1 min read

5,300 Fired in Wells Fargo Fraud Scandal

Luana PASCU

September 09, 2016

5,300 Fired in Wells Fargo Fraud Scandal

Wells Fargo, the American banking and financial services giant, received a $185 million fine and a $100 million penalty after employees were caught using 2 million ghost accounts to commit credit card fraud.

From as early as 2011, some 1.5 million accounts had applied for 565,000 unauthorized credit cards, investigators found. Not only did the perpetrators open credit cards in the name of Wells Fargo clients, but they also created emails for online banking. Following an investigation, Wells Fargo has fired 5,300 employees for creating “phony PIN numbers and fake email addresses to enroll customers in online banking services,” according to the Consumer Financial Protection Bureau.

“Today’s action should serve notice to the entire industry that financial incentive programs, if not monitored carefully, carry serious risks that can have serious legal consequences,” said CFPB Director Richard Cordray. “Unchecked incentives can lead to serious consumer harm, and that is what happened here.”

The massive fraud involved circulating funds from genuine accounts into new ones, so Wells Fargo clients ended up charged “for insufficient funds or overdraft fees” because their accounts had been emptied without their knowledge.

Wells Fargo “is committed to putting our customers” interests first 100 percent of the time, and we regret and take responsibility for any instances where customers may have received a product that they did not request,” the bank announced.

The company will pay $5 million in refunds to the victims.

tags


Author



Right now

Top posts

E-mails claiming your computer was hacked and your privacy exposed - what you need to know (spoiler: you can relax - they’re bluffing)

E-mails claiming your computer was hacked and your privacy exposed - what you need to know (spoiler: you can relax - they’re bluffing)

July 29, 2021

5 min read
Watch Out for These Ongoing Bank of America Phishing Campaigns Targeting Customers in the US

Watch Out for These Ongoing Bank of America Phishing Campaigns Targeting Customers in the US

July 16, 2021

3 min read
How to protect yourself against cyberstalking

How to protect yourself against cyberstalking

July 06, 2021

2 min read
The Top Five Security Risks Smartphone Users Face Today

The Top Five Security Risks Smartphone Users Face Today

July 02, 2021

4 min read
Phishing Alert: Scammers Use Fake SharePoint and DocuSign Messages to Steal Users’ Login Credentials

Phishing Alert: Scammers Use Fake SharePoint and DocuSign Messages to Steal Users’ Login Credentials

July 02, 2021

3 min read
Your Doxxing Dossier Will Keep Growing Thicker Until You See the Danger

Your Doxxing Dossier Will Keep Growing Thicker Until You See the Danger

June 30, 2021

2 min read

FOLLOW US ON

SOCIAL MEDIA


You might also like

The Perils of Online Dating: Spotting Romance Scammers Before They Break Your Heart and Your Bank Account The Perils of Online Dating: Spotting Romance Scammers Before They Break Your Heart and Your Bank Account
Alina BÎZGĂ

August 05, 2021

3 min read
Google Fixes Five High-Severity Flaws in Chrome 92 for Windows, Mac and Linux Google Fixes Five High-Severity Flaws in Chrome 92 for Windows, Mac and Linux
Filip TRUȚĂ

August 05, 2021

1 min read
Google Drops All Support for Android 2.3.7 and Older Google Drops All Support for Android 2.3.7 and Older
Silviu STAHIE

August 04, 2021

1 min read