Capital One, Discover Bank and Broadway Bank Sued, Accused of Failing To Stop $995,170 Scam: Report
Texas-based car dealership Jim Dunworth is reportedly suing Broadway Bank, Discover Bank and Capital One after losing nearly $1 million in a sophisticated bank-impersonation scam.
San Antonio Express-News reports that the scheme involved fraudsters who posed as Broadway employees to steal funds from Dunworth’s bank accounts.
The suit alleges that on March 7th, 2025, a caller who identified himself as a Broadway employee called Dunworth using a number associated with the bank.
The caller claimed that unauthorized parties attempted to create a profile under Dunworth’s account on Broadway’s online banking platform, iBiz.
Concerns over the security of the account prompted Dunworth representatives to follow the caller’s instructions. In just over an hour, 12 wire transfers worth $995,170 were initiated from the company’s accounts through iBiz.
After the last transfer, a Dunworth official who contacted the bank Broadway learned that the caller was an impostor and requested the bank to cancel the wire transfers.
Dunworth says that 10 of the transfers went to accounts under Discover Bank, which failed to freeze the accounts or stop the transfers despite receiving recall requests from Broadway.
Following the incident, Dunworth says that Broadway asked its representatives to sign a new account and security agreement,
“Rather than promptly securing and protecting Dunworth’s existing accounts and taking appropriate steps to mitigate ongoing loss, Broadway sought to impose new terms that would try to minimize Broadway’s liability while generating additional revenue opportunities for Broadway.”
Dunworth is now suing Broadway for breach of contract and violations of the state’s Deceptive Trade Practices Act, along with Discover and its parent company, Capital One. The lawsuit is seeking for actual damages, treble damages and exemplary damages, as well as attorneys fees and interest.
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