Consumer complaint received 2024-11-11 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: Credit Karma, LLC
State: MS

Complaint narrative:
Subject : Formal Complaint Against Credit Karma for Account Security Breach and Mismanagement Dear Consumer Financial Protection Bureau, I am filing a formal complaint against Credit Karma regarding a severe breach of account security, ongoing unauthorized transactions, and a lack of proper response from the institution despite multiple attempts on my part to resolve the issues. The negligence and mismanagement displayed by Credit Karma have caused significant financial harm and distress, and I seek assistance from the CFPB to ensure that this matter is properly addressed. 

Background : On XX/XX/year>, I discovered that an individual who had previously stolen my phone and wallet and hacked into my Credit Karma account had accessed it once again. I immediately took steps to report the issue to Credit Karma, and initially, they implemented several security measures, including locking the account, changing the login email and phone number, and adding security questions. However, due to subsequent actions taken by Credit Karmas Member Services team, these security measures were undone, leading to further unauthorized access and additional financial losses. 

Details of Mismanagement and Security Failures by Credit Karma : XXXX. Reverting Security Settings : Credit Karmas Member Services unlocked my account, created a new account number, and inexplicably reverted my login credentials to the compromised email address controlled by the hacker. This decision directly undermined all previous security efforts and allowed the unauthorized party to access my account again. 


2. Removal of Security Questions : Despite my specific request to add security questions for additional protection, these were deleted by Credit Karmas Member Services without my authorization. These security questions were critical to preventing further unauthorized access and should have remained in place.

3. Sending Notifications to the Hacker : When my account was reactivated, Credit Karma sent essential notifications, including the notice of my debit card delivery, to the compromised email rather than to my secure email. This provided the unauthorized individual with information needed to continue accessing my account. 



Impact and Unresolved Disputes : As a result of Credit Karmas actions, the unauthorized party gained access to my account, withdrew my funds, and left me in financial distress. I have not received any of the disputed funds related to transactions made from XXXX through the present, despite filing disputes with Credit Karma on both XX/XX/year>, and XX/XX/year>. Instead, I have been forced to borrow money to cover basic expenses due to the ongoing failure of Credit Karma to safeguard my account and return my funds. 

Lack of Resolution and Unresponsiveness : I have attempted to resolve this issue directly with Credit Karma, sending multiple letters to their customer service team, including my most recent letter dated XX/XX/year>, requesting immediate action and reimbursement. To date, I have received no response or indication that corrective action is being taken. Credit Karmas lack of communication and repeated security lapses demonstrate a failure to prioritize customer protection. 

Request for CFPB Assistance : Given the repeated negligence by Credit Karma and their failure to resolve this matter, I am requesting the CFPBs assistance in the following : 1. Immediate Action by Credit Karma to reimburse the disputed transactions from XXXX through XX/XX/year>, totaling all amounts filed in my disputes from XX/XX/year>, and XX/XX/year>. 


2. Improved Account Security Measures to prevent further unauthorized access and to ensure that proper protocols are in place, including the restoration of security questions and safe handling of all future account notifications. 


XXXX. A Formal Investigation into Credit Karmas security practices and handling of customer accounts, especially regarding the repeated errors in my case. 



This experience has caused extreme hardship and distress, and Credit Karmas inadequate handling of the situation warrants scrutiny to prevent similar issues for other consumers. I trust that the CFPB will help to ensure accountability and a fair resolution. 

Thank you for your attention to this matter. Please feel free to contact me if additional information or documentation is required.

Company response to consumer: Closed with monetary relief