An Oakland woman says her entire $12,145 investment account disappeared in a wire transfer shortly after she answered a frantic call from someone claiming to work in security for Charles Schwab.
Jazz Powell-Loggins received the unexpected call on July 13. The man told her someone was trying to move money from her account and presented himself as a Schwab representative attempting to stop the supposed theft.
Powell-Loggins says the conversation lasted about two minutes before she ended it to answer a call from her doctor. She then received a notification confirming that a wire transfer had been completed, and the entire $12,145 balance was gone.
How that transfer was authorized is now disputed. Powell-Loggins says she gave the caller no account information, while Charles Schwab says its investigation concluded that a verification code was provided to a third party and used to complete the wire.
The Caller Created an Immediate Sense of Panic
Powell-Loggins told ABC7 News that she normally avoids calls from unfamiliar numbers but answered this one. She said the man immediately began speaking loudly and warning that someone was trying to take money from her account.
Rather than calmly explaining a security issue, the caller repeatedly portrayed the situation as an emergency while Powell-Loggins struggled to understand what he was saying. She described the conversation as creating immediate panic and confusion.
Jasika Bawa, a project lead for Google’s Chrome Security who spoke with ABC7, said the frantic call may have been intended to occupy Powell-Loggins’s attention while account activity was taking place elsewhere.
The Entire Balance Went to a Bank in Ohio
After Powell-Loggins ended the call, the wire-transfer alert appeared on her phone. Transaction information reviewed by ABC7 showed that the $12,145 had been sent to a bank in Ohio.
The money had been part of savings she hoped to use to help her son finish college without debt. Powell-Loggins also told ABC7 that she is out on disability following a workplace injury while her husband is undergoing cancer treatment. She reported the incident to local police and the FBI.
Schwab Says a Verification Code Was Provided to a Third Party
Powell-Loggins sought reimbursement from Charles Schwab under the company’s security guarantee. She said Schwab responded approximately five weeks later with a letter denying her claim.
According to the letter reviewed by ABC7, Schwab said its investigation found that Powell-Loggins had provided a verification code to a third party, allowing the wire to be completed. Powell-Loggins disputes that conclusion and says she did not provide the caller with any information.
Schwab declined ABC7’s request for an on-camera interview and provided a statement describing the incident as an example of growing impostor fraud. The company did not answer ABC7’s follow-up question asking what evidence showed that Powell-Loggins had provided the verification code.
The Verification-Code Dispute Could Determine Whether Schwab Covers the Loss
Powell-Loggins is challenging Schwab’s decision through arbitration. The dispute centers on whether the transfer qualifies as unauthorized activity under the brokerage’s security guarantee or whether access information was shared in a way that Schwab considers authorization.
Schwab’s published Security Guarantee says the company covers losses caused by unauthorized activity, but it also requires customers to safeguard account-access information. Schwab specifically tells customers not to share login IDs, passwords, PINs or transaction codes and says activity by someone given that information can be considered authorized.
Hang Up and Call the Brokerage Through a Number You Verify Yourself
Schwab warns customers that criminals may impersonate financial institutions or their fraud departments and create urgency to make a request appear legitimate. The company identifies unexpected contact and pressure to act quickly as warning signs.
If someone unexpectedly calls claiming that money is being stolen from an investment or bank account, end the conversation and contact the institution independently through the official website, mobile app or a number already known to be legitimate. Do not use a callback number supplied by the person who initiated the suspicious contact.
Schwab specifically advises customers who suspect fraud or notice unauthorized activity to contact the company immediately so the account can be reviewed and further losses can be addressed.