Customers Allege Inadequate Fraud Prevention Systems at JPMorgan Chase
Two customers of JPMorgan Chase are expressing their dissatisfaction with the bank’s fraud prevention systems after $137,000 was stolen from their account within seconds. Scott and Kate Zoll of Golden, Colorado received a text that appeared to be from Chase, asking if they had initiated a $4,500 wire transfer. Scott immediately contacted his local branch and was given the number for the bank’s fraud department. However, when he replied to the text with “N,” he received a call from scammers who knew his business account’s bank number and requested a one-time pin (OTP) code from his phone. After providing the code, their account was emptied.
Concerns Over Discrepancies in Suspicious Activity Monitoring
The Zolls are now questioning why Chase is quick to flag small debit card transactions as suspicious but fails to notice when an entire bank account is drained through wire transfers to random banks in other countries. They highlight that Chase can identify when someone is using their debit card in Mexico, for example, but cannot raise suspicion when money is being sent to Guam. The couple has been in discussions with Chase for weeks and although they will receive some of their money back, they do not expect to recover all of it.
Frustration Over Limited Coverage by FDIC
The Federal Deposit Insurance Corporation (FDIC) can cover losses up to $250,000 in case of a bank failure. However, phishing scams like this do not typically qualify because they require authorization from the account holder. This leaves victims vulnerable and without adequate protection. Despite ongoing efforts to resolve the issue with Chase, Kate Zoll does not hold much hope for recovering all of their funds.
JPMorgan Chase Responds to the Incident
In response to the incident, JPMorgan Chase released a statement advising customers to be cautious of new contacts requesting codes, access to devices, or money transfers. The bank emphasized that neither they nor other reputable institutions would ask for such information, but scammers would. They also highlighted that wire transfers are final payments and are rarely successfully recalled once sent.
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