5,300 Wells Fargo employees fired for creating over 2 million phony accounts

On Thursday, federal regulators said Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts -- without their customers knowing it -- since 2011.

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.
...
The scope of the scandal is shocking. An analysis conducted by a consulting firm hired by Wells Fargo concluded that bank employees opened up over 1.5 million deposit accounts that may not have been authorized, according to the CFPB.

The way it worked was that employees moved funds from customers' existing accounts into newly-created accounts without their knowledge or consent, regulators say. The CFPB described this practice as "widespread" and led to customers being charged for insufficient funds or overdraft fees -- because the money was not in their original accounts.

Link

Wow. This is hard to believe. Employees upping their sales with fake accounts and bank customer's money. 5300 employees, and no auditor noticed all this fake activity for years.

I suppose I really shouldn't be surprised at what banks do to get people's money.

How did the people getting charged fees not notice..

a reply to: roadgravel

I hope they come up with a new incentive program. That one kind of backfired, eh?

Everywhere I have worked (not in banking) folks have figured out ways around these types of incentive programs and eventually get busted. Stop doing them...

originally posted by: roadgravel

On Thursday, federal regulators said Wells Fargo employees secretly created millions of unauthorized bank and credit card accounts -- without their customers knowing it -- since 2011.

The phony accounts earned the bank unwarranted fees and allowed Wells Fargo employees to boost their sales figures and make more money.
...
The scope of the scandal is shocking. An analysis conducted by a consulting firm hired by Wells Fargo concluded that bank employees opened up over 1.5 million deposit accounts that may not have been authorized, according to the CFPB.

The way it worked was that employees moved funds from customers' existing accounts into newly-created accounts without their knowledge or consent, regulators say. The CFPB described this practice as "widespread" and led to customers being charged for insufficient funds or overdraft fees -- because the money was not in their original accounts.

Link

Wow. This is hard to believe. Employees upping their sales with fake accounts and bank customer's money. 5300 employees, and no auditor noticed all this fake activity for years.

I suppose I really shouldn't be surprised at what banks do to get people's money.

This is a result of having corrupt leaders who set their own actions as an example for those whom already have a low sense of values and ethics, just like the Obama administration and the administrations before that. Since the first Obama elections and the bailouts which rewarded these banks already illegal and shady practices, which the banks took to a whole new level with the mortgage scams. Once people get a taste of taking shortcuts, even illegal ones that offer quick rewards, they just can't stop, and keep filling their minds with new ways to rip people off. A sad state this world is in right now. Judgement is coming.

a reply to: Misterlondon

I would imagine the number of customer complaints led to the consultants doing an investigation.

Too bad those high dollar top employees couldn't figure it out. Not surprised though.

a reply to: roadgravel

Oh, I think it was directed from the top. Sure, they'll blame "Employees" for this but I bet dollars to Doughnuts some CEO someplace let it happen if not made it happen.

Who profited from these fees?

The Bank, that's who
Who'll take the rap? Some employees who were allowed to continue the practice...

a reply to: roadgravel

Bankster criminals.. no surprise there. They would willingly ruin the global economy just to line their pockets and keep up with their lavish greed-driven lifestyles.

But white collar crime goes unpunished.. up is down, slavery is freedom, war is peace!

a reply to: SLAYER69

That might well be the case. I bet some at the top got bonus money of the activity.

a reply to: SLAYER69

And since it is a publicly-traded company, someone could go to jail as a result. Obviously the DOJ won't go after 5000 employees, but if they can find the source(s)...

What do they expect?

These idiot companies hold their employees responsible for getting customers to sign up for these programs.

For example target, Macy's, lowes, Sears, every bank etc. Evertime someone asks you to sign up for something and you decline that person making minimum wage is getting in trouble for it and may lose their job.

I'm not schocked at all that employees were forced to fake it.

All I can say is Jesus, Mary and Jofus! 5300...that's a whole townload of crooks.

Somehow, their stock ticker has barely budged.

But hey let's regulate these guys less so this is even harder to find!

Well, we made it past the first half of the first page, at least, before an left/right ideologue chimed in.

a reply to: IgnoranceIsntBlisss
Guess you missed the obama post

a reply to: IgnoranceIsntBlisss

At a Market Cap of 251 Billion, 185 million dollar fine is not even a drop in the bucket. Investors will see it has getting rid of some naughty employees.

originally posted by: Misterlondon
How did the people getting charged fees not notice..

That's the one bad thing about going electronic. Back in the old days I used to keep track of a ledger in my check book. Now I trust the bank and I seriously only check my balance maybe once a week. It's a very bad habit, I know.

But this also doesn't surprise me. Back in college I worked for MCI...they would always pull that stupid # and then you were expected to compete with the "top earners". I was always like, "they are #ing scamming", lol.

a reply to: SLAYER69

I would bet your right.
You can't tell me 5300 people came up with this idea, all on their own. Somebody somewhere gave them the idea/permission.


damn criminals.

a reply to: Sremmos80

I did, although if you look closely it also calls out Bush.

a reply to: chiefsmom

I doubt it was anyone high up in the food chain. They're not dumb enough to risk their jobs so that employees can meet their goals. You'd be surprised how quickly 5000 worker bees chatter among themselves when it comes to hitting their incentives to make some beer money at the end of the month.