Has a fake bank account been opened in your name?

Some banks may be opening accounts without the knowledge or authorization of their customers. In some cases, this may mean that the customers become enrolled in services for which they did not sign up.

The most well-known fake bank account scandal is that of Wells Fargo, but employees at other banks may be engaging in similar tactics in order to meet impossibly high sales targets. This may affect consumers when they are charged fees for a fake bank account that they did not open themselves.

Banks under investigation for potentially engaging in this kind of fake bank account scandal include TD Bank, Bank of America, BOK Financial, Capital One, HSBC, and Royal Bank of Canada.

Fake Bank Account Scandal

The public has heard of the situation with Wells Fargo, which made headlines in 2016 and 2017 after it was found that the bank’s employees had opened a fake bank account for millions of consumers. This was allegedly done for the employees’ benefit: it was to help them meet sales targets and qualify them for bonuses.

All in all, Wells Fargo reportedly created a total of 3.5 million fake credit card and bank accounts to pad their sales numbers. In some cases, customers may have signed up for services for which they did not enroll, sometimes incurring additional charges as a result.

A $142 million settlement was reached for the Wells Fargo fake bank account scandal. The bank also agreed to revise the unrealistically high sales goals at the heart of these deceptive practices.

Wells Fargo, however, is reportedly not the only bank that has pressured employees to open a fake bank account for countless customers because of high sales targets.

Indeed, a federal review was launched after the Wells Fargo scandal that found “weaknesses” at other banks that showed employees engaging in similar deceptive behavior. The probe looked into dozens of large and medium banks, finding that many may have engaged in these practices. The Office of the Comptroller of the Currency (OCC) launched the review back in 2016.

The OCC found that the creation of a fake bank account can be caused by “short-term sales promotions without adequate risk controls, deficient account opening and closing procedures, and isolated instances of employee misconduct.”

So how do you tell if you your bank has engaged in this kind of deceptive behavior? Keep your eye out for overdraft fees that you didn’t expect, bank fees associated with services you didn’t sign up for, additional interest charges, or changes to your credit report. Additionally, you can always call your bank and ask to review your accounts.

Filing a Fake Bank Account Lawsuit

Wells Fargo has been hit with litigation over this kind of fake bank account scandal, accused of opening accounts in its customers’ names without their prior knowledge or permission.

If you have been affected by a fake bank account at another bank, such as TD Bank, Bank of America, Capital One, HSBC, Royal Bank of Canada, or BOK, you may be able to file a lawsuit.