Capital One Bank and other financial institutions are being investigated for possibly opening fake bank accounts for their customers, similar to what happened at Wells Fargo.

Starting in 2016, Wells Fargo was constantly in the news after it was revealed to the public that they had opened millions of fake bank accounts without customer authorization. These fake bank accounts were reportedly opened by associates to meet sales goals, often being rewarded with lucrative bonuses.

Across the country, Wells Fargo employees opened around 3.5 million fake bank accounts in their attempt to meet stressful sales goals and secure higher compensation.

After the scandal was revealed, Wells Fargo agreed to pay a $142 million settlement. The bank also faced fines and an order to reorganize their sales goals system which motivated the creation of fake bank accounts.

The Office of the Comptroller of the Currency (OCC) responded to the Wells Fargo fake bank account scandal by opening an investigation into 40 other large and midsize banks across the country. The investigation looked for evidence of fake bank accounts as well as other violations.

In June 2018, American Banker reported that the OCC investigation found potential evidence of fake bank accounts at several banks. A spokesperson for the OCC, Bryan Hubbard, told American Banker that the fake bank accounts seemed to be motivated by “short-term sales promotions without adequate risk controls, deficient account opening and closing procedures, and isolated instances of employee misconduct”.

The OCC reported that it issued industry wide warnings on five issues and over 250 individual directives for banks to work on. Despite the corrective action, the OCC has said that they will not reveal the names of the banks involved in the investigation. Hubbard did not provide American Banker with a reason for the move and did not confirm any issues found in the investigation. However, the issues noted by the OCC in their investigation have reportedly been taken care of.

“Most banks took timely actions during the review to address weaknesses in policies, procedures, and controls; incentive programs; and their risk governance frameworks,” Hubbard said in an email statement to American Banker. “As a result, systems and controls in these banks are now better integrated and more apt to identify inappropriate sales activities in a timely manner.”

Although the OCC has decided not to reveal which banks created fake bank accounts for their customers, attorneys are looking in to the issue. Should they be able to identify fake bank account practices by several large or midsize banks, consumers may be able to recover compensation for fake bank accounts opened in their names.

Legal experts are investigating several banks including: Bank of America, BOK Financial, Capital One Bank, HSBC, Royal Bank of Canada, and TD Bank. While the matter is being investigated, customers of Capital One Bank and other financial institutions may monitor their financial accounts for signs of fake bank accounts.

Signs of a fake bank account may include the following:

• Overdraft Fees: When fake bank accounts are opened for a consumer, bank employees may move money from another account. This could result in an overdraft fee due to balance discrepancies which could warn consumers of a fake bank account.
• Bank Fees: Fake bank account practices may not only involve new accounts, they may also include the upgrading of accounts without consent. If consumers are charged a bank fee for low balances, this may be a warning sign of unauthorized account changes which require a minimum balance.
• Interest Charges: These charges may occur if an unauthorized credit card was opened. Monitoring for these charges may help consumers detect fake bank accounts.
• Credit Report Changes: A new credit card will also appear on a monthly credit report which can be checked by a consumer. Any changes to a credit report should be checked thoroughly and reviewed for authenticity.

An unauthorized bank accounts lawsuit investigation is now looking into banking sales practices at the following banks:

• Bank of America
• BOK Financial
• Capital One
• HSBC
• Royal Bank of Canada
• TD Bank

If you are a customer at one of the banks listed above and you were charged for fees from a bank account you did not open, you were issued a credit card you did not request, or you were enrolled in services you did not authorize, you may qualify to join this fake bank account class action lawsuit investigation.

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