This App Is Now Draining Money From Bank Customers

January 9, 2024

An app is now draining money from bank customers after scammers have found a loophole to connect directly to funded accounts.

A retired couple lost their entire life savings after falling prey to a new scheme involving Venmo.

Alan and Aviva Sturm said hackers had been draining their account for months and they had no clue it was happening, reports The-Sun.

They’ve reached out to their bank and Venmo but haven’t had any luck getting a reimbursement.

“They took $1,500 a week out of our account”, Alan, 74, told ABC affiliate WPBF.

“We found out when we paid the rent and it bounced.”

The couple said their bank account information was used to create a Venmo account.

Venmo allows users to send small payments to one another, usually friends, family, or co-workers – for small purchases such as a dinner or tip.

The Sturms said money from their account was transferred by Venmo to someone else, however, the couple has never used the service before.

“I don’t even know what Venmo is,” Alan told the outlet. “They said it was like PayPal and I don’t know what that is either.”

The transactions started out small, according to the couple’s bank statements.

At first, there were transfers of 96 cents, and then another eight cents in March 2023.

But after those went through, a series of weekly 1,500 transfers happened until the account had been depleted.

In total, the scammers made off with $19,500.

“And unfortunately we do not have a lot of money so this really hit us hard,” said Aviva.

The Sturms had to drop their secondary medical coverage and move from their two-bedroom apartment to a smaller one that was still within their assisted living facility in Boynton Beach, Florida.

“I can’t get medicine,” said Alan. “I can’t afford it, and I have epilepsy and we both have bad hearts.”

In a statement, Bank of America said “In general, if a transaction is unauthorized, the customer will be reimbursed. We will also work on our customer’s behalf to attempt recovery of the money even if we determine that the transaction was authorized.

“In this case, the merchant (Venmo) provided documentation that the client had authorized the transactions and we were unable to recover the money for the customer.”

However, the couple said they didn’t authorize the transfers because they weren’t aware of them at all.

“Venmo said ‘call the bank,'” said Aviva. “The bank said ‘call Venmo.'”

“When we were contacted about the situation, we quickly launched an internal investigation,” Venmo told WPBF.

“This process is underway and we’re working to determine solutions to assist the customers.”

Alan and Aviva said they reported the theft to the Palm Beach County Sheriff’s Office and the Florida Attorney General.

“I’m still afraid we’re going to be out in the streets,” said Alan.

A detective told the Sturms that he was able to trace the IP address receiving the Venmo transfers to a computer in New York, however, it ended up being a dead end.

The case is still under investigation, said the sheriff’s office.

Also Read: A US Bank is Now Denying Customers Access to Money

Other Banking News Today

A massive bank now lays off a whopping 5000 staff members globally in efforts to drive efficiency and slash costs.

Barclays said it has axed around 5,000 jobs globally during 2023 to “simplify and reshape the business”, with most of the roles affected in the technology side of the business.

The bank said the jobs were “removed” as part of its ongoing efficiency programme. The majority jobs affected are within its support arm, Barclays Execution Services, which provides technological and operation services to businesses.

Barclays said the majority of individuals impacted by the job losses worked in the bank’s support and UK chief operating officer functions as “management layers are reduced” and the group “improves its technology and automation capabilities”.

It comes after the trade union Unite said last year that Barclays had cut 900 jobs in its UK business.

In November, Unite said the jobs would go across a number of back-office divisions and branded the decision to axe staff in the lead-up to Christmas “disgraceful”.

Barclays has cut costs in recent years, and has already seen jobs go across its retail and investment banking businesses.

A Barclays spokesperson said: “Barclays removed approximately 5,000 headcount globally through 2023 as part of its ongoing efficiency programme designed to simplify and reshape the business, improve service, and deliver higher returns. The Group is also creating capacity to selectively hire front office roles in key businesses.

“The majority of the individuals impacted are within Barclays’ support function, Barclays Execution Services ‘BX’, and the Barclays UK chief operating officer function, as management layers are reduced and the group improves its technology and automation capabilities.

“We are supporting impacted colleagues with training, advice and outplacement services, depending on their location.

“The headcount reduction programme forms part of the potential material structural cost action charge announced at Q3 2023 results, to be taken in Q4 2023.”

Also Read: Wells Fargo is Now Freezing Bank Accounts in New Scandal

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