CARLSBAD, Calif. (KGTV) – Bank of America customers say they’ve refunded thousands of dollars suspected of being released from their accounts in the middle of a SIM swapping attack.
“Getting back money was a huge victory for us and we really appreciated your help,” Justin Chang said in an interview with Team 10.
Last year, Team 10 reported that Carlsbad police were investigating after alleged fraudsters were able to drain $38,000 from Chang’s bank account by taking over the phone number in a SIM swapping attack.
Hackers convinced Xfinity Mobile to transfer their mobile phone numbers to a new device last September, Chan said. The scammer was able to change Chan’s password after obtaining a two-factor authentication code for a period of three hours midnight.
“It was very fast,” he said.
Three wire transfers totaling $38,000, are being made, and Chang drains a joint bank account that he uses with his sister, paying for his older mother’s expenses.
The initial transfer of $20,000 was sent to your Wells Fargo account.
Court records show Team 10 is found to be consistent with the identity of a Sacramento resident, a convicted felon and who served time in fraud.
Two other wire transfers, $15,000 and $3,000, went to Chan’s Robinhood account.
“They transferred $18,000 from my Bank of America to my Robinhood. Once they did that, they could transfer the money to their personal debit card via Robinhood,” Chan said.
Watch: Bank of America customers will pay $38,000 after replacing the SIM
https://www.youtube.com/watch?v=c9z2lg4zgpe
Bank of America initially ended its investigation into Chan’s fraud claims, but after we were involved, it resumed.
“They gave us a lot of trouble. It was… when you intervened, you could contact them, so we could take some action,” Chan said.
In January, Chang provided Bank of America with a letter from the parent company of Xfinity Mobile, stating that his account is “highly likely to be accessed by third parties as a result of fraud.”
However, the bank still had not returned the money.
Team 10 followed up again on January 27th and asked why Chan didn’t receive a refund. The bank said it was reviewing the incident.
Amol Brown
We kept pushing the bank in February and Chang finally got a partial refund of $20,000.
“Me and my sister were totally uplifted,” Chan said.
But the brothers’ battle was not over.
Chan said Bank of America refused to refund the remaining $15,000 and $3,000 wire transfers that went to Robin Hood.
Team 10 contacted Robinhood in February and asked if Chan would refund. The spokesman wouldn’t say it at first.
“They explained there was nothing they could do and they closed the case,” Chan said.
Team 10 will follow up again after more than a week, noting that Robinhood’s website has a security guarantee that “if you are qualified, you will refund your losses for fraudulent activities.”
“A big victory for us”
Suddenly, Chan returned the remaining $18,000.
“Getting money was a huge victory for us. We are truly grateful for your help,” Chan said.
In a statement, Robinhood said it will provide tools, education and technology to protect its customers from threats.
“If our clients are affected by SIM swaps, our team is conducting a thorough investigation and working directly to assess reimbursement eligibility,” a Robinhood spokesperson said.
The company added that it is encouraging customers to add safeguards to their phone accounts to prevent SIM replacements.
In Chan’s case, he can’t add a pin to his mobile account and transfer his number without that code.
He plans to leave Xfinity Mobile for another career, close his Bank of America account and go to the credit union instead.
“Big banks are big banks for a reason, but they don’t always protect you. They don’t always treat you like the customer you should be treated,” he said.
Bank of America and Carlsbad police did not return requests for comment from Team 10.
