Hacked credit card

[Hacked1]

What is the name of your state? North Carolina

On Dec 2, my credit card was hacked into at Navy Federal Credit Union. An unauthorized transfer of almost twenty thousand dollars was balance transferred out to an account at Goldman Sachs (which I believe is a bogus account). I do not have an account with them though. I didnt discover it until several days later after the transfer first appeared. I notified Navy Fed immediately and we tried initially to work together to resolve it. However on Dec 14 Navy Fed told me that they think Im an accomplice and now Im liable for the entire amount. They also refuse to discuss it further and consider the matter closed. What makes them judge, jury & executioner?! Do I have any legal recourse?

 

[adjusterjack]

What makes them judge, jury & executioner?! Do I have any legal recourse?

The answers to those questions are likely to be found in your cardholders agreement which is your contract with the credit card company.

Read it thoroughly and carefully.

For the amount of money involved consulting an attorney could be helpful.

 

[quincy]

What is the name of your state? North Carolina

On Dec 2, my credit card was hacked into at Navy Federal Credit Union. An unauthorized transfer of almost twenty thousand dollars was balance transferred out to an account at Goldman Sachs (which I believe is a bogus account). I do not have an account with them though. I didnt discover it until several days later after the transfer first appeared. I notified Navy Fed immediately and we tried initially to work together to resolve it. However on Dec 14 Navy Fed told me that they think Im an accomplice and now Im liable for the entire amount. They also refuse to discuss it further and consider the matter closed. What makes them judge, jury & executioner?! Do I have any legal recourse?

I think you should seek out assistance from an attorney in your area if Navy Fed is looking at you as an accomplice in the transfer.

Does anyone you are close to have access to your account information?

 

[Hacked1]

Thanks for responding.,

The answers to those questions are likely to be found in your cardholders agreement which is your contract with the credit card company.

I thought I was protected at the very least by this & I dont understand why its not being applied in my case- https://www.navyfederal.org/services/security/zero-liability.html

What’s covered by the Zero Liability policy?​

Unauthorized transactions made with the following cards:

• The Navy Federal Debit Card, both consumer and business†
• Navy Federal credit cards
• GO Prepaid†

†To ensure coverage, you must report unauthorized transactions in a timely manner. Unauthorized debit transactions must be reported to Navy Federal within 60 days of the statement date.

Does anyone you are close to have access to your account information?

No. I live alone and only do banking on my home computers. I never use a cell phone for banking. The CU initially told me someone mustve used my email to change the password.

 

[quincy]

Thanks for responding.,



I thought I was protected at the very least by this & I dont understand why its not being applied in my case- https://www.navyfederal.org/services/security/zero-liability.html

What’s covered by the Zero Liability policy?​

Unauthorized transactions made with the following cards:

• The Navy Federal Debit Card, both consumer and business†
• Navy Federal credit cards
• GO Prepaid†

†To ensure coverage, you must report unauthorized transactions in a timely manner. Unauthorized debit transactions must be reported to Navy Federal within 60 days of the statement date.


No. I live alone and only do banking on my home computers. I never use a cell phone for banking. The CU initially told me someone mustve used my email to change the password.

There appears to be some reason why Navy Federal finds your report of the transfer suspicious.

Because of the amount of money involved, it would probably be worthwhile for you to have an attorney in your area look over your bank account records.

 

[Taxing Matters]

What is the name of your state? North Carolina
However on Dec 14 Navy Fed told me that they think Im an accomplice and now Im liable for the entire amount. They also refuse to discuss it further and consider the matter closed. What makes them judge, jury & executioner?! Do I have any legal recourse?

They aren't making any legal judgment on the matter. Instead, they are protecting the CU from having to potentially credit back the money that the crook stole when they have doubts about your involvement. The CU can do that because this is primarily a contract matter and the CU doesn't owe you anything out of this unless and until a court holds that the CU is liable for the loss. Ultimately, that cost is likely to fall on the CU's insurer, the National Credit Union Administration (NCUA). The NCUA is a federal agency that insures deposits at credit unions and is the primary regulator of federal credit unions. Think of it as the CU equivlant of the FDIC for banks.

The one big difference between them is the NCUA is both insurer and primary regulator for all national credit unions whereas the FDIC is only the primary regulator of last resort for banks — if a bank has no other regulator but has FDIC insurance, the FDIC becomes the primary regulator. The primary regulator for all national banks is the Office of the Comptroller of the Currency (OCC), an agency of the Treasury Department.

Why does that matter? When the insurer is also the primary regulator the regulator will have one eye on protecting itself from having to pay out claims if it can find a reason/excuse to deny the claim. This means that if CUs want to get reimbursed for the loss if it turns out it is required to reimburse you, it needs to take care to fully cooperate with the NCUA's instructions so that it doesn't give the NCUA any grounds to deny the claim. Similarly, you'll want to make your own complaint to the NCUA in order to cover yourself, too. Like the bank, you don't want the NCUA to have a reason not to pay out the claim. If it decides your claim is good, the CU will go along with that and not draw this out by requiring you to litigate or arbitrate the matter. See the NCUA page on its Complaint Process to get started.

