Consumer complaint received 2025-07-12 00:00:00
Product: Checking or savings account — Checking account
Issue: Managing an account — Problem using a debit or ATM card
Company: MORGAN STANLEY & CO. LLC
State: WA

Complaint narrative:
On XX/XX/XXXX I was contacted by what appeared to be a representative of etrade by Morgan Stanley. My phone log show the call was from etrade and the number I have confirmed was a valid etrade number. The individual said a fraudulent was detected and asked me if I had authorized a transaction in Georgia. I had not so told him that. He said he would call back and help me to lock down the account to prevent future transactions. I heard back from him again on XX/XX/XXXX, and he stepped me through a series of steps claiming to be testing the security. On XX/XX/XXXX, when I went to use my Debit card there were no funds left in the account. I identified over a dozen unauthorized transactions for XXXX XXXX Eats in California which I have never used in my life. Then there was a wire transfer of the remaining balance at the time of {$4300.00}. This is when I realized I have been scammed and contacted e-trade immediately. In that call I reported the {$4300.00} wire and the XXXX Eats transactions. XX/XX/XXXX was a Saturday. I called again on Monday the XXXX and Thursday the XXXX. It took them until Thursday the XXXX to tell me to file a police report and get a notarized affidavit which I did that day and uploaded to them. I have since made numerous attempts to get answers. They gave m XXXX provisional credits for the XXXX Eats transactions, but would not return the {$4300.00} wire transfer. Then without warning they restricted the account and said they would no longer service it. On XX/XX/XXXX I sent them notice telling them the following. 

At this point you are in violation of The Electronic Fund Transfer Act ( XXXX ) and Regulation XXXX, which governs electronic funds transfers and provides consumer protection for unauthorized transactions. Under these regulations, consumers must report unauthorized transactions within a certain timeframe to limit their liability. I reported the unauthorized transactions on XX/XX/XXXX, immediately following my becoming aware of the transactions. Transactions are listed below. 
Banks are required to investigate a claim for unauthorized transactions. They must generally complete their investigation within XXXX business days of receiving notice from the customer. In some cases, the investigation period can be extended to XXXX XXXX, as long as the bank provides provisional credit to the customer during the interim period. I was only provided with provisional credits for a portion of the unauthorized transactions ( {$440.00} ) all to XXXX merchant who delivered food to an address appearing to be in California. No attempt by the bank nor law enforcement has been made to track that individual down, as best I can tell, but I have received no information on the status of the investigation despite multiple unsuccessful and lengthy phone queries. 
If a bank fails to comply with its obligations under XXXX and XXXX XXXX, the affected individual has grounds to take legal action. This typically can include filing a complaint with the Consumer Financial Protection Bureau ( CFPB ) or seeking legal assistance to pursue compensation for damages. Also, apart from the Consumer Financial Protection Bureau, people XXXX consider reaching out to the Federal Trade Commission ( FTC ), as well. 
Because you are in violation of XXXX and Regulation XXXX, this will be my last direct request to have my funds in question ( {$4300.00} ) returned to me within XXXX business days of making this letter available to you on your web site and mailing it through XXXX. If I do not receive these funds, XXXX will avail myself of all possible remedies and not simply rely upon XXXX of them. As stated above, I have consulted with legal counsel so I am prepared to file a lawsuit for the full amount plus damages for my time, I will file complaints with both the CFPB and FTC. 
My experience with XXXX XXXX XXXX this issue has been categorically awful. Your technology ( a debit card ) did not protect my funds ( the card was never stolen or given to anyone ), your customer service was inconsistent and slow to take action. I did everything I was asked to do along the way, including filing a police report and providing a signed and notarized affidavit. I have been given different answers to the same questions, and vague evasive answers to most. I have documented these interactions and they, along with the simple facts ( account transaction ) will be more than sufficient to make a legal case regarding your violations. 
I look forward to receiving my funds back and no longer doing business with etrade by Morgan Stanley. 

I also provided them with images of my phone log and suggested it XXXX have been a current or former employee that stole my money. I have had no response to this notification. 

Transactions Wire Transfer XX/XX/XXXX to XXXX XXXX - {$4300.00} Debit Transactions with XXXX XX/XX/XXXX {$30.00} XX/XX/XXXX {$20.00} XX/XX/XXXX {$31.00} XX/XX/XXXX {$20.00} XX/XX/XXXX {$29.00} XX/XX/XXXX {$27.00} XX/XX/XXXX {$19.00} XX/XX/XXXX {$32.00} XX/XX/XXXX {$15.00} XX/XX/XXXX {$18.00} XX/XX/XXXX {$29.00} XX/XX/XXXX {$20.00} XX/XX/XXXX {$25.00} XX/XX/XXXX {$45.00} XX/XX/XXXX {$31.00} XX/XX/XXXX {$20.00} XX/XX/XXXX {$25.00} Total Unauthorized Transactions = {$470000.00}

Company response to consumer: Closed with explanation