An Oakland woman lost $12,145 in life savings after a scammer, impersonating a Charles Schwab employee, convinced her that her account was being compromised.
Jazz Powell-Loggins told ABC 7 that the incident began when she received a frantic call from an unknown number. The caller claimed someone was attempting to withdraw funds from her account and that he, as a Charles Schwab representative, was trying to help.
"And it was panic, panic immediately. ‘Hey, some- someone’s trying to sell your money out of your account, and I’m trying to help you. Hey, and by the way, by the way, I’m a representative of Charles Schwab,'" Powell-Loggins recounted.
Overwhelmed by the caller's urgency and loudness, Powell-Loggins hung up to answer a call from her doctor. Within two minutes, she received a notification that her bank account had been emptied via wire transfer.
Powell-Loggins, who is currently out of work on disability and caring for her husband during his cancer battle, stated the stolen funds were intended to ensure her son could graduate college debt-free. She expressed devastation at the loss, compounded by her existing financial and personal struggles.
Charles Schwab denied Powell-Loggins' appeal for compensation, citing that she provided a "verification code to a third party, allowing them to complete the wire." Powell-Loggins maintains she did not provide any information to the scammers and questions why the company is not covering her losses.
"I’ve shown nothing but integrity and hung out with this company. And for them to tell me, we believe you have something to do with it. We’re not giving you back a dime. Good riddance. That was devastating to me," she said.
In a statement, Charles Schwab said, "We sympathize with Ms. Powell-Loggins, whose experience is an unfortunate example of growing imposter fraud… We advise our clients to be cautious, stay vigilant, protect their personal information."
Jasika Bawa, Project Lead for Google’s Chrome Security, suggested to ABC 7 that the phone call might have been a diversionary tactic. During such stressful calls, individuals may miss important security alerts from their financial institutions. Bawa also noted that short PINs can be vulnerable to brute-force attacks, where scammers rapidly guess combinations.
The funds were reportedly transferred to a bank in Ohio. Powell-Loggins has contacted the police and the FBI and plans to pursue arbitration.
