Consumer complaint received 2023-09-06 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Funds not handled or disbursed as instructed
Company: NAVY FEDERAL CREDIT UNION
State: TX

Complaint narrative:
On XX/XX/2023, I contacted Navy Federal Credit Union after receiving a notification that {$1900.00} had been transferred out of a joint account with my son. I was told that someone had compromised my sons account and submitted multiple fraud claims ( online ) for legitimate debit card transactions and as a result Navy Federal gave a temporary adjustment credit for {$1800.00}. So, not only did Navy Federal allow the fraudulent activity, they then allowed continued fraudulent activity when those funds plus the {$130.00} already in the account to be immediately transferred out to another Navy Federal member account. I told them that this was all fraudulent activity and asked why wouldnt they have flagged this as suspicious activity? The compromised accounts were closed and new accounts opened. My son set up a new username and password and we were told that we would have to call back once the transfer fraudulent activity hard posted to file a claim. Navy Federal then reversed the credit they gave in the original fraudulent act and made the account negative those amounts. We called in to ask why this was done and were told that we requested it. That is not true. We called to report that the activity they allowed was fraudulent and then the transfer was fraudulent. On XX/XX/2023 when the transfer hard posted, we called back to report the fraud. We were told the investigation could take up to 10 business days. The account was not provided a temporary credit pending the results of the investigation. At this point, Navy Federal allowed the original fraudulent activity for the crooks to receive enough money to steal, then reversed the credit after we reported that this was fraudulent activity. This made the account negative - {$1700.00}. On XX/XX/2023, Navy Federal removed {$1000.00} from my personal savings to this account, but still has not provided a temporary adjustment during the investigation and has not responded and it has now been longer than 10 business days. A total of {$3400.00} is owed by Navy Federal. {$1900.00} they allowed to be transferred out of the account and {$1000.00} that they stole from my personal savings account without my permission, and my sons XXXX  XXXX benefit received XX/XX/2023 in the amount of {$460.00}. As of today, XX/XX/2023, I have not received any communication from Navy Federal other than they had the right to transfer the money from my savings to my sons account because it was negative. They are the reason the account is negative and they are the reason its taken this long to resolve. The website states that a temporary credit is issued pending the results of an investigation when an account has been compromised and fraud reported. We did all the right things in reporting the fraudulent activity and are paying the price for Navy Federals lack of security measures.

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