Authentication and lost money

Status
Not open for further replies.
Z

zaob

New Member
Jurisdiction
New York
Dear person, I opened a 6 months CD in a USA bank while residing abroad. I'm US citizen but residing abroad due to family reasons. When I tried to access my CD and move my funds to checking I wasn't able to do so because I don't hold a valid US phone number and can't receive an authentication code. I was able to login to my account and provide all other identification requirements, email, pin etc. After complaining to a 3rd party I was able offered by the bank a way to authenticate myself from abroad through notarization. However the process took over 1.5 months while my funds were frozen at a matured CD with near zero rate. The original CD rate was 4.8%. The bank refuses to reimburse me even though it was basically a trap, since the authentication wasn't required when I originally opened the CD. In addition there was over $100 in notarization and mail fees. Overall I lost some $1600. Can you advise me how to take the bank to court? What path is best. In such a case can the bank close my existing accounts? Thanks
 
adjusterjack said:
Don't waste your time or your money. You won't win.

When you bought the CD you made several account holder and purchase agreements, any one or more of which gave the bank the consent to authenticate you in the manner of their choosing.

Go online to the bank's website and read them all.
Click to expand...
Thank you for your reply. The bank can authenticate me however they want. Yet the authentication was required only on the way out, not on the way in (of the money). I was not made aware of this caveat at the time I opened the CD. Many have faced similar grievances. At the consulate of the country where I currently reside, I was told they receive countless calls on behalf of this bank due to it's misinformed authentication policies. I believe my case can serve for class action.
 
zaob said:
Thank you for your reply. The bank can authenticate me however they want. Yet the authentication was required only on the way out, not on the way in (of the money). I was not made aware of this caveat at the time I opened the CD. Many have faced similar grievances. At the consulate of the country where I currently reside, I was told they receive countless calls on behalf of this bank due to it's misinformed authentication policies. I believe my case can serve for class action.
Click to expand...
In addition the bank responded only after getting notified of my complaint through a 3rd party, and even then kept dragging the case for weeks. It doesn't seem like a legit conduction on their behalf.

Thanks again for considering my question.
 
The authentication process is to make sure that somebody, who isn't you, doesn't take your money.

The bank did nothing wrong to you, or anybody else who was unable to comply with the authentication requirements.
 
It's a very good bet that you wouldn't that lawsuit, and even if you could it would likely cost you more to do it than you'd win. For example, your travel costs to come to the U.S. for the trial (if the case made it that far) and lodging costs while here are not costs that get added to your judgment.

The unfortunate reality that hacking and identity theft attempts, particularly by groups outside the U.S., occur many each day in the U.S. That's the reason why the banks require getting an authorization code before approving the transaction, though some do allow you to get the code via e-mail instead. They have to take all reasonable measures to protect their customers' accounts. If they don't, they open themselves up to massive liability, as demonstrated by some class action lawsuits and government sanctions taken against companies who were vigilant enough. The bank very likely did send you some kind of message about the coming requirement of authentication, but it's possible you missed it. Even it didn't, it's not responsible for the trouble and expense you had getting the notarization you sought. It doesn't have any control over that.

The law in the U.S. is that a bank can close your account and cease doing business with you at any time so long as the reason for doing it isn't one of the few reasons the law prohibits (like your race, sex, etc). Banks, however, can't change the terms of the loans the customer has or lower the rate of interest on investments already purchased (like a fixed rate CD) just because the account is terminated, whether by the bank or by the customer.
 
Tax Counsel said:
It's a very good bet that you wouldn't that lawsuit, and even if you could it would likely cost you more to do it than you'd win. For example, your travel costs to come to the U.S. for the trial (if the case made it that far) and lodging costs while here are not costs that get added to your judgment.

The unfortunate reality that hacking and identity theft attempts, particularly by groups outside the U.S., occur many each day in the U.S. That's the reason why the banks require getting an authorization code before approving the transaction, though some do allow you to get the code via e-mail instead. They have to take all reasonable measures to protect their customers' accounts. If they don't, they open themselves up to massive liability, as demonstrated by some class action lawsuits and government sanctions taken against companies who were vigilant enough. The bank very likely did send you some kind of message about the coming requirement of authentication, but it's possible you missed it. Even it didn't, it's not responsible for the trouble and expense you had getting the notarization you sought. It doesn't have any control over that.

The law in the U.S. is that a bank can close your account and cease doing business with you at any time so long as the reason for doing it isn't one of the few reasons the law prohibits (like your race, sex, etc). Banks, however, can't change the terms of the loans the customer has or lower the rate of interest on investments already purchased (like a fixed rate CD) just because the account is terminated, whether by the bank or by the customer.
Click to expand...
The point I'm trying to make is not about the fact the bank has it's authentication procedures to prevent identity and theft crimes. It's about the fact that I was able to open a CD using no authentication other than logging into my account, but when I tried to move the same funds of the matured CD back to my checking I was required to be authenticated via a code to a USA phone number. It's like I would enter Russia with my passport and visa, but on the way out Russia would add an authentication requirement, and meanwhile put me in some detention for nearly two months, till they are inclined to let me know of a simple procedure to authenticate myself.
 
That's a good analogy. Russia would easily invite you in as a tourist but, when you left, they would want to make sure you weren't leaving with a list of locations of their nuclear weapons.

In other words, low security risk buying the CD, greater security risk redeeming the money.

Anyway, bottom line, as TC patiently explained, the bank people have done nothing wrong to you.

