My friend had his bank account drained by fraudsters and Capital One is denying his claim, what’s his recourse now?

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This would have been investigated by the bank’s internal fraud department. I have had my card compromised several times and have always been fully refunded. However, there’s a lot more control in credit card transactions due to there being a lot of lag time between the transaction and the merchant receiving the proceeds. I can only imagine that the bank’s fraud department completed a review and came to the conclusion that your friend either directly committed the fraud, or facilitated it. When you say his password was used, do you mean his online banking (web) password? Banks are usually very strict with online access, and if their systems detect the account being accessed online from a phone or computer that hasn’t been used before, there will be a secondary layer of security whereby the user needs to provide security answers that the account holder has previously provided, or get a text code via their confirmed phone number.


Document everything and have him file a complaint with the CFPB. That will get him a much better chance of a favorable review. Stolen password + fund transfer is a lot harder to get a refund on than a credit card. No matter what he needs to move quick to make it clear he reported it in a timely manner. If he knows what other bank the funds went to then he should report it as fraud to them too — might let them freeze the funds or at the very least, shows he made all possible efforts


I have a Capital One account. You can’t transfer money to an external account without verifying it first. If I try to log in to the account on a new device, I need to authenticate by entering a code they text to my phone. If I try to Zelle money to a new recipient, I also need to verify by entering a code they text to my phone. I’m not saying your friend lied, but most banks use 2-step verification nowadays, and it is almost impossible for someone to steal your password and just take the money. Maybe someone who has access to his phone and PC did it. I’m not sure that is considered fraud, and therefore, covered by their policy.


Probably depends on the details of how they got his credentials and where the money was sent, etc


Your friend needs to do his dispute in writing to capital one. Document everything to preserve his rights. Doing things over the phone let’s the bank slip out of it’s legal obligations under banking laws. Time is also of the essence. Most steps must be taken from 30-60 days depending on your state’s adoption of the Uniform commercial code.