Customer Sues Verizon, Bank of America for Negligence in Phone Hack Case
Verizon was “grossly reckless and negligent” in allowing a third-party criminal to access plaintiff Christopher Ayeni’s cellphone and steal more than $215,000 from his bank accounts, alleged Ayeni's complaint (docket 2:23-cv-00618), removed July 24 by defendants Verizon and Bank of America to U.S. District Court for New Mexico in Las Cruces from the 5th Judicial District Court, Eddy County, New Mexico. Verizon “failed to follow reasonable procedures” to prevent criminals from hacking Ayeni’s device and account data “when criminals apparently visited a Verizon location and sought to ‘hack’ into” his account and phone, said the complaint.
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On or about March 20, Verizon sent a text message to Ayeni, who owns a home in Artesia, New Mexico, to confirm a PIN change to his account “or words to those effect,” said the complaint. Ayeni didn’t click on a link or any content of the text message “because he was not seeking to change his PIN or allow any other person to do so,” it said. A few minutes after the first text, Verizon sent another, asking Ayeni to “confirm access” to his account, said the complaint. Ayeni “immediately called Verizon” and notified a representative “that he was likely being hacked or that someone was attempting to gain improper access to his account,” it said.
After being assured no one would be allowed to access his account, Ayeni lost service, said the complaint. He called Verizon again and was told he had changed his plan from monthly billing to prepaid, though he had not. Despite Ayeni’s calls to report fraud, “Verizon granted access to an unidentified criminal or criminals” who stole over $145,200 from his bank accounts “likely by ‘cloning’ his phone" and using it to make withdrawals, the complaint said.
Bank of America “further victimized” Ayeni by allowing the third parties to “steal more money from his accounts,” some $69,800, even after the plaintiff notified the bank of the fraud and unauthorized access, and he was told his accounts would be “frozen,” he said. Bank of America has a legal duty to take reasonable steps to prevent its customers from being victimized due to fraud, including theft of funds from its consumer accounts, said the complaint.
Ayeni’s lawsuit charges Verizon and Bank of America with negligence and Bank of America with violation of the Unfair Trade Practices Act. Ayeni seeks actual, treble, punitive, statutory and compensatory damages, plus legal costs and pre- and post-judgment interest. Verizon and Bank of America didn't comment.