Wells Fargo Phantom Account Scandal Widens: Further Digging Reveals 1.4 Million More Fake Accounts

Chris Gaetano
Published Date:
Aug 31, 2017
Wells Fargo

Beleaguered bank Wells Fargo, still reeling from a series of embarrassing scandals, announced that the one that started it all―the creation of millions of fake accounts that charged fees to their customers― is much bigger than originally thought, according to CNN Money. When the scandal first broke, Wells Fargo was found to have created 2.1 million potentially fake bank and credit card accounts, opened with neither the knowledge nor consent of its customers. Internal investigations into the matter has found that there are actually 1.4 million more than originally thought, and of those an additional 60,000 were assessed unnecessary fees, making the new total 190,000. The internal investigation also found that 528,000 customers were enrolled in online bill pay without their authorization. 

This is the latest development in a wave of bad news from the troubled bank. Wells Fargo had also recently been discovered to have signed people up for unnecessary and expensive auto insurance, overcharged small businesses for credit card processing services, and manipulating mortgage rates of home loan borrowers. 

Click here to see more of the latest news from the NYSSCPA.