CARLSBAD, Calif. (KGTV) — A Bank of America customer says he has been refunded thousands of dollars that a suspected fraudster drained from his account in the middle of the night during a SIM-swapping attack.
“Retrieving the money was a huge win for us and we really appreciated your help,” said Justin Chan in an interview with Team 10.
Last year, Team 10 reported that Carlsbad police were investigating after a suspected fraudster was able to drain $38,000 from Chan’s bank account by taking over his phone number in a SIM-swapping attack.
The hacker, Chan said, convinced Xfinity Mobile to transfer his cellphone number to a new device last September. The fraudster was able to change Chan’s passwords after getting his two-factor authentication codes during a three-hour period in the middle of the night.
“It was very fast," he said.
Three wire transfers totaling $38,000 were made, draining the joint bank account Chan uses with his sister to pay for their elderly mother’s expenses.
The first transfer of $20,000 went to a Wells Fargo account.
Team 10 learned the recipient’s name matched the identity of a Sacramento resident, who is a convicted felon and served time for fraud, according to court records.
The other two wire transfers of $15,000 and $3,000 went to Chan's Robinhood account.
“They transferred $18,000 from my Bank of America to my Robinhood, and once they did that, they were able to transfer that money to their personal debit card via Robinhood,” Chan said.
Watch: Bank of America customer out $38K after getting SIM swapped
Bank of America initially closed its investigation on Chan’s fraud claim but reopened it after we got involved.
“They gave us a lot of trouble. It wasn't until… when you stepped in, you were able to contact them, that some actions could be taken,” Chan said.
In January, Chan provided Bank of America with a letter from the parent company of Xfinity Mobile stating his account “was likely accessed by a third party as a result of fraudulent activity.”
But the bank still wouldn’t give him his money back.
Team 10 followed up again on Jan. 27, asking why Chan hadn’t been given a refund. The bank told us it was reviewing the case.
We continued to press the bank in February, and Chan finally got a partial refund of $20,000.
“Me and my sister were completely elated,” Chan said.
But the siblings’ fight was far from over.
Chan said Bank of America refused to refund the remaining $15,000 and $3,000 wire transfers that went to Robinhood.
Team 10 contacted Robinhood in February and asked if it would refund Chan. A spokesperson initially wouldn’t say.
“They explained that there was nothing they could do, and they closed that case,” Chan said.
Team 10 followed up again just over a week later, pointing out Robinhood’s website has a security guarantee that states, “If eligible, we’ll reimburse losses due to unauthorized activity.”
'A huge win for us'
Suddenly, Chan had the remaining $18,000 back.
“Retrieving the money was a huge win for us, and we really appreciated your help,” Chan said.
Robinhood said in a statement it provides tools, education and technology to help protect its customers from threats.
"In cases where a customer is impacted by a SIM swap, our team conducts a thorough investigation and works directly with them to assess eligibility for reimbursement,” a Robinhood spokesperson said.
The company added it encourages customers to add safeguards to their phone accounts to prevent SIM swapping.
In Chan’s case, he’s added a PIN to his cellular account so his number can’t be transferred without that code.
He left Xfinity Mobile for another carrier and plans to close his Bank of America account and instead go to a credit union.
“Big banks are big banks for a reason, but they don't always protect you. They don't always treat you like the customer that you should be treated as,” he said.
Bank of America and Carlsbad police didn’t return Team 10's requests for comment.
