![]() This erroneous information should have raised red flags at Wells Fargo before the account was created, experts say. Patterson suffered no direct financial loss. Other information - date of birth, email address and driver’s license details - were wrong. Thousands of dollars flowed through the account before it was shut. But as often happens in synthetic identity fraud, only some of the personal information used to open Patterson’s unauthorized Wells Fargo account was correct - his name, address and Social Security number. Patterson has never been a Wells Fargo customer and says he has never given the bank access to his personal data.īanking regulations require financial institutions to verify customers’ identities before they open accounts to prevent fraud and money laundering. Patterson’s case differs from the previous unauthorized accounts mess at Wells Fargo in one important way: those involved existing customers who had shared their personal information with the bank. ![]() Last December, Wells Fargo agreed to pay $3.7 billion to settle Consumer Financial Protection Bureau allegations of consumer abuses involving 16 million accounts. Amid the scandals, the Federal Reserve Board, the nation’s top financial regulator, took the extraordinary step of capping Wells Fargo’s asset size. Those woes caused the ouster of John Stumpf, the chief executive of the bank at the time.Īdditional improprieties and systems failures have emerged at Wells Fargo, the nation’s fourth largest bank, requiring it to pay billions in fines and penalties to regulators. The bank settled allegations that it illegally repossessed military members’ cars, and it was found to have charged car owners for insurance they didn’t need and paused borrowers’ home loan payments without their approval during Covid. In 2016, Wells Fargo was found to have opened millions of unauthorized accounts for existing customers to meet sales goals. ![]() Other consumers, in public complaints to regulators, have detailed similarly mysterious Wells Fargo bank accounts, raising fresh questions, experts say, about compliance and risk management at a bank that has been rocked by scandals in recent years. ![]()
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