Consumer complaint received 2025-08-02 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: NAVY FEDERAL CREDIT UNION
State: NM

Complaint narrative:
On XX/XX/XXXX, at XXXX PM, XXXX unauthorized transactions were made from my Navy Federal account : XXXX for {$1000.00} and another for {$450.00}. I did not authorize either transaction and reported the fraud to Navy federal within hours of it occurring. The funds were withdrawn from my account without my consent, using a stolen phone and virtual card credentials stored in XXXX XXXX. 

I cooperated fully and submitted all relevant information almost immediately. Navy Federal denied my dispute, stating no error has been made, and closed the case. I submitted an appeal with a more detailed timeline, including names and phone numbers of witnesses, text message screenshots where the party responsible ( XXXX XXXX XXXX admits to the theft, and a police report number. I informed Navy Federal that the case has been assigned to a detective and that a warrant is being issued within 30 days. 

Despite this, they did not properly investigate the claim. They instead advised me to contact XXXXXXXX XXXX XXXX, who is linked to XXXX XXXX. I submitted the same evidence to XXXX XXXX but they also denied the dispute, stating no error or fraud identified. When I called XXXX XXXX  on a recorded line ( XX/XX/XXXX, at XXXX XXXX  ), their representative stated they could only provide documentation for XXXX of the XXXX transactions and denied my right to documentation for the second. I was told, incorrectly, that they were not obligated to send it to me. This violates my rights under Regulation XXXX. 

This has caused extreme financial hardship. My checking account was cleared out and not authorized by any means. Navy federal had given me a provisional credit of {$1400.00}, but reversed the funds on XX/XX/XXXX. They reversed the funds just 3 days before rent was due and didnt give me any prior notice. I was not able to pay rent due to this situation. 

To clarify, XXXX reporting both navy federal credit union and XXXXXXXX XXXX XXXX 

Navy Federals Role and Mishandling : Navy Federal is my primary bank and the account from which the funds were withdrawn. 
I reported the fraud immediately and cooperated fully. I provided text evidence, a police report, and witnesses & contact info. 
XXXX XXXX issued a provisional credit of {$1400.00}, then later reversed the funds without notice on XX/XX/XXXX, just days before rent was due. 
They closed my case claiming no error was made, despite the fact that I provided updated evidence during my appeal including confirmation from law enforcement that the case was progressing toward charges. 
They advised me to reach out to Green Dot, who processed the XXXX XXXX transactions. 



Green Dot Banks Role and Mishandling : XXXX XXXX is the financial institution behind XXXX XXXX. The unauthorized payments were routed through them. 
I submitted the same detailed evidence to XXXX XXXX that I gave Navy Federal.

XXXX XXXX denied my claim, stating no error or fraud identified.

When I requested documentation on how they reached this conclusion ( as allowed under Regulation E ), a representative told me they would only send information for one transaction, and refused to provide details on the other violating my rights to dispute resolution transparency. 



I am now at a loss of {$1400.00}. I am requesting : A full refund of the unauthorized amounts A proper investigation and explanation Compliance with federal consumer protection laws I am filing this complaint because I have exhausted all internal dispute resolution options with the bank and have received no fair resolution. 


This is what I sent to both XXXX XXXX and XXXX dot bank. It includes a detailed account of the incident along with responses to XXXX questions they asked. 

Hello, I am writing to formally appeal the recent reversal of funds previously credited to my account regarding the fraud dispute reported on XX/XX/XXXX. I initially submitted detailed evidence as quickly as possible, and I am now attaching additional proof that these transactions were unauthorized. The reversal has caused financial hardship, and I am requesting full reinstatement of the credited amount. 

I am also requesting a thorough re-investigation of my case. The disputed transactions were clearly unauthorized, and I have submitted strong supporting evidence to that effect. Under the Electronic Fund Transfer Act ( Regulation XXXX ), I understand that I am not liable for unauthorized electronic transactions, and I am formally asserting my rights under this protection. I did not authorize this activity, nor was I in any way complicit. If the reversal was made due to merchant dispute, clerical error, or misinterpretation of evidence, I respectfully ask that this be escalated to a supervisor or compliance team for further review. 



XXXX XXXX Evidence Folder : Attachments XXXX XXXX XXXX XXXXXXXX Summary of Events and Timeline : On the evening of XX/XX/XXXX, XXXX XXXX XXXX XXXX individual responsible for the fraud ) was using my phone under the pretense that he had lost his own. 
At XXXXXXXX XXXX a call to ( XXXX ) XXXX was made and canceled. A video taken at that time shows XXXX in possession of my phone, pretending to be on a call. ( XXXX. XXXX ) He asked for space and stepped outside to make another call. I remained inside. Approximately XXXX minutes later, I noticed it was quiet and went to check he was gone. 
I attempted to locate him and, unable to find him, used my XXXX to call my friend XXXX. She attempted to call my phone, which he had taken with him. ( XXXX XXXX & XXXX ) I began receiving transaction notifications on my XXXX. A {$1000.00} transfer attempt was initially rejected. He then successfully transferred {$1000.00} and {$450.00} to his ex-girlfriend, XXXX, using XXXX XXXX on my stolen phone. ( XXXX XXXX & XXXX ) I then messaged XXXX phone which he had claimed was lost and he responded, confirming he was using his own phone the entire time. Our text thread shows him admitting to having my phone and stating he had no choice. ( XXXX XXXX XXXX XXXX ) He broke my phone, which triggered the crash detection feature and automatically called XXXX. The case number for that emergency call is XXXX XXXX XXXX. ( XXXX XXXX ) At that point, I didnt know how to call XXXX from my XXXX, so I went to my neighbors apartment for help. She didnt answer right away, but shortly after came to my door. I explained the situation, and she personally drove me to retrieve my phone using the location pinged from my XXXX. She can confirm that I did not have my phone in my possession during the time these transactions occurred. ( XXXX XXXX - # XXXX ( XXXX ) XXXX ) These transactions were unauthorized. My phone was used without my permission, and then destroyed. I located it through Find My XXXX it was found shattered with a car crash detected alert. 

I immediately called XXXX XXXX XXXX fraud line at XXXX AM ( call log attached ). They credited me the amount of {$1400.00}. ( XXXX XXXX ) Police arrived at approximately XXXX XXXX and filed an official report. Case # XXXX ( officers card attached ). ( XXXX XXXX ) XXXX parole XXXX ( P.O. ) has been notified. She confirmed the phone number he used matches the one on file and also said she can verify if needed. She is prepared to proceed with a violation once charges are officially filed. Her contact info is : [ XXXX Name : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX ) XXXX ] I followed up with the responding XXXX, who confirmed the case has been assigned to a detective and is moving forward. The criminal complaint is being processed, and a warrant is expected within 30 days. 




According to XXXX XXXX  Statutes XXXX, it is a criminal offense to fraudulently use an access devicesuch as a debit card, bank login, or mobile payment platformwithout permission and with intent to defraud. 

Furthermore, XXXX XXXX defines fraud as : The intentional misrepresentation or concealment of a material fact made with knowledge of its falsity and with the intent to deceive or mislead another, causing that person to act to their detriment. 

In this case, the individual : Took my phone without permission under false pretenses Transferred money to himself and a third party without my knowledge or authorization Lied about losing his phone and used both phones to complete the transactions Destroyed the device after use, triggering a police and emergency response Admitted in writing to taking my money and did not deny the theft when confronted Under both New Mexico criminal law and federal consumer protections outlined in the Electronic Fund Transfer Act ( Regulation XXXX ), this activity constitutes fraud and unauthorized use. I acted quickly, reported the matter immediately, and cooperated with law enforcement and Navy Federal at every step. 



XXXX you believe your claim should be honored. 
My claim should be honored because I did not authorize the disputed charges, and I provided prompt, detailed evidence showing the card was used without my consent. The transactions occurred while I was without my phone ( which has my virtual card ), and I have documentation and witnesses supporting this. 

XXXX the card was in your possession at the time the fraud occurred. 
No, my phonewhich contained my virtual cardwas not in my possession during the time the unauthorized charges were made. 

XXXX. Was your card lost or stolen? 
My physical card was not taken, but my virtual card stored in my XXXX XXXX was accessed without my permission when someone else had control of my phone. 

XXXX. What date did the card fall out of your possession? 
The virtual card became compromised on XX/XX/XXXX, when I was separated from my phone and unable to prevent its misuse. 

XXXX. How do you believe your card information was obtained? 
The individual gained access to my virtual card by using my XXXX XXXX while in control of my phone without my permission. 

XXXX. Have you ever allowed anyone to use your card? If so, how do you know this person ( XXXX )? 
No, I have never given anyone permission to use my card, whether virtual or physical. 

XXXX. If you received any merchandise from the merchant, is this merchandise still in your possession? 
No, I did not receive or benefit from any merchandise or services from the disputed transactions. 

XXXX. Did you authorize or participate in the charge ( XXXX ) but there was some type of error? 
No, I did not authorize or participate in these charges. These were entirely unauthorized and fraudulent. 

As soon as theres an update as to an official warrant being issued, I will update you. Until then I kindly ask that you credit me the full amount of {$1400.00} as you did previously ( but have now reversed ) Please confirm receipt of this appeal and advise on the next steps. I am happy to provide any additional documentation or answer further questions as needed. I appreciate your attention to this matter and your support in resolving this serious issue.

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