5,300 Wells Fargo Employees Fired After Caught Creating Two Million Fake Accounts Using Customer Information

Image result for wells fargoThe Consumer Financial Protection Bureau fined Wells Fargo $100 million when a third-party consulting firm discovered that more than five thousand of their employees had opened 1.5 million deposit and 565,000 credit card accounts using customer credentials to boost their sales and earn compensation. Without the authorization of their customers, these employees would transfer funds from customer's real accounts to the fake new ones, draining the customer's real bank account in the process and leaving them with overdraft fees. Many of these employees were also caught issuing and activating debit cards, creating PIN numbers for these accounts, and signing up for online banking programs using fake email addresses using customer information, all without the customer's consent. In response, Wells Fargo issued refunds for fees to any affected customers to the tune of $2.6 million, with an average of about $25 per customer. In addition to the fine from the CFPB and customer refunds, Wells Fargo has to pay the City and County of Los Angeles $50 million, and the Office of the Comptroller of the Currency $35 million. In response to their employees' actions, Wells Fargo released a statement on their website electing to impose "enhanced team-member training," further monitoring of employee activities and behavior, and a refocus on performance goals based on customer satisfaction rather than sales figures.

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