Sue, if you like, and find out for yourself.
 
zaob said:
The point I'm trying to make is not about the fact the bank has it's authentication procedures to prevent identity and theft crimes. It's about the fact that I was able to open a CD using no authentication other than logging into my account, but when I tried to move the same funds of the matured CD back to my checking I was required to be authenticated via a code to a USA phone number.
Click to expand...
Your argument is a little illogical. Identity theft and bank fraud doesn't much happen when people put money into any type of investment account (i.e.. CD, brokerage, savings). The theft happens when the money is taken out by someone that is not you. So, it should be no surprise that institutions have stricter requirements to take money out or move it than putting it in.

zaob said:
When I tried to access my CD and move my funds to checking I wasn't able to do so because I don't hold a valid US phone number and can't receive an authentication code.
Click to expand...
Didn't you use your cell number (for messaging) or your email address to open the account? So, the bank would know to use those two means of sending you the authentication code.

Whenever I am asked how I want to receive the code, I can either use messaging or email and that is how the bank sends it to me. You do have an email address where you are living, right? Did you ever ask that they use your email address?
 
zaob said:
I was not made aware of this caveat at the time I opened the CD.
Click to expand...

At the time you opened the account, did you thoroughly read the account holder agreement? Have you read the agreement now? If not, why not?


zaob said:
I believe my case can serve for class action.
Click to expand...

OK...

You're more than welcome to try and find a lawyer willing to file a class action suit. I doubt you'll have any success, but you certainly can try. You're also free to file a small claims suit, which will require you to travel to the court where the case is filed.
 
welkin said:
Your argument is a little illogical. Identity theft and bank fraud doesn't much happen when people put money into any type of investment account (i.e.. CD, brokerage, savings). The theft happens when the money is taken out by someone that is not you. So, it should be no surprise that institutions have stricter requirements to take money out or move it than putting it in.


Didn't you use your cell number (for messaging) or your email address to open the account? So, the bank would know to use those two means of sending you the authentication code.

Whenever I am asked how I want to receive the code, I can either use messaging or email and that is how the bank sends it to me. You do have an email address where you are living, right? Did you ever ask that they use your email address?
Click to expand...
I have access to all identification criteria offered by Bank of America, including primary and secondary emails, credit card and pin, usb security key, online access to my account, everything, other than a US phone number since I reside abroad. I tried to register a foreign number when I visited the USA but was told Bank of America doesn't offer an online interface for foreign numbers.

I can't really see what is logical about a bank allowing its abroad residing customers to open a CD account through the online interface, but doesn't allow these same customers access to the matured CD, renew the CD or move the money within the same account to the checking account. As I've mentioned I'm not the only customer who's been going through this ordeal. The consulate where I reside mentioned numerous calls regarding the hassle faced because of authentication policies of Bank of America. This in itself and the fact it took Bank of America a month and half to respond with a simple solution of authentication through notarization, suggests to me this may well be an intentional scheme, whereby the bank holds the money of people for an extended length of time in zero rate CDs. Why doesn't the bank then simply require a full authentication procedure when opening a CD to prevent such happenings?
 
There is no legal issue that this forum will be able to help you with.
 
zaob said:
Why doesn't the bank then simply require a full authentication procedure when opening a CD to prevent such happenings?
Click to expand...

Why don't you ask bank officials questions or seek their explanations for anything that puzzles you?

Mediocre, human beings are unable to properly address any issues the financial institution is responsible for knowing.
 
I repeatedly asked to speak with managers (bank officials?). Only after complaining to a 3rd party was I referred to a resolution specialist, who was very unresponsive to say the least.
 
zaob said:
I repeatedly asked to speak with managers (bank officials?). Only after complaining to a 3rd party was I referred to a resolution specialist, who was very unresponsive to say the least.
Click to expand...
If you have a U.S. based mobile number and can receive SMS internationally, you can continue to use Secured Transfer as you travel. However, if a U.S. based mobile number is not available, you may choose to use a USB security key. We do not support international phone numbers at this time.


What is a USB security key?
A USB security key plugs into your computer's USB port and functions as an extra layer of security that's used in Online Banking to increase limits for certain transfer types.

Why do I need a USB security key?
USB security keys are an optional alternative to SMS-based one-time security codes if you do not have access to a U.S. mobile phone number or can't receive texts to your phone.

Where can I get a USB security key?
USB security keys can be purchased at many online and trusted tech retailers and typically cost between $18-$50. Just search for 'USB security key' and make sure the key you choose is FIDO-2 certified.
Click to expand...
That is quoted from the BOA website.

Have you looked into a USB security key?
 
welkin said:
That is quoted from the BOA website.

Have you looked into a USB security key?
Click to expand...
I do have a usb security key that I have used in the past on Bank of America websites for certain transfers and payments. However the representative wasn't able to help me move my funds from the locked CD using my usb security key.
 
zaob said:
I do have a usb security key that I have used in the past on Bank of America websites for certain transfers and payments. However the representative wasn't able to help me move my funds from the locked CD using my usb security key.
Click to expand...
Then by BOA's own policies and their terms of service is in breach of their contract. You should send them a certified letter saying as much.
 
That someone without a USA phone number can access their account using a USB security key from outside the US.
zaob said:
However the representative wasn't able to help me move my funds from the locked CD using my usb security key.
Click to expand...
 
I'm wondering why the OP can't get get a Google Voice number with a US based number.
 
Status
Not open for further replies.

Share this page

Get a free case review from a lawyer
Back
Top