Consumer complaint received 2024-04-29 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: WELLS FARGO & COMPANY
State: VA

Complaint narrative:
Between XX/XX/XXXX and XX/XX/2024, we were subjected to a distressing series of fraud and identity theft incidents involving our Wells Fargo accounts. These incidents led to unauthorized transactions and the issuance of a duplicate debit card, which we did not receive, resulting in a significant financial loss of {$10000.00}. Despite our prompt reporting of the fraud on the day of discovery, in accordance with Regulation E, Wells Fargo failed to secure our account appropriately. This failure included the negligent issuance of a duplicate debit card and allowing further unauthorized transactions to proceed, contrary to the stipulations for timely action on fraud alerts outlined in 12 CFR 205.6.

Wells Fargo erroneously concluded that we authorized these transactions and inappropriately closed our claims without conducting a thorough investigation. They should have informed us about the issuance of the duplicate card ( outside of an email ), which we discovered on our own on XX/XX/XXXX while collating evidence for the XXXX XXXX investigation. Over 19 days, despite numerous inquiries regarding unusual account activities, Wells Fargo neglected to disclose critical information about the duplicate card ; it is evident that the duplicate card we did not order, authorize, receive, or authorize its use was used for fraudulent purchases. 

Our long-standing relationship with Wells Fargo has been severely undermined by their inadequate response and mismanagement of our fraud claims. The fraudulent activities began with likely card skimming, leading to unauthorized online transactions and phishing attempts that compromised our debit card PIN. This was followed by unauthorized tele-transfers, a credit card advance, and increases to our daily transaction limits, all without our consent and outside our usual pattern of account activity. The trust we once had in Wells Fargo has been shattered by their negligence, and we now look to the CFPB for assistance and restitution. 

The unauthorized activities included substantial ATM withdrawals totaling {$2000.00} and large unauthorized purchases at XXXX XXXX, where the XXXX Police Department confirmed the transactions were conducted by individuals other than ourselves. Additionally, XXXX XXXX purchases at XXXX XXXX, made by three unrecognized individuals using the fraudulently issued duplicate debit card, further complicate the case. 

Most distressingly, the duplicate debit card was physically stolen from our residence and fraudulently signed for ( when we were not home, corroborated by witnesses and GPS location via XXXX ), indicating a severe breach involving physical theft and identity fraud. The series of unauthorized activities and Wells Fargo 's failure to properly investigate or disclose the issuance of the duplicate card represent clear violations of Regulation XXXX, expressly : Timely Reporting : We reported the fraud immediately upon discovery ( within two days ), well within the timeframe required by Regulation E ( 12 CFR 205.6 ( b ) ), which should limit our liability to no more than {$50.00} for transactions made with a fraudulently duplicated card not in our possession. Despite this, when we cited these regulatory protections, the Wells Fargo claims specialist responded dismissively and rudely, inaccurately insisting that these legal protections did not apply to our situation.

Failure to Act on Fraud Notification : Contrary to Regulation E 's requirement for prompt action to prevent further fraud following notification ( 12 CFR 205.6 ( b ) ), Wells Fargo allowed continued unauthorized transactions.

Inadequate Investigation and Information Disclosure : Wells Fargo 's failure to investigate the issuance of a duplicate card or the circumstances surrounding the fraudulent transactions breaches the requirement for transparency and thorough investigation under Regulation E ( 12 CFR 205.11 ).

Erroneous Claim Closure : The premature closure of our fraud claims without proper resolution or adequate justification violates the procedural requirements for handling disputes under Regulation E ( 12 CFR 205.11 ).

Based on my knowledge, training, and experience as a former Financial Crimes Detective, there is exceptional probable cause that we are the victims of a coordinated scam. We urgently request the CFPB to investigate Wells Fargo 's severe breaches of Regulation E and assist in obtaining restitution for our financial damages. The XXXX Police Department is currently investigating our case, highlighting the severity and complexity of the fraud perpetrated against us. The CFPB 's expertise and commitment to consumer protection will help us in this challenging situation. We are a single XXXX-income family of five, and this ordeal has seriously impacted our finances, work, and emotional well-being.

The attached attachments to this submission include a full report and 14 Enclosures
corroborating the fraud, the phone calls, the fraudulent tele-transfer , the delivery of the fraudulent duplicate card, and evidence that we were not home at the time of the card delivery.

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 monetary relief