A Chicago businessman, Jeff Benach, is accusing JPMorgan Chase of failing to protect him from a fraudulent scheme that drained $40,000 from his business account.
The Ghost Merchant Strikes
Benach hired a Canadian company to create some renderings for his housing development business. He wasn’t happy with the results but offered to pay for the work. However, he never heard back from the company. Then, a mysterious Canadian “ghost merchant” with a fake business name started making huge charges on Benach’s Chase company credit card.
Chase Denies Reimbursement
Benach filed a claim for reimbursement, but Chase denied it. He even hired a lawyer, but that didn’t help. The fraudulent company had apparently doctored emails and created fake documents to make it look like Benach authorized the transactions. Chase told Benach that the transactions were valid and wouldn’t be reversed.
Media Pressure Leads to Resolution
Feeling desperate, Benach reached out to the media for help. After ABC News contacted Chase, the bank reversed its decision and issued a statement. They admitted that they had initially validated the transactions based on inconsistent information from the merchant and forged documentation. Chase apologized for the delay and said they were glad to resolve the issue in Benach’s favor.
This incident highlights the importance of being vigilant about fraudulent activity and the potential challenges in getting banks to reverse unauthorized transactions. It also shows how media attention can sometimes be a powerful tool for holding companies accountable.
