Consumer complaint received 2026-04-06 00:00:00
Product: Checking or savings account — Checking account
Issue: Problem with a lender or other company charging your account — Transaction was not authorized
Company: CHARLES SCHWAB CORPORATION, THE
State: MI

Complaint narrative:
am formally disputing Charles Schwab Banks response to my complaint ( CFPB Case # XXXX ), as it inaccurately characterizes the fraudulent transaction and fails to adequately address the circumstances of this incident. Schwab asserts that the transaction was authorized because I entered my login credentials and shared authentication codes. This characterization is misleading and incomplete. I did not knowingly or willingly authorize a wire transfer to a third party. I was the victim of a sophisticated impersonation scam in which the fraudster posed as a Charles Schwab representative. My actions were taken under false pretenses, based on the belief that I was communicating with my bank. At no point did I intend to grant access to a fraudster or authorize a wire transfer. The access and subsequent transaction were the direct result of deception. This distinction is critical. A transaction induced through impersonation and fraud should not be treated the same as a legitimately authorized transaction. Additionally, Schwabs response does not sufficiently address its own fraud detection and prevention responsibilities. The transaction involved : A new or compromised login session The rapid initiation of a wire transfer following account access Activity that should reasonably be considered high-risk and atypical Given these factors, it is reasonable to expect that Schwabs internal controls and fraud monitoring systems would have flagged or prevented this transaction. Schwab has not provided any explanation of what safeguards were in place, whether any alerts were triggered, or why the transaction was allowed to proceed without additional verification. Furthermore, the fact that the fraudster successfully impersonated a Schwab representative raises serious concerns about customer protection and communication security. As a customer, I relied on the trust and credibility of the Schwab brand. This type of social engineering attack directly exploits that trust. Schwabs reliance on the claim that I shared authentication information ignores the broader context of how that information was obtainedthrough deception and impersonation. Consumers should not bear full liability when they are manipulated by individuals posing as their financial institution. This incident has caused significant financial harm and has had downstream impacts on my ability to meet financial obligations. Given the above, I respectfully request : XXXX. A reconsideration of XXXX determination that this transaction was authorized XXXX. A full reimbursement of the unrecovered funds XXXX. A detailed explanation of XXXX fraud detection protocols and why they failed in this instance XXXX. Clarification on how Schwab protects customers from impersonation-based scams I believe this matter warrants further review, as the current response does not adequately reflect the realities of fraud or the responsibilities of financial institutions to protect their customers. Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation