Consumer complaint received 2025-12-16 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: KEYCORP
State: OH

Complaint narrative:
I was contacted by an individual representing a fraudulent company named XXXX. I performed due dilligence by researching the company prior to processing any transactions in good faith. The scammer 's website was presented as a legit business with secured lock displayed in address bar, fake better business certificate, XXXX agent profiles, and the initial contact referred to indeed as the source locating my personal information. Funds were sent to the fraudulent company, via KeyBank debit card and wire transaction, to purchase and post merchandise for retail companies on the scammer 's site. All monies sent for purchased merchandise was to be credited back once items were posted to site. Initially, items were purchased successfully and funds were credited back, however, when higher amounts were required for merchandise purchase the funds were not credited back. A total of {$8100.00} has been lost due to fraudulent activity. 
Transactions were processed from my KeyBank account, in good faith and credit backed by the US government, as security should any violations occur. I have reported this scam immediately to KeyBank and the proper law enforcements ( FBI, FTC, SEC, XXXX, XXXX, Ohio Attorney General ). The denied disputed transaction amounts processed on the KeyBank account equate to {$4800.00}. A provisional credit, for one transaction only, of {$450.00} was issued during the bank 's investigation. All reports and proof of the fraudulent transasactions were provided to the bank, however, KeyBank has denied the dispute stating the transactions were processsed properly with " no error ''. 
Clearly, the transactions werer not processed properly and resoluted in bad business, violations of Unfair and Deceptive practices and Regulation E.These types of transactions were unauthorized, constituted scam-related activity, and were promptly reported not only to KeyBank but multiple law enforcement regulatory agencies. Despite the extensive documentation and notices, KeyBank failed to provisionally credit the account within the mandatory timeframe and failed to conduct a reasonable investigation as required by federal law. Failure of recongnizing and properly resolving violations that occured with transactions intiating from a KeyBank account, refusal to issue provisional credit, and denial of the fraud claim on the basis that no error occurred is inconsistent with the requirements of the Electronic Funds Transfer Act and Regulation E ( 12 C.F.R. 1005.11 ). 
When a financial institution disregards clear evidence of fraud, ignores law enforcement reports, and retains consumer funds obtained through fraudulent transactions, an adverse inference arises that the institution is knowingly benefiting from or facilitating the fraudulent scheme. Continued retention of these funds, after notice and regulatory reporting, constitutes ratification of the fraudulent transactions exposesing KeyBank to liability for aiding and abetting fraud, conversion, unjust enrichment, and violations of UDAP and Regulation E. 
KeyBank acknowledged receipt of my dispute but failed to issue provisional credits within 10 business days and did not provide access to the disputed funds during its investigation, as required by law.By ultimately dening the claim, stating that no error occurred, without providing a reasonable investigation or substantiated explanation, this determination disregards material evidence, including the fact the recipient company and transactions were reported as part of an active scam. 
KeyBank has not meaningfully addressed evidence in its response or explained how its investigation satisfied Regulation E requirements. When asked to speak with the agent that managed the fraud case I was informed the request could not be fullfilled because the agent is too busy and speaking with me would backup the system. At this time I told the representative I had been an previous employee of KeyBank for 8 years, reviewed clients ' accounts and reached out to fraud agents directly for further assistance when clients are requesting specific details that are notated on fraud cases. 
Additionally, I requested that this mattetr is escalated to a supervisor as well. I was placed on hold multiple times only to be informed that a supervisor was not available to assist me due to assisting other clients and I would need to receive a callback within 2 business days. The timeframe has passed and I have not received a callaback from a supervisor. 
Prior to requesting to speak with the fraud agent responsible for this case and supervisor, I requested provisional credits while the investigation was being conducted and was informed the credits could not be issued. 
By failing to provisionally credit the account and denying the claim without a reasonable investigation, KeyBank has violated procedural requirements. Continued retention of funds after notice of unauthorized activity constitutes unjust enrichment, unfair and deceptive practices and raises serious concerns regarding compliance with Federal Consumer Protection Law.

Company response to consumer: Closed with explanation