San Antonio, TX – The sense of security one expects from entrusting their money to a bank is being shaken for many USAA members. A rising tide of complaints is emerging as customers report significant financial losses due to bank fraud, coupled with dissatisfaction over USAA’s response to their claims.
Following reports highlighting a nationwide surge in bank fraud, an increasing number of USAA members have come forward to share their distressing experiences. These customers express a growing disillusionment with the institution, traditionally lauded for serving military members and their families.
“USAA is no longer what they used to be,” declares Rachel Howard, echoing the sentiment of many disgruntled members. Roberto Rangel adds, “I just don’t have very much trust in them anymore,” highlighting a significant erosion of faith in the financial institution.
The frustration is palpable among USAA members, with Tiffany Tienda expressing the emotional toll, “it’s just a nightmare that you’d be treated that way and disrespected.” These voices represent a larger group of individuals who allege not only financial losses but also a profound loss of trust in USAA, claiming the bank has often blamed them for the fraudulent activities.
Mike Hand recounts his experience, stating, “They didn’t even look at it they all said it’s my fault,” while Curtis Murrah from Georgia, a loyal USAA member of 28 years, questions, “How do you not see fraud?” Murrah, who held multiple policies with USAA, including homeowners, life, and car insurance, was a staunch advocate until a rude awakening.
Murrah’s ordeal began when his wife was unable to pay their mortgage due to insufficient funds. Upon investigating, Curtis discovered unauthorized activity in his accounts – a series of suspicious deposits and withdrawals. He describes the sophisticated nature of the fraud, “It was like they were playing mind games,” explaining how fraudsters would deposit and immediately withdraw near-identical sums, such as “$9,800 then turn right around and withdraw $9,800,” in an apparent attempt to evade detection.
More than a dozen USAA members have reported similar experiences, reaching out after initial reports of bank fraud surfaced. Charles Kidwell observes a sense of resignation among members, stating, “It seems everybody is afraid to go against USAA.”
A video call was organized, bringing together members willing to share their stories publicly, some of whom are part of the 2,700-strong Facebook group “USAA Fraud and Victims.” This online community serves as a platform for members to share their grievances and experiences with alleged fraud and USAA’s handling of these situations.
“It’s emotionally and mentally draining and offensive that they’re so dismissive of the whole situation,” Tienda reiterates, emphasizing the emotional burden placed on victims. Murrah, who promptly contacted USAA to report the suspected fraud, recalls, “I called USAA and I told them there was fraud on the account.”
Despite initiating an investigation at Murrah’s insistence, the outcome left him bewildered. “At the end, they said they didn’t see any fraud,” Murrah recounts, highlighting the bank’s seemingly contradictory stance despite evidence of unusual transactions occurring across different states. Murrah states his personal loss amounted to $14,173.89 across two accounts.
Other members shared similar financial blows: Rangel lost “$9,100,” Tienda approximately “$3,700,” Hand “$2,700,” and Howard upwards of “$7,000,” compounded by additional fees. Shockingly, some members reported USAA demanding repayment for negative balances incurred due to the very fraud they were victim to.
Cruzita Barron questioned the logic of this demand, stating, “Come on now, like how does that make sense. This is stupid honestly, I’m sorry.” Kidwell confirmed having paid back “almost $6,000,” while Rangel resorted to selling personal belongings to mitigate the financial damage and protect his credit score.
USAA’s history includes prior security incidents, notably a check fraud scheme three years prior that led to indictments against 21 individuals for conspiracy to commit bank fraud. Prosecutors alleged that call-center employees exploited their positions to access customer account information over two years, with intended losses estimated at $7 million. USAA stated at the time that affected members were notified and provided with safeguards. An unrelated data breach was also reported in October 2022.
In the same year, the Financial Crimes Enforcement Network (FinCEN) penalized USAA $140 million for inadequacies in its Bank Secrecy Act Program, which allegedly allowed millions in suspicious transactions to go unreported. Further compounding these issues, December 2022 saw the arrest of two Louisiana women linked to the theft of over $1 million from USAA customers.
A review of the Better Business Bureau reveals over 5,800 customer complaints closed against USAA in the past three years, indicating a pattern of customer dissatisfaction. Tienda summarizes the collective sentiment, “They failed in their responsibility to take care of service members and their families.”
USAA declined a request for an on-camera interview, but in a statement, a spokesperson acknowledged that “bank fraud is an unfortunate reality for financial institutions around the world.” The statement further asserted, “USAA has sophisticated fraud monitoring detection processes, along with a multitude of security and education measures in place to protect our members.”
Addressing the growing number of member complaints, USAA stated, “At times, based on the facts, we conclude we need to stand by our initial findings. If we find a mistake has been made, we’re committed to resolving the issue for our members.” The statement concluded, “USAA remains committed to fighting fraud and protecting our members. Fraud cases are unique and can be complex. When assessing a case, we take all available information into account. If the investigation uncovers an opportunity for a different outcome, we strive to provide a quick resolution for the member.”
However, for affected members, these assurances ring hollow. Hand expresses the feeling of being unfairly blamed, “They’re blaming us for, not our mistakes.” Howard’s disappointment is stark, “For them to fail so badly, there are no words.”
Murrah, whose emergency savings were wiped out by the fraud, was forced to take out a loan. Adding insult to injury, USAA reportedly closed his account, a move he found deeply hurtful after decades of loyalty and advocacy for the bank. “It hurt me because I’ve been telling people for years that USAA was good,” he lamented.
Following media intervention, USAA revisited seven cases, resulting in positive outcomes for five members who received full refunds. Barron was refunded $8,500, Rangel $9,100, Kidwell $5,100, Tienda $3,600, and Hand $2,700. Murrah also received his $14,173.89 back, reacting with immense relief and gratitude, “Ohh… This is a blessing,” he exclaimed. “Y’all don’t know how much you helped me. I really, really appreciate it.”
In total, over $43,000 was recovered for USAA members through these interventions. While acknowledging the pervasive nature of bank fraud, USAA reiterated advice for members to remain vigilant and report suspicious activity promptly. The bank emphasized that it would never request sensitive personal information like verification codes or passwords via unsolicited calls or texts, nor would it direct members to download software through such communications.
Problem Solved, in these specific cases, but the broader issue of customer trust and USAA’s fraud handling remains a significant concern for many members.
