Consumer complaint received 2026-02-08 00:00:00
Product: Money transfer, virtual currency, or money service — Domestic (US) money transfer
Issue: Fraud or scam — 
Company: JPMORGAN CHASE & CO.
State: MA

Complaint narrative:
On XX/XX/XXXX, an ACH payroll payment in the amount of {$2700.00} was processed from my business account at JPMorgan Chase Bank to a XXXX Bank account. On XX/XX/XXXX, a second ACH payroll payment in the amount of {$970.00} was processed to the same XXXX account. At the time these transactions were processed, I was unaware that this account belonged to a scammer. The total amount of ACH payroll funds fraudulently transferred to the scammers XXXX account was {$3600.00}. 

Prior to these transactions, I received an email that appeared to be from XXXX of my employees requesting an update to her direct deposit information. Believing this request to be legitimate, I updated the employees banking information. I also requested a voided check for verification, which was submitted by the scammer. Based on this information, I processed payroll accordingly. 

In early XX/XX/XXXX, my employee contacted me on XXXX separate occasions to inquire about her XXXX payroll, as she had not received payment. At that point, I forwarded her the email requesting the bank update, which I had believed she sent, in order to confirm where the ACH payroll had been deposited. She confirmed that she did not send the request and that her banking information had not changed. Based on this confirmation, it became clear that the email was fraudulent and sent by an individual impersonating my employee. 

My employee then contacted XXXX Bank to determine whether the fraudulent account had been opened using her personal identifying information and to verify that she had not authorized or participated in the account activity in any way. XXXX opened a formal fraud case and provided a reference number. XXXX advised that I should contact my business bank, JPMorgan Chase, provide the case number, and request that Chase submit a Hold Harmless or Indemnity Letter in order to recover the funds. 

Upon discovering the fraud, I immediately contacted JPMorgan Chase Banks business banking department to report the incident and request assistance. Despite multiple attempts, Chase has not provided meaningful support and has continued to decline to initiate the required indemnity documentation. I also visited XXXX local Chase branch locations in person, where bankers attempted to assist me and contacted the business unit on my behalf. 

On XX/XX/XXXX, while sitting in XXXX of the bankers offices, I called XXXX Bank on speakerphone so that the banker could hear the conversation directly. During this call, the XXXX representative again confirmed, in real time, that JPMorgan Chase must initiate a Hold Harmless or Indemnity Letter in order for the funds to be returned. This information was clearly communicated and heard by both myself and the Chase banker. 

Despite this direct confirmation, the response from Chases business banking department has remained consistently inadequate. I was repeatedly told that we do not do that and it is not in our policies, without meaningful explanation, documentation, or escalation. The local branch bankers expressed frustration and indicated that they had limited authority and limited insight into centralized business processes, highlighting a significant disconnect between branch-level staff and the business banking unit. 

XXXX Bank has consistently maintained that the only pathway for recovery is for JPMorgan Chase to initiate the required indemnity documentation and coordinate directly with them. Chases business department is fully aware of this requirement. However, despite repeated requests and verification, Chase has refused to contact XXXX or initiate the necessary documentation. This refusal has prevented any attempt at recovery of the stolen funds. 

I have made repeated good-faith efforts to resolve this matter through Chases business banking department and through in-person branch visits. To date, these efforts have been unsuccessful. Chases failure to cooperate in the standard interbank recovery process has left me without meaningful recourse, despite timely reporting and clear evidence of fraud. 

As a small business owner, I relied on JPMorgan Chase Bank to provide reasonable support and advocacy in response to a documented payroll fraud and impersonation scheme. Instead, I have encountered repeated resistance, lack of transparency, and a failure to engage in the necessary procedures to attempt recovery of my funds. 

This complaint is being submitted due to JPMorgan Chase Banks continued refusal to initiate the required indemnity process with XXXX and their failure to provide adequate assistance in resolving this matter, resulting in significant financial harm to my business. As of XX/XX/XXXX, this matter remains unresolved. 

Law Enforcement Report filed regarding payroll fraud and impersonation with the following Police departments XXXX, XXXX XXXX XXXX

Company response to consumer: Closed with explanation