Chime Fraud Attack Strikes As Some Users Report Locked Accounts

Chime’s attempt to combat fraud has caused minor damage: Some users have reported that their accounts have been frozen or shut down, per ProPublica. USA

new bank
The initiative – aimed at preventing the illegal receipt of federal stimulus checks and unemployment insurance – is even coming as it leverages checks to attract new customers, including a $ 1,200 Stimulus Sweepstakes award.

Chime has 13 million accounts

Chime has over 13 million account holders.

Internal intelligence

Chime has taken a three-pronged approach to its anti-fraud effort, ProPublica reported. Fraud investigations have yielded three different results:

Chime admitted to ProPublica – which interviewed 13 current and former anecdotal users – that it made mistakes with some of the respondents. But he also said he acted correctly in other cases within the sample group. Neobank defended the wider impact of its initiative, telling ProPublica that it had raised hundreds of millions of dollars for federal and state services.

Reporting blocked accounts could tarnish Chime’s reputation by sending potential customers to compete

or established. Fear of frozen funds may also prevent some of Chime’s existing customers from using neobank as their main bank, which would deprive the company of opportunities to build loyalty and loyalty.

ProPublica’s research article marks Chime’s second black PR eye this year. Earlier in the year, the neobank agreed to accept the request of the California Department of Economic Protection and Innovation to stop trading itself as a bank. The regulator had filed a lawsuit against Chime for not having a banking license.

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