Greg's Corner

Another Scam, Another Bank That Won’t Help

By Greg Collier

For many, a bank is more than just a place to store money, it’s a safeguard. A financial institution should stand as a final layer of protection when something goes terribly wrong. But when scammers strike, these same banks often turn their backs, leaving victims not only financially devastated but utterly abandoned by the institutions they trusted the most.

A couple in Virginia Beach learned this lesson the hard way after discovering more than $15,000 had vanished from their Bank of America account. The loss wasn’t the result of misplaced trust or a momentary lapse in judgment. It was a sophisticated scam, likely involving some form of phone compromise, that drained their account instantly.

The warning signs were there. The couple received a barrage of 700 text messages in the middle of the night, a tactic known as smishing or SMS flooding, designed to distract victims while fraudsters bypass security measures. By morning, the money was gone. In the immediate panic, they did everything right. They contacted the bank. They filed a fraud report. They sought expert opinions on what could have happened. And yet, after a month-long ‘investigation’, the response from Bank of America was clear. No reimbursement.

Their reasoning? The bank determined that the transaction had been ‘validated’ with an authorization code sent to a registered phone number on the account. That same device, they claimed, had been used for previous transactions. In other words, from their perspective, the transfer appeared legitimate, and as a result, the victims were out of luck.

What’s particularly infuriating about cases like these is the rigidity of the bank’s stance. Even with mounting evidence that the couple had been scammed, including police involvement and a clear trail showing where the money had been transferred, the response was a resounding no. Banks often tout their fraud protection policies, reassuring customers that they prioritize security. Yet, when these very same customers become victims, the banks default to denial, hiding behind vague policies that shift the blame back onto those they’re supposed to protect.

It’s a familiar pattern. Financial institutions are quick to take action when a fraudulent credit card charge appears, often reversing the transaction with little fuss. But when it comes to wire transfers, which move money directly from an account, the response is far more reluctant. Banks frequently claim that once a transaction is authorized, recovery is difficult, if not impossible. Meanwhile, fraudsters exploit these weak points with increasing sophistication, adapting their tactics faster than security measures can keep up.

The consequences extend beyond the immediate financial loss. Victims are left battling an institution that should be on their side, forced to fight an uphill battle while knowing that the odds of ever recovering their stolen money are slim. They are told, in not-so-many words, that they must have somehow been responsible, even when all signs point to the contrary.

For a couple who had been loyal customers for over two decades, the betrayal stings even more. A bank that happily acknowledges their ‘preferred’ status when things are going well is suddenly indifferent when they need actual support. Their frustration is not just about the money, it’s about the realization that, when it truly mattered, their bank wasn’t there for them.

This isn’t an isolated incident. It’s part of a growing trend where banks fail to provide meaningful protection against evolving scams. Customers are expected to navigate an increasingly complex web of digital threats on their own, and when something goes wrong, they are left holding the bill.

As financial fraud becomes more sophisticated, banks must do more than simply shrug and point to policy fine print. They must take responsibility, improve their fraud detection methods, and most importantly, stand by their customers when they need help the most. Until then, victims of scams will continue to find themselves abandoned by the very institutions that promised to protect them.