Wells Fargo Reveals Number of Fake Credit Card Accounts

October 17, 2016, Written By Lynn Oldshue
VALENCIA CA/USA - AUGUST 17 2014. Wells Fargo bank exterior. Wells Fargo & Company is an American multinational banking and financial services holding company headquartered in San Francisco California.

Wells Fargo released the preliminary data for its investigation on the fake accounts scandal from 2011 to 2015. The bank and auditors at Pricewaterhouse Coopers found a total of 565,000 possible fraudulent credit card accounts, in addition to the 1.5 million fake checking accounts already suspected.

Wells Fargo has has tracked all but 1,000 of the affected cardholders. 330,000 fraudulent cards have been closed, and of the remaining 234,000 identified accounts, 192,000 were never activated. 42,000 accounts were open and activated, but Wells Fargo said it was unsure whether the activations came from customers or employees.

New accounts have declined since the scandal broke out. Checking account openings are down 25% from a year ago, and credit card openings have fallen 20%. The company recently hired a new CEO, Timothy Sloan, and his goal is to regain customers’ trust in the coming months.

It is too early to say how much of a financial impact those declines have had on Wells Fargo’s earnings, but the company already faces $185 million in fines for opening fake accounts in customers’ names.

The information contained within this article was accurate as of October 17, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.