A Nassau County resident has filed a lawsuit, accusing Bank of America of failing to protect his account from fraudulent electronic fund transfers (EFTs), resulting in a loss of $10,000.
Theodore Allen, age 77, alleges negligence and breach of contract after falling victim to an online scam. According to the complaint, Allen received a message on September 24, 2024, about renewing his McAfee antivirus subscription. He subsequently engaged in a phone conversation with someone who claimed to be assisting with the renewal process. During this interaction, Allen was persuaded to allow remote access to his computer and authorized two payments: one for $320.23 and another for $100. However, the latter amount was altered to $10,000 without his consent. Despite realizing the error immediately and contacting Bank of America’s fraud department that night, he was advised to report it at a branch the following day.
Upon visiting the Southampton branch on September 25, Allen explained the situation to bank representative Cody Dilworth. Dilworth assured him that measures would be taken to recover the funds and freeze his account while transferring his remaining balance to a new account. Despite these assurances and multiple follow-ups with Bank of America’s fraud department over three months, Allen received notice that the stolen amount could not be recovered.
Allen’s lawsuit claims that Bank of America violated several consumer protection laws under the Electronic Fund Transfer Act (EFTA) and Regulation E by failing to conduct timely investigations or reimburse unauthorized transactions as required by law. He also alleges that the bank’s security procedures were inadequate compared to industry standards, lacking effective monitoring tools such as text alerts or emails for suspicious activities.
The plaintiff seeks injunctive relief under New York’s Executive Law Section 63(12), which allows for action against businesses engaging in repeated fraudulent practices within the state. He requests full restitution for himself and similarly affected customers over six years whose claims were denied by Bank of America due to alleged negligence in handling unauthorized EFTs.
The plaintiff is represented by attorney George Bassias of The Bassias Law Firm PLLC. The case was filed in the United States District Court for the Eastern District of New York under Case ID 2:25-cv-04540.