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How to Protect Yourself and Respond Effectively

Recently, several USAA members have reported losing funds due to fraudulent activities, leading to significant financial and emotional distress. Curtis Murrah, a loyal USAA customer for 28 years, discovered unauthorized deposits and withdrawals in his account, leaving him and his wife unable to make their mortgage payment. Unfortunately, Murrah’s experience is not unique. Many USAA members have faced similar issues, losing trust in the institution due to a lack of recourse and support.

The Growing Problem of Fraud at USAA

News 4 San Antonio highlighted the concerns of several USAA members who have lost funds to fraud and have struggled to receive assistance. The Facebook group “USAA Fraud and Victims” now has 2,900 members, all sharing their experiences of financial loss and inadequate responses from USAA.

One member, Tiffany Tienda, lost approximately $3,700 to fraud and found the institution’s dismissive attitude to be emotionally and mentally draining. Another member, Roberto Rangel, a military veteran, lost thousands of dollars in retirement savings and had to sell prized possessions to protect his credit score. Despite alerting USAA about suspicious activity, $9,000 was stolen from his account.

These incidents are not isolated. According to the Better Business Bureau, there have been 4,119 complaints against USAA in the last three years. In April, a federal grand jury indicted 21 people for stealing nearly $7 million from USAA customers, primarily targeting older individuals with high bank balances. Additionally, a data breach last year potentially impacted 19,000 members due to unauthorized sharing of access credentials by employees at a USAA contractor. In 2022, USAA paid $140 million in civil fines for failing to report suspicious transactions adequately.

Steps to Protect Yourself from Bank Fraud

Given the prevalence of fraud, it is crucial to take proactive steps to protect yourself and respond effectively if you fall victim to such activities. Here are some strategies to safeguard your financial information and navigate the aftermath of fraud:

Monitor Your Accounts Regularly

Regularly monitoring your bank accounts is the first line of defense against fraud. By keeping a close eye on your transactions, you can quickly identify and report any unauthorized activities.

• Check Statements: Review your bank statements monthly to ensure all transactions are accurate and authorized.
• Use Online Banking: Utilize online banking tools to check your account balances and transactions frequently.
• Set Alerts: Enable account alerts for large transactions, low balances, and unusual activities to receive immediate notifications.
  
  

Strengthen Account Security

Enhancing the security of your accounts can prevent unauthorized access and reduce the risk of fraud.

• Strong Passwords: Use strong, unique passwords for your banking accounts and change them regularly.
• Multi-Factor Authentication: Enable multi-factor authentication (MFA) for an added layer of security.
• Secure Devices: Ensure your devices are protected with antivirus software and are regularly updated to guard against malware and other threats.
  
  

Be Cautious with Personal Information

Be vigilant about where and how you share your personal information to reduce the risk of identity theft and fraud.

• Phishing Scams: Be wary of emails, texts, and phone calls requesting personal information. Verify the source before responding.
• Secure Websites: Ensure that websites are secure (look for “https” and a padlock icon) before entering personal information.
• Social Media: Avoid sharing sensitive information on social media platforms.
  
  

Report Suspicious Activity Immediately

Quickly reporting suspicious activity can help mitigate the damage caused by fraud.

• Contact Your Bank: Report unauthorized transactions to your bank immediately. Keep a record of your communications and follow up regularly.
• File a Report: File a report with your local police department and the Federal Trade Commission (FTC) to document the fraud.
• Credit Bureaus: Place a fraud alert on your credit report by contacting one of the three major credit bureaus (Experian, Equifax, or TransUnion).
  
  

Steps to Take if You Fall Victim to Bank Fraud

If you become a victim of bank fraud, it is essential to take immediate and comprehensive steps to address the issue and protect your finances.

Document Everything

Keep detailed records of all communications and actions taken in response to the fraud.

• Communication Logs: Record dates, times, and summaries of conversations with your bank, law enforcement, and other relevant parties.
• Transaction Records: Keep copies of your bank statements, transaction records, and any suspicious activities you identify.
• Correspondence: Save all correspondence related to the fraud, including emails, letters, and messages from your bank.
  
  

Work with Your Bank

Collaborate closely with your bank to resolve the issue and recover lost funds.

• Fraud Department: Work with your bank’s fraud department to investigate and address the unauthorized transactions.
• Dispute Resolution: Follow the bank’s dispute resolution process to formally challenge the fraudulent activities.
• Refunds and Compensation: Advocate for refunds and compensation for the lost funds and any associated fees or charges.
  
  

Protect Your Credit

Take steps to protect your credit and minimize the impact of the fraud on your credit score.

• Credit Reports: Regularly check your credit reports for any unauthorized accounts or activities. You can obtain free credit reports from AnnualCreditReport.com.
• Credit Freeze: Consider placing a credit freeze on your credit reports to prevent new accounts from being opened in your name.
• Credit Monitoring: Enroll in a credit monitoring service to receive alerts about changes to your credit report.
  
  

Seek Legal Assistance

If you face significant financial losses or challenges in resolving the issue, consider seeking legal assistance.

• Consumer Protection Attorney: Consult with a consumer protection attorney who specializes in financial fraud to explore your legal options.
• Legal Aid Services: If you cannot afford a private attorney, seek help from legal aid services or nonprofit organizations that provide support to fraud victims.
  
  

USAA’s Response and Resolution

In response to the reported fraudulent activities, USAA has acknowledged the unfortunate reality of bank fraud and expressed its commitment to fighting fraud and protecting its members. News 4 San Antonio’s efforts led to USAA revisiting seven cases, with five resolved in favor of the customers, including Curtis Murrah, Tiffany Tienda, and Roberto Rangel, who received refunds for their lost funds.

While USAA’s efforts to resolve these cases are a positive step, the institution must continue to strengthen its security measures and support systems to restore trust among its members. Proactive measures, clear communication, and robust support can help mitigate the impact of fraud and protect the financial well-being of USAA customers.

Bank fraud is a significant concern that can have devastating effects on individuals and families. By taking proactive steps to monitor accounts, strengthen security, and report suspicious activities, you can protect yourself from fraud. If you fall victim to bank fraud, acting swiftly and comprehensively can help mitigate the damage and facilitate recovery. Institutions like USAA must also take responsibility for safeguarding customer information and providing adequate support to victims of fraud to maintain trust and security.