Consumer complaint received 2026-04-21 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: CO

Complaint narrative:
NOTE : I contend that the XXXX XXXX XXXX transaction involved stolen credentials, as XXXX supports, and this proves that the " merchant '' was a scammer, not a legitimate seller. Just as important, I did not receive a valid product. I received " No Value '' and never received the tickets purchased with your specific card, making the charge invalid under the Electronic Fund Transfer Act ( Reg E ) protections because the merchandise was not received. Specifically, the tickets received were paid for by a different, likely stolen, credit card. The tickets were declared invalid. XXXX ( the scammer ) received the XXXX XXXX XXXX charge of {$770.00}, and I received nothing ( no tickets ). On XX/XX/XXXX, I purchased legitimate XXXX tickets for my husband and me through the official XXXX website for {$860.00}. I received a valid sale receipt and e-ticket from XXXX. On XX/XX/XXXX, I wanted to modify the reservation to include a route through Florida. I searched XXXX for an XXXX phone number and called what I believed was XXXX customer service. An individual who identified herself as an XXXX representative answered. The call included hold music and automated messages that appeared legitimate. The individual requested my reservation number, which I provided. The representative stated she could cancel the existing reservation and create a new one with modifications at a lower cost. The representative canceled my original reservation and emailed me an XXXX refund receipt. The representative then requested my debit card information to complete the new reservation. I provided my debit card number. The representative stated I would receive the e-ticket and receipt within one hour. My daughter, my husband, and I were present on the call, which was on speakerphone. After two hours without receiving the e-ticket, I checked my credit union account and confirmed that a {$770.00} charge had posted. I located a phone number on my original XXXX ticket and called the legitimate XXXX customer service line. The XXXX representative confirmed my original reservation had been canceled, but found no active reservations under my name or my husband 's name. I immediately contacted Navy Federal Credit Union on the evening of XX/XX/XXXX, to report the fraudulent charge. The credit union placed a hold on the transaction and initiated a debit card dispute process. My debit card was blocked and replaced. On XX/XX/XXXX, I contacted XXXX customer relations and reported the incident. XXXX representatives explained they were experiencing widespread problems with fraudulent websites and phone numbers appearing in search engine results that posed as authorized XXXX vendors. I was directed to file a report with XXXX Police, which I did. I provided XXXX Police with all phone numbers, email addresses, text messages, and documentation related to the fraud. On XX/XX/XXXX, I received an email from the same fraudulent representative. The email was from someone identifying herself as XXXX XXXX, Reservation Specialist, with a phone number listed as XXXX. Attached to the email were e-tickets for my husband and me with a reservation number. I called the legitimate XXXX customer service to verify the tickets. XXXX confirmed the reservation under my husband 's and my names, but the credit card number associated with the purchase did not match my debit card. XXXX representatives placed me on hold for an extended period and returned to inform me that the tickets had been flagged as purchased with a possibly stolen credit card. The tickets were purchased from an unauthorized third-party vendor. On XX/XX/XXXX, XXXX sent me written documentation confirming that the reservation had been made through an unauthorized third-party vendor using someone else 's credit card, which had since been refunded to that cardholder. The letter referenced a reservation for travel from XXXX, Colorado, to a location in XXXX on XX/XX/XXXX, with a ticket cost of {$630.00}. XXXX explained that fraudulent actors typically obtain legitimate reservation numbers and use them to cancel existing reservations, making the scam appear legitimate to victims. The scammers use stolen credit cards to purchase tickets for victims while keeping the victims ' payment for themselves. XXXX further explained in their letter of XX/XX/XXXX, " XXXX and its customers have been impacted by fraudulent websites and phone numbers that appear in search engine results. These sites mislead customers into believing they are booking directly with XXXX using stolen credit card information to make purchases. '' ( End of quote. ) In my XX/XX/XXXX, telephone conversation, XXXX representatives explained the scammers ' typical method of operation. That is, they collect victims ' credit card information but do not use it immediately to purchase tickets. Instead, they use other stolen credit cards to purchase tickets for the victim. If the victim does not immediately report the fraud, the scammers then use the victim 's credit card information to purchase tickets for other victims, creating a cycle of fraud. XXXX told me that because I reported the fraud immediately and had my card blocked, the scammers were unable to use my card information for additional fraudulent purchases. On XX/XX/XXXX, Navy Federal Credit Union initially issued a provisional credit while investigating the dispute. The XXXX XXXX later denied my dispute, stating that I had provided my debit card information to the merchant and received tickets in return. As previously stated, and confirmed by XXXX, " The transaction involved stolen credentials, as XXXX supports, and this proves that the 'merchant ' was a scammer, not a legitimate seller. Just as important, I did not receive a valid product. I received " No Value '' and never received the tickets purchased with my specific card, making the charge invalid under the Electronic Fund Transfer Act ( XXXX XXXX ) protections because the merchandise was not received. Also, on XX/XX/XXXX, after discovering the fraud, I purchased new legitimate XXXX tickets directly through the official XXXX website to ensure my husband and I could still travel in XX/XX/XXXX. I provided documentation of this subsequent legitimate purchase to Navy Federal Credit Union as part of my appeal. On XX/XX/XXXX, I received a denial letter from Navy Federal Credit Union regarding my Debit Card dispute, which stated, " ... We found that no error occurred and we are unable to process the claim in your favor for the reason ... You were charged for the amount you owed after receiving merchandise or a service. As a result, the temporary credit of {$770.00} will be removed on XX/XX/XXXX. As of the date of this notification, your dispute claim has been closed. '' ( End of quote. ) I filed a formal appeal with Navy Federal Credit Union XXXX XX/XX/XXXX, after receiving their denial of my dispute of a {$770.00} charge to my debit card account by XXXX on XX/XX/XXXX. Navy Federal Credit Union Dispute Center determined that the {$770.00} debit card claim against XXXX ( XXXX ) was valid and stated the following reason : " You were charged for the amount you owed after receiving merchandise or service. '' My appeal included new evidence : the product was paid for with a different, likely stolen, credit card this proves that the " merchant '' was a scammer, not a legitimate sellerspecifically, XXXX documentation explaining the transaction 's fraudulent nature. Once again, on XX/XX/XXXX, Navy Federal Credit Union denied my appeal by stating the following : " ... While we are sympathetic, we regret we are unable to assist you with your dispute. XXXX XXXX did attempt, in our best effort, to recover these funds for you ; however, the merchant 's bank declined our claim. At this time, we have exhausted all efforts to resolve this matter in your favor. We can only suggest that you continue to seek resolution directly with the merchant. We regret that we are unable to assist you further with your dispute and do value your membership. '' ( End of quote. ) On XX/XX/XXXX, I filed a police report with the XXXX XXXX XXXX in XXXX, Colorado, Case Number AP XXXX. I was initially advised the following : " I advised XXXX that the likelihood of identifying and prosecuting the suspects was low, as these types of scams are frequently operated by individuals located overseas who use false identities and quickly shut down operations when investigated. I explained that if XXXX Police identified suspects within the United States, this case number could be used to support their investigation and prosecution. I advised XXXX to provide the case number and all documentation to Navy Federal Credit Union for her appeal and to contact XXXX Police to provide them with this case number as well. '' ( End of quote. )

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