Step One: Identify and define the problem • Wells Fargo, one of the largest banks in the United States was recently fined $185 million because of a widespread scheme that employees created to collect fees and hit sales targets. These employees opened up over 1.5 million deposit accounts that were reported to be not authorized by customers. This scheme has been going on since 2011 without any acknowledgment until recently when customers were being charged with overdraft fees and insufficient funds. Step Two: Analyze the problem • The problem to be analyzed here is exactly why the employees were doing what they did based on the serious legal consequences. The 5,300 employees that were involved in the fraudulent practice opened up over 1.5 million deposit accounts. The employees moved funds from customer’s accounts into new accounts and also submitted 565,443 credit card applications without their consent. Within those credit card accounts roughly $400,000 in fees were being charged to these customers due to insufficient funds, over draft fees. They would create fake PIN numbers and fake emails to enroll current …show more content…
Wells Fargo also stated that they fired all employees over the years that had anything to do with the phony accounts. This left 5,300 without a job after the investigation. After this company caused such a conflict and conducted fraud, many current customers have lost trust and discontinued their services with the company. Wells Fargo takes full responsibility for this and stated that they are open about it and when they make mistake they take action about it. In addition to the agreed upon solution- all banks need to start taking action and monitor their systems frequency to be able to stop such problems like such before it occurs. This scam went on for way longer than it should have. It could have been stopped a lot sooner