Fraudsters drain $20,000 from JPMorgan Chase accounts after ‘banking loophole’ leaves customers unprotected: Report

JPMorgan Chase says a customer in Utah will not receive compensation after fraudsters stole $20,000 from her account while she was on vacation.
KSL-TV, an NBC affiliate news station, reported that Catherine England was in Florida when someone believed to be from Chase’s “fraud department” called her.

The man on the other end told England that someone had transferred $20,000 from her account and that she needed to follow his instructions to get the money back.
To get his money back, England followed all of the sender’s instructions and read him several verification codes he received via text message. After talking on the phone for 2 hours, she was told to delete the Chase app from her device and wait for a call back. There was no phone call at all.
“An hour has passed. Two hours have passed. I said, ‘Something doesn’t feel so right.’ So we went back to the hotel and called Chase.”
After speaking with the real Chase, England learned that she had been tricked by a scammer into transferring $20,000 from her account.
Chase rejected her claim because it had no obligation to compensate KSL-TV for losses resulting from what it called a loophole in electronic funds transfer laws.
The law generally protects people who have had their accounts hacked or cards stolen, but it does not apply to people who are tricked by fraudsters into authorizing transactions.
Carla Sanchez-Adams, senior staff attorney at the National Consumer Law Center, said that because of the limited protections of the Electronic Fund Transfer Act, passed in 1978, such cases are now becoming more common for bank customers, especially since the pandemic. He said it was too common.
“It affects everyone and it’s a heartbreaking story because there really is no protection…
What has happened since the pandemic of 2020 is that wire transfers are now possible through digital banking. Previously, if you wanted to initiate a large transfer via money transfer, you had to go to a branch in person. Now you can set it up and do it online.”
Don’t miss a beat – subscribe to get email alerts delivered straight to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Daily Hodl Mix Surfing

Check out the latest news headlines

&nbsp

Disclaimer: Opinions expressed on The Daily Hodl do not constitute investment advice. Investors should do their due diligence before making high-risk investments in Bitcoin, cryptocurrencies, or digital assets. Please note that your transfers and transactions are entirely at your own risk and that you are responsible for any losses that may occur. The Daily Hodl does not recommend the purchase or sale of any cryptocurrency or digital asset, and The Daily Hodl is not investment advice. The Daily Hodl engages in affiliate marketing.

Image created by: Midjourney
The post Fraudsters siphoned $20,000 from JPMorgan Chase account as ‘banking loophole’ left customers unprotected: Report appeared first on The Daily Hodl