Business, career & technology

Wells Fargo Fake Accounts Scam

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According to the regulators, employees created more than 2 million accounts that may not have been authorized by Wells Fargo customers, and covertly transferred funds to them from authorized accounts, racking up fees and other charges. They also created fake email accounts and PIN numbers to sign customers up for new accounts, most of which were unnoticed or closed shortly after opening. The scheme, which dates back to 2011, allowed employees to earn extra compensation and meet their sales targets.
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The bank has agreed to pay $2.6 million to refund fees that were charged, according to the Times. Bank managers were among those who were fired for their involvement in the scheme, but a company spokesperson declined to tell the Times whether any senior-level executives were fired or implicated.
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Is it not weird that all the fake e-mail addresses were Wells Fargo addresses? I mean"noname" is obviously a weird e-mail address, but maybe the customer was Norbert O'Name. But surely all the"@wellsfargo.com" accounts were a tip-off that the requests were coming from inside the building. Anyway, it's all pretty much as dumb as that, but on a scale that is magnificently, hilariously dumb. From the CFPB's consent order.
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The bank has agreed to pay $2.6 million to refund fees that were charged, according to the Times. Bank managers were among those who were fired for their involvement in the scheme, but a company spokesperson declined to tell the Times whether any senior-level executives were fired or implicated.
I received an email from them regarding the scam. Its pretty bad, considering it seems to be an inside job.
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In many cases bank customers were charged fines for insufficient funds and overdraft fees on accounts that they did not know existed in their names. The unauthorized credit cards also cost customers through finance and interest charges.
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You would think after something like this the government would make them shut down. Paying fines is nothing for a company that was already lying about the numbers. When will the big banks have to pay for their dirty deeds. This is out of control.
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Ouch! An inside job really? Does anyone know what State it originated from?
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They should be happy I don't have an account there because I would be filing papers against them to get all my fees back that I have ever had with them. I cannot believe they would allow this to go on for so long.
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Wells Fargo has strict quotas regulating the number of daily"solutions" that its bankers must reach; these"solutions" include the opening of all new banking and credit card accounts. Managers constantly hound, berate, demean and threaten employees to meet these unreachable quotas. Managers often tell employees to do whatever it takes to reach their quotas. Employees who do not reach their quotas are often required to work hours beyond their typical work schedule without being compensated for that extra work time, and/or are threatened with termination.
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Wells Fargo, one of the leading consumer banks in the U.S., was hit with a $185 million fine this week for forging customers’ signatures and illegally opening accounts and credit cards under their names. A culture that promoted aggressive sales tactics is the culprit, according to Consumer Financial Protection Bureau, and the bank is being rightfully pilloried in the press for its illicit actions.
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Wells Fargo has strict quotas regulating the number of daily"solutions" that its bankers must reach; these"solutions" include the opening of all new banking and credit card accounts. Managers constantly hound, berate, demean and threaten employees to meet these unreachable quotas. Managers often tell employees to do whatever it takes to reach their quotas. Employees who do not reach their quotas are often required to work hours beyond their typical work schedule without being compensated for that extra work time, and/or are threatened with termination.
All banks have quotas and I don't see them being sued for fraud. There are plenty of ways to make your numbers without cheating people and defrauding them out of money.
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