Consumer complaint received 2024-10-18 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: NAVY FEDERAL CREDIT UNION
State: VA

Complaint narrative:
On the morning of XX/XX/year>, while at work, I checked my bank accounts on the Navy Federal Credit Union ( NFCU ) mobile banking app on my phone. I immediately noticed a fraudulent internal transfer of {$5000.00} made just one day earlier on XX/XX/year>, to a " XXXX XXXX XXXX XXXX. '' I do not know this person, and I did not authorize this transfer. I immediately called NFCU to report this as fraud/theft. While on the phone with NFCU, I discovered a second fraudulent transfer ; an ACH transfer of {$5000.00} also made the day earlier ( XX/XX/scrub>XXXX  ) to a " XXXX XXXX. '' I do not know this person, and I did not authorize this transfer. The total money stolen from me was {$10000.00} dollars. Alarmingly, NFCU failed to notify me of either of the fraudulent transfers. I have 4 total accounts with NFCU ; two checking accounts and 2 savings accounts. My mother was a joint owner of two of my accounts due to her setting them up for me when I was XXXX/a XXXX. The account that the fraud/theft occurred in was a checking account that my mother was a joint owner on. At NFCU 's direction, I closed the 4 original accounts and opened 4 new accounts. I also submitted a request to remove my mother as joint owner of my accounts, at NFCUs direction. NFCU told me that because they suspected that the breach came from my Mother 's side, that I could not file a fraud claim ( this is incorrect according to different NFCU representatives ). At no point was I informed that removing my mother as joint owner would remove any access to the filed claim or ability to advocate for myself as a victim of financial theft. NFCU representatives have consistently provided incomplete, inconsistent, or outright incorrect information to regarding the claim filing process and what information I can or can't have access to. NFCU also failed to notify me, the account owner, that the fraud claim had been denied. NFCU 's recorded phone calls will substantiate my statement. The transaction history of both my and my Mother 's accounts clearly indicate that these transfers were fraudulent. The only other person with access to my Mother 's home computer, is my father, a XXXX  year NFCU customer and veteran himself. Neither of my parents initiated, approved of, or participated in the fraudulent transfers or theft from my checking account. No other party has access to the home computer. 

The fact that a scammer understands the Navy Federal security system so well that they were able to 1 ) access my account remotely, 2 ) withdraw $ XXXX from me without me being notified of either transaction, and 3 ) were able to spoof my mother 's device and/or IP address indicates that this is a very sophisticated scam that NFCU has no protocols to detect, mitigate, and adjudicate. This suggests NFCU 's complicity with fraud within their own system. It is an egregious failure on NFCUs part to deny me my ability to file a claim on my own behalf, and further, to blame the victim/my mother for their own security/policy/practice failures.

Half of the stolen funds ( {$5000.00} ) were transferred to another account within NFCU. That account is either a criminal or a false account that NFCU did not identify as fraudulent ( and is still currently active to the best of my knowledge ). I have serious concerns that NFCU 's inaction and ineptitude to address this level of sophistication will result in more members being scammed. NFCU has continued to stonewall any attempt I have made to acquire accurate information regarding financial theft and their fraud claim process. They claim to advocate for and care about veterans, and yet I have been stolen from and they don't seem to care and are unwilling to provide any real assistance. I filed a police report with my local department ( XXXX XXXX, VA ) on XX/XX/year>XXXX  ( control number XXXX ). I also filed a formal complaint on XXXXXX/XX/year> with The Internet Crime Complaint Center ( IC3 ) with the FBI.

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