Feds: Fifth Third Bank opened fake accounts in real customer’s names

NEW YORK — A lawsuit filed by the Consumer Financial Protection Bureau alleges employees of Cincinnati-based Fifth Third Bank opened fake accounts for customers to meet aggressive sales targets, according to an Associated Press report.

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Federal investigators allege the bank knew employees were opening fake accounts since at least 2008 and up to until 2016, the same year Wells Fargo admitted to a similar practice, the AP reports. Wells Fargo was later forced to pay billions of dollars in fines due to the practices.

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The CFPB lawsuit alleges some of the accounts created were funded, meaning bank employees moved money from a customer’s existing account to their new one, without their consent, the AP reports. The bank’s sales program required the accounts to be funded, so once the employee was credited for the sale, the money was moved back, the CFPB alleges.

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Moving money without a customer’s consent is a violation of the Truth in Savings Act.

In a statement, Fifth Third said the CFPB's lawsuit was unnecessary and the bank had already investigated the allegations. Fifth Third said their investigation found 1,100 accounts were opened fraudulently out of 10 million existing accounts and the amount of financial damage caused by these employees was less than $30,000, the AP reports.

“When a federal court examines the evidence, we believe it will agree with Fifth Third that this is a limited and historical event,” said Susan Zaunbrecher, chief legal officer of the bank, in a statement.