Introduction
A growing number of USAA members are reporting significant losses due to bank fraud, raising concerns about the security measures of the financial institution.
Initial Report
Many USAA members have come forward after losing thousands of dollars to bank fraud. These members express their disappointment and loss of trust in USAA.
Member Experiences
Curtis Mara, a loyal USAA member for 28 years from Georgia, witnessed fraudulent activity in his accounts in real-time. He, along with other members, reported seeing someone making deposits and withdrawals from their accounts without detection by bank fraud investigators. This situation led to Curtis losing $14,173.89. Other members have shared similar experiences, with some selling possessions to cover negative balances and avoid credit score impact.
Security Breaches and Legal Issues
USAA has a documented history of security breaches. One notable incident involved a check forgery scheme that resulted in a $7 million loss and the indictment of 21 individuals. Another data breach was reported by USAA in October 2022. Additionally, the Financial Crimes Enforcement Network penalized USAA with $140 million for failing to maintain an effective Bank Secrecy Act program, which allowed millions of dollars in suspicious transactions to go unreported.
Customer Complaints and Company Response
According to the Better Business Bureau, USAA has received 5,800 customer complaints within the past three years. Despite declining a camera interview, USAA issued a statement highlighting their fraud monitoring and security measures. In some cases, members received refunds after investigations, with the total amount refunded exceeding $43,000.
Conclusion
Bank fraud remains a significant issue for financial institutions, including USAA. Members are advised to stay vigilant and seek help if they suspect fraudulent activity.
