Money transfer, virtual currency, or money service -- Fraud or scam -- Complaint #17916534

Complaint Overview

Complaint ID: 17916534

Company: Chime Financial INC

Product: Money transfer, virtual currency, or money service

Sub-Product: Domestic (US) money transfer

Issue: Fraud or scam

State: Nevada

ZIP Code: 89107

Date Received: 2025-11-25T12:00:00-05:00

Date Sent to Company: 2025-11-25T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

Complaint Regarding Chimes Failure to Investigate Fraud, Failure to Comply With Regulation E, and Breach of Fiduciary Duties XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Member since XXXX Account ending in : XXXX Chime Financial , Inc. Attn : XXXX XXXX XXXX Re : Formal Complaint Failure to Investigate Fraud, Regulation E Violations, XXXX XXXX XXXX, and Member Safety Concerns To Whom It May Concern : I submit this formal complaint regarding Chimes continuing refusal to investigate clear fraudulent activity involving another Chime account holder who obtained funds from me under false pretenses, in violation of Chimes Member Guidelines, U.S. banking law, and applicable consumer-protection regulations. Despite multiple notifications, Chime has failed to conduct a proper investigation, failed to follow Regulation E, and failed to take any meaningful steps to protect its customer. Background On XX/XX/XXXX, I contacted Chime to report that I had been the victim of fraud committed by another Chime account holder who induced me to send funds through deceptive means. I provided clear notice that the transaction involved obtaining money under a false pretense, which constitutes fraud and triggers Chimes statutory investigatory obligations. On XX/XX/XXXX, I spoke with XXXX from Chime Support located in the XXXX. Her handling of the matter was dismissive and inconsistent with required fraud-investigation procedures. Similarly, on last Thursday, I spoke with a representative named XXXX via Chat feature, who refused to answer whether she was located in the United States and similarly declined to take any investigative action or escalate the matter appropriately. Legal Standards Under the Electronic Fund Transfer Act ( EFTA ), 15 U.S.C. 1693 et seq., and its implementing regulation, Regulation E ( 12 C.F.R. 1005.11 ), once a consumer provides notice of an unauthorized or fraudulent electronic fund transfer, a financial institution must : Promptly initiate an investigation ; Conduct a reasonable, good-faith review of the consumers claim ; Obtain and evaluate evidence, including merchant or counterparty information ; Determine whether an error occurred ; Correct any identified error ; Provide a written explanation of findings ; Issue provisional credit within the statutory timeframe when required. Chimes failure to engage in any of these mandatory steps constitutes prima facie non-compliance with EFTA and Regulation E. Furthermore, PayPaloperating both as a bank-level financial institution and a XXXX provideroffers aggressive, structured, and consumer-protective mediation services, including mandatory merchant outreach, transaction holds, case reviews, and detailed documentation. This comparison demonstrates that Chimes response falls substantially below industry standard, particularly for institutions operating in the XXXX and quasi-banking space. Chime is required to act as a responsible steward of member funds and owes a fiduciary-like duty to maintain reasonable security, enforce its XXXX XXXX, and protect consumers from fraud. XXXX and Risk-Management Concerns The fraudsters account historywhich you can review internallyshows unusual activity, including exclusively cash-based deposits, a known red-flag indicator under AML and BSA compliance standards. When an internal customer is accused of obtaining funds by false pretenses and their transaction patterns indicate high risk, this requires : Suspicious Activity Report ( SAR ) review Enhanced Due Diligence ( EDD ) Account restrictions, holds, or closure Verification of true beneficial ownership and contact information Chime failed to take any of these steps despite receiving explicit notice of fraud. Chimes Failure to Act To date, Chime has : Failed to open a proper investigation ; Failed to follow Regulation E requirements ; Failed to contact or meaningfully review the account of the alleged fraudster ; Failed to verify the account holders address or identity ; Failed to conduct XXXX XXXX despite indicators of suspicious activity ; Failed to offer any mediation or consumer-protection steps typically employed by comparable institutions ; Failed to protect a customer reporting criminal activity. These failures are systemic and unacceptable. Requested Action I respectfully request that Chime take the following actions immediately : Open a formal Regulation E investigation into the fraudulent transfer. Provide written confirmation of the steps taken, findings, and evidence reviewed. Provisionally credit the disputed funds as required under 12 C.F.R. 1005.11 ( c ) ( 2 ). Conduct a full XXXX assessment of the counterparty account, including unusual cash deposit patterns and allegations of obtaining funds by false pretense. Close the fraudsters account if your review confirms improper activity or identity inconsistencies. Document and communicate whether a XXXX was filed. Provide the name and department of the XXXX XXXX assigned to this case. Conclusion Chimes failure to take appropriate action after multiple notices of fraud violates federal law, internal policy, and industry standards for consumer protection and risk management. I request immediate corrective action and written confirmation of the steps being taken. Thank you for your prompt attention to this matter. XXXX XXXX XXXX I am recently retired from working in Fraud and Collections from a Bank/XXXX card issuer .

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This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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