You are required by the NFCU to first work out any complaints/disputes with it first before you may sue. So document every communication you have with the CU to make sure you can prove that you met this provision of the contract. See the NFCU terms and conditions. You are fortunate that, unlike most financial institutions, it does not appear that the NFCU requires you to arbitrate disputes rather than go to court. You do need to know, however, that the contract does specify that Virginia law is the controlling law for interpreting the contract.

I agree that consulting an attorney who practices in the area of consumer financial institution disputes is a good idea. If you contact a lawyer in your state, make sure to point out that the controlling law will be VA law. That will make a difference in the attorney's analysis.

 

[Hacked1]

There appears to be some reason why Navy Federal finds your report of the transfer suspicious

Well whatever it is, its false. Im not an accomplice and have volunteered to help the CU find the crook or crooks. It seems they dont want to spend time or money on it. I would volunteer to a lie detector test if it would help (even though theyre flawed) if it would convince the CU to consider furthering investigation. Throwing away $20K to whoever hacked my account is infuriating. Ive had a good relationship with NavyFed for more than 10 years and had plans to help them manage their $190 billion in assets. Their attack against me is a case of friendly fire.

I agree that consulting an attorney who practices in the area of consumer financial institution disputes is a good idea.

Finding the right one over the past several weeks has been difficult obviously because of the holidays. Thats why I came here. Probably wont happen until next month. Much of the past month has been attempting damage control on my other credit accounts and notifying credit agencies. Its been much more time consuming than I imagined.

 

[quincy]

There appears to be some reason why Navy Federal finds your report of the transfer suspicious

Well whatever it is, its false. Im not an accomplice and have volunteered to help the CU find the crook or crooks. It seems they dont want to spend time or money on it. I would volunteer to a lie detector test if it would help (even though theyre flawed) if it would convince the CU to consider furthering investigation. Throwing away $20K to whoever hacked my account is infuriating. Ive had a good relationship with NavyFed for more than 10 years and had plans to help them manage their $190 billion in assets. Their attack against me is a case of friendly fire.

I agree that consulting an attorney who practices in the area of consumer financial institution disputes is a good idea.

Finding the right one over the past several weeks has been difficult obviously because of the holidays. Thats why I came here. Probably wont happen until next month. Much of the past month has been attempting damage control on my other credit accounts and notifying credit agencies. Its been much more time consuming than I imagined.

It is more difficult to find an attorney over the holidays. You are smart to be working on damage control during this time as you continue your search for legal help.

You might also wrack your brain to see if there is anyone in your life who could have transferred the money out of your account.

 

[Hacked1]

It is more difficult to find an attorney over the holidays. You are smart to be working on damage control during this time as you continue your search for legal help.

You might also wrack your brain to see if there is anyone in your life who could have transferred the money out of your account.

The odds of that are very minimal. My office is upstairs in my house and no one ever enters it,
not even my daughter who only visits occasionally.
What is most probable is the same ones who broke into my email & 3 other
accounts this past 10 months found a way to
hack in again. They tried to steal $3K last
March from my Barclaycard. A staff member at Barclaycard
said it looked like the hackers IP was in Italy
(Ive never been to Italy & I dont know how they deduced that).
Then in June my checking account at NavyFed was hacked. They
tried to buy something from Coinbase for
$3500 but were stopped in the nick of time &
the money returned. I dont even have an
account at Coinbase. I shouldve switched to
a new email company but only changed the
password as requested by NavyFed at the
time. Then in November my Paypal account was
hacked & $200 was filched, but again they
were stopped & the money returned in time.
Unfortunately a $30 payment that was pending
to my Synchrony credit card was disrupted so
they canceled my card altogether. A $12,000
credit line that took me years to build was
vaporized (Synchrony does suck). Last June I
read that hackers in Europe bribed staff
large sums inside Coinbase to leak sensitive
account data last May. Im hypothesizing that
somehow they got ahold of my data from the
email breach and the Barclaycard hack from
before.

"Coinbase confirms the arrest of a former
employee involved in the May data breach.
The breach led to a $20 million ransom
demand and compromised customer data.
Brian Armstrong announced the arrest,
emphasizing zero tolerance for bad behavior.
The May breach has cost Coinbase up to $400
million to remedy and address."
https://coincentral.com/coinbase-ceo-confirms-arrest-of-ex-agent-linked-to-crypto-hack/

 

[bcr229]

You need to set up not just new passwords but also two factor authentication on all of your financial accounts and email if you haven't already.

 

[Hacked1]

Soooo my first payment for this scam is due Jan 9. $283. The question is; if I pay it, am I consenting to the entire balance/charge?

 

[quincy]

Soooo my first payment for this scam is due Jan 9. $283. The question is; if I pay it, am I consenting to the entire balance/charge?

There is a payment plan set up? When did this happen?

Have you discussed this with an attorney in your area yet? That is what I suggest you do.

 

[Hacked1]

It was set up last month. Im chatting with an attorney right now.

 

[quincy]

It was set up last month. Im chatting with an attorney right now.

Good.

It might be important to note that “chats” with online attorneys are not going to accomplish as much as actually meeting in person with an attorney in your area and hiring him/her to do the work and research necessary to resolve your problem.

Good luck.