I had a hunch about the big banks: They would be much less likely to compensate customers who lost thousands of dollars to scammers posing as bankers.
Two stories shared with Watchdog Nation in the same week about Chase Bank customers further strengthened my suspicions: one about a woman who lost $25,000, and another about a couple who lost $7,700.
Another watchdog group that studies banking confirmed my hunch.
The problem is that theft from personal bank accounts is “rampant” and “banks can’t keep up,” said Theresa Murray, director of the consumer watchdog. U.S. Public Interest Research Group.
“It’s absolutely true that the banks are really refusing to take responsibility for all the issues that are going on. It’s terrible.”
Murray shared some deep thoughts about banking that really resonated with me, but before I share her thoughts, I want to take a quick look at Chase cases 1 and 2.
Modern bank robbery
These stories are for those smart people who think it will never happen to them. Now, guess what?
It wasn’t that long ago that if you wanted to rob a bank, you wore a mask, carried a gun, and made sure the teller didn’t set off the silent alarm while you stuffed money into a bag, while a getaway driver kept watch outside.
That’s too much work. Now you just need one person with a phone and access to sensitive information from a data breach. Scammers impersonating banks, power companies, Amazon, etc. can make thousands of dollars in a day.
They must be laughing at us while they steal our money with their elaborate schemes.
Hunt resident Randy Benno still doesn’t know how he lost $25,000 in wire transfers — it all happened so suddenly.
She got a text message on her phone that looked like it was from Chase and she clicked on it. Whoa.
He received a call from a man claiming to work for Chase Bank. Benno’s caller ID indicated the call was from Chase Bank (spoofed). Benno said he thought he might be the victim of a scam and wanted to help. What an irony – using fraud prevention measures to perpetrate a scam.
She said she never gave out any information, such as account numbers or passwords, but the thief knew how much money was in her savings account.
“It feels very creepy,” Benno said.
This customer, a 40-year Chase banker, told me, “I’m not one to be taken advantage of. … I feel violated, confused, and can barely remember how this happened.”
“I can’t believe I hung up the phone and didn’t call the bank.”
I asked Greg Hassell, a spokesman for Chase Bank in Texas, to look into Benno’s case.
He reported, “Unfortunately, she became the victim of a scam. Scams like this are heartbreaking. We ask all customers to ignore any requests for money over the phone, text or internet, or requests for access to your computer or bank account. To prevent scams, the bank will never call, text or email you asking you to send money to yourself or anyone else.”
The Second Chase Incident
Sally Civero of Dallas, like Benno, isn’t sure how she lost $7,700.
Her husband, Philip, said the bank told the couple that it believed his wife had initiated the transfers and had gained financial advantage from them.
If that were true, the husband demanded that the bank file a police report charging his wife with theft, but the bank failed to do so, according to the complaint.
“We continue to actively investigate Mr. Sivero’s case and are in contact with him about next steps,” Chase spokesman Hassell said.
Good idea
The great idea I was promised by consumer watchdog Murray is that this banking crisis is coming to a head in 2020. U.S. Senate Committee on Banking. (She encourages people to call their senators and representatives and ask for stricter regulations.) Here’s why.
“Banks are quick to flag any unusual or strange credit card transactions,” she says. “The reason is that their Money. If you dispute a fraudulent purchase, it will be a chargeback and you will lose nothing because it is required by law.
“But if it’s a bank account, it’s not the bank’s money. It’s your money. The bank has the ability to look at your transaction history, and have you ever wired $6,000 or $10,000? No! And yet the bank doesn’t flag it. They’re not as interested in protecting consumers as they should be.”
So you only have three options to protect your retirement savings: 1) bury it in your backyard, 2) hide it in your mattress, or 3) if you get contacted by someone you weren’t expecting to hear from, no matter what they say, hang up and call the actual company if you’re worried.
Watchdog Tips:
Avoid conversations with unexpected callers, regardless of the caller number or the sender’s official-looking email address.
Call the companies you think might be involved and see if there’s a problem. Call the number on the back of your credit card or the phone number on your monthly statement.
Don’t make payments to unexpected people using gift card numbers or apps like Zelle, Venmo, CashApp, or other instant payment options.
Protect your account with two-step verification.
Avoid public Wi-Fi systems, such as those at airports.
sauce: PIRG.org
