Despite the outrage over employees creating more than two million fake bank accounts at Wells Fargo a few years ago, account irregularities persist at other banks, according to a report from the Office of the Comptroller of the Currency (OCC).

The OCC conducted an investigation into the banking practices at more than 40 of the largest banks in the United States, and discovered evidence that employees at several financial institutions had opened new fake bank accounts for existing customers without receiving consent to do so first.

OCC spokesperson Bryan Hubbard told American Banker that until the Wells Fargo scandal broke, not many banks thought sales practices presented much of a need for risk governance.

OCC Findings

The OCC report uncovered several examples of employees at other banks opening new fake bank accounts on behalf of current customers with no proof that the customers knew about the new accounts nor that they were interested in expanding their banking portfolios.

Hubbard said the OCC determined the main reasons for the creation of fake bank accounts included short term and high-pressure sales competitions with little or no oversight, inadequate procedures to open and close accounts, and intermittent occurrences of employee improper behavior.

While the OCC did not reveal the names of the banks investigated, private attorneys are looking into potential claims against particular banks. Currently under investigation for possible employee misconduct are TD Bank, Bank of America, Capital One, HSBC, Royal Bank of Canada and BOK, among others.

An unauthorized Bank of America savings account, Capital One credit card or Wells Fargo checking account could end up affecting a customer’s credit score before the customer even knows new fake bank accounts have been opened for them by bank employees.

Solutions to Rein in Fake Bank Accounts

Few people have seen the OCC’s report, and there are no plans to make the report public. Financial guru Dan Ryan is one of the few people who had a glimpse of the report.

Ryan, banking and capital markets leader for PwC US, received an overview of the OCC’s investigation. Ryan told American Banker that 252 “matters requiring attention” (MRA) notices were sent to banks where the OCC was reviewing sales practices. In addition, the OCC issued five industrywide MRAs, but the subject matter has not been released.

Ryan said that one of the new strategies some banks have started is time-based – the sales reward to the employee is withheld until the customer begins actually using the new account, whether it’s a new Capital One credit card or a new U.S. Bank checking account.

Even so, it’s nearly impossible to verify every bank account, savings account or credit card that every bank employee initiates.

In the Wells Fargo case, one customer noticed a charge of $30 to her bank account. When she asked about the fee, Wells Fargo informed her that she had switched to a checking account that required a $5,000 minimum balance or her account would incur these new fees. She insisted she never switched to such an account and that she never authorized any Wells Fargo employee to upgrade her account, either.

If a bank employee signs you up for a Capital One credit card or an unauthorized fake bank account at any bank, you could be eligible for compensation through legal means.