5300 employees of Wells Fargo have been fired for creating fake accounts since 2011 in order to earn bonuses for hitting sales targets.
- They created 1,534,280 deposit accounts, “mov[ing] funds from customers’ existing accounts into newly-created accounts without their knowledge or consent”
- 565,443 credit card account were opened in customers’ names as well.
Copyright: jetcityimage / 123RF Stock Photo
Employees creating phony PIN numbers and fake email addresses for customers.
Wells Fargo has about 265,000 employees so although the bank is acknowledging they’ve fired 1% of their workforce it appears they’ve actually terminated double that.
Their statement on the incident says, “We regret and take responsibility for any instances where customers may have received a product that they did not request” although it’s of course more than just being given something of value without asking for it (the statement sounds like they did customers a favor), Wells Fargo not only agreed to a $185 million CFPB fine but also to refund $5 million in fees to customers that those customers didn’t know they were incurring until it was too late. They’ve settled with the LA City Attorney as well.
The most shocking thing here is the rampant scale — the thousands of employees were on average opening hundreds of fraudulent accounts apiece over the last 5 years.