Consumer complaint received 2026-04-20 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: SOUTHSTATE BANK CORPORATION
State: SC

Complaint narrative:
XXXX XXXX was a victim of a Business Email Compromise Scam which resulted in {$100000.00} being stolen from the business. Someone impersonating an employee of subcontractor XXXX XXXX replied that they no longer accepted checks and directed us to pay by ACH and subsequently sent an email with ACH instructions for an account at South State Bank. Not realizing that this email was fraudulent we disbursed a payment of {$88000.00} on XX/XX/XXXX. The email thread with the fraudster continued over the next several months with additional requests for payment status and XXXX payments of {$9800.00} and {$9800.00} respectively were sent via ACH on XX/XX/XXXX. XXXX was contacted on XX/XX/XXXX by the subcontractor who communicated they had not received payment for the invoices which is when we discovered the fraud. Law enforcement has confirmed the following : A personal account was opened at South State on XX/XX/XXXX for a XXXX woman in XXXX and the first deposit in the amount of {$88000.00} was an ACH from XXXX business account on XX/XX/XXXX. One day following that deposit XXXX in person withdrawals were made between XX/XX/XXXX and XX/XX/XXXX totaling approximately {$88000.00}. Additional deposits were made on XX/XX/XXXX in the amounts of {$9800.00} and {$9800.00} totaling {$19000.00} and withdrawn in the same manner ( XXXX transactions ) between XX/XX/XXXX and XX/XX/XXXX. The transaction documentation reflects that the majority of the larger withdrawals were conducted in person at branch locations, as indicated by handwritten withdrawal slips and branch/teller transaction coding . Following the ACH deposits and associated cash withdrawals, the banks internal records reflect that the account was flagged for new account fraud. South State Bank finally closed the account on XX/XX/XXXX only after all of the funds sent by XXXX XXXX XXXX XXXX to XXXX XXXX were withdrawn. Control or manipulation of the account holder by a third party has been determined by law enforcement. An Incident Report was filed with local law enforcement ( XXXX XXXX Police Department, XXXX XXXX ) on XX/XX/XXXX and a detective was subsequently assigned and is nearing completion of his investigation. An XXXX complaint was filed with the FBI on XX/XX/XXXX however no response has been received. A letter was sent by XXXX XXXX to South State Bank on XX/XX/XXXX requesting the information noted previously. The response from XXXX XXXX dated XX/XX/XXXX acknowledged the transfers were made in response to fraudulent actions but claimed that The Bank maintains robust customer identification and transaction monitoring activity to detect and prevent fraudulent use of accounts but states we will not provide specific information regarding.. .any actions taken by the Bank specific to the account. Complaints were filed with the FDIC and XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX. A response was received from the XXXX XXXX XXXX XXXX XXXX on XX/XX/XXXX stating that the complaint was forwarded to the XXXX. A second letter was sent to South State on XX/XX/XXXX demanding that funds to be reimbursed to XXXX XXXX due to inadequate XXXX and XXXX procedures and inquiring about the existence of XXXX XXXX insurance or a Goodwill account for issues such as this to which no response has been received to date ( XX/XX/XXXX ).

Company response to consumer: Closed with explanation