXX transfer back in XX/XX/XXXX when I had filed the claims multiple times, the refund would have provided sufficient funds to Account XXXX to then pay {$2000.00} back to the Business Line of Credit. Instead, Wells Fargo continued to make it difficult to resolve this issue and continued to charge me late fees and interest on my line of credit. It has been 5 months and this still has not been resolved. 

XXXX ) XXXX XXXX XXXX XXXX : - Previous statements show that prior to XX/XX/XXXX, the XXXX XXXX XXXX was only used every month for XXXX recurring charges : XXXX XXXX and XXXX XXXX XXXX Payment showing again a pattern of lack of use of the credit car until XX/XX/XXXX fraud activity. 

Fraud Transfers : o XX/XX/XXXX Breakfast & Burgers # XXXX Ref XXXX Amount : {$18.00} o XX/XX/XXXX XXXX Cosmopolitan of L XXXX XXXX XXXX XXXX XXXX : {$530.00} o XX/XX/XXXX XXXX XXXX XXXX L XXXX XXXX XXXX XXXX XXXX XXXX {$530.00} - After calling Wells Fargo on XX/XX/XXXX XXXX XXXX were reversed however, both {$530.00} charges at Cosmopolitan were added back to my credit card by Wells Fargo on XX/XX/XXXX claiming that since I was in possession of my credit card the fraud could not have occurred. While the Fraudulent transactions occurred in XXXX XXXX, I had informed the agent that my card was actually at my house in Arizona in my safe this whole time and it was my phone that was stolen. I had rechecked when I returned home and made sure that this was true. In XX/XX/XXXX during my visit with the Wells fargo banker I was informed by XXXX at XXXX XXXX XXXX department that those transactions were done using a chip card. Baffled by that claim I called XXXX XXXX and Casino Security that informed me that the transaction did occur from the Casino floor ATM machine but that they had no video data of who made those transactions and that Wells Fargo has not made any attempts to investigate those transactions either. After doing my research online I found the following articles online that prove the statement that since a chip was used at an ATM at XXXX XXXX these charges have to be authorized as completely wrong. According to XXXX XXXX news XXXX were able to make transactions using counterfeit magnetic stripe cards that were generated with data collected from XXXX chip cards because those card issuers did not catch the fact that the cards were using iCVV instead of XXXX. Similarly, another article states Meanwhile, a report from a security first noted that cybercriminals found a workaround tactic that allowed them to make purchases using magnetic stripe cards with data that was intended for XXXX chips ( XXXX XXXX XXXX ). The article continues with stating that Unfortunately, these findings point to a disturbing reality : stopping card cloning is a constant game of cat-and-mouse in which its nearly impossible to get fraudsters to stop cloning cards. 

Both articles mentioned above were from XX/XX/XXXX and XX/XX/XXXX and if such technology was present at the time these articles were written, one can only imagine how much worse it has gotten since then. Instead of investigating the lack of security that can make such fraudulent activity happen, Wells Fargo is simply denying that the charges were fraudulent and risking not just myself but all their customer from this to happen again as they are unaware of the breach that allowed this to happen. 

As I have informed Wells Fargo on multiple occasions since XX/XX/XXXX, my XXXX XXXX was stolen around XXXX on Friday XX/XX/XXXX at XXXX  XXXX XXXX XXXX XXXX XXXX My XXXX contained all my banking applications and had my cards stored in apple wallet. I was not in possession of any of my Wells Fargo cards and only had my XXXX XXXX with me at that trip. The perpetrator was able to unlock my XXXX, change my XXXX XXXX password, turn off XXXX XXXX, log into all banking applications and download the remaining cards to XXXX XXXX. A police report was filed with XXXX XXXX XXXX office for this incident. 

According to Federal Trade Commission, under Fair Credit Billing Act, the liability for unauthorized use of credit cards tops out at {$50.00}. If your credit card number is stolen, but not the card, you are not liable for unauthorized use ( https : XXXX ). 

The identity theft was reported to Wells Fargo within XXXX hours of the incident occurring. However, even with it being reported Wells Fargo has continued to hold me liable for the following XXXX fraudulent charges and have also continued to charge me late fees, finance charges and minimum payments on this visa signature card : XXXX. XX/XX/XXXX XXXX XXXX of XXXX XXXX XXXX XXXX Amount : {$530.00} XXXX. XX/XX/XXXX XXXX XXXX of XXXX XXXX XXXX XXXX XXXX : {$530.00} XXXX. XX/XX/XXXX XXXX XXXX : {$39.00} XXXX. XX/XX/XXXX XXXX XXXX XXXX : {$17.00} XXXX. XX/XX/XXXX XXXX XXXX XXXX : {$93.00} XXXX. XX/XX/XXXX XXXX XXXX : {$18.00} XXXX. XX/XX/XXXX XXXX XXXX XXXX : {$28.00} XXXX. XX/XX/XXXX Finance Charge : {$17.00} As evident from the quick reversal of charges and transactions by XXXX XXXX and XXXX XXXX, Wells Fargo does not want to resolve this issue but instead hold me liable for identity theft that is protected under Fair Credit Billing Act. XXXX XXXX agent at Wells Fargo bank along with the branch XXXX are also aware of this atrocious behavior by Wells Fargo Claims department and has informed me that they have both filed their own complaints with the bank as this is a clear violation of my rights simply because Wells Fargo just don't want to take the loss that occurred due to the identity theft.

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