Wells Fargo & Co (NYSE:WFC) says that it has found an additional 1.4 million fake Wells Fargo accounts in its database.
Wells Fargo & Co brought in a third-party to have it review accounts to determine their authenticity. In the third-party’s examination, it found an 1,.4 million accounts that may not be authorized. This was possible by looking at activity of the fake Wells Fargo accounts.
The additional 1.4 million fake Wells Fargo accounts come after an initial search that found 2.1 million fake accounts. This brings to total number of possible fake accounts to 3.5 million. WFC says that the search by the third party errs on the side of customers.
The first scan for fake Wells Fargo accounts looked at 93.5 million accounts opened from May 2011 through mid-2015. The new scan covered 165 million accounts from January 2009 through September 2016.
According to WFC, 2.55 million of the fake Wells Fargo accounts were discovered in the initial search period. 981,000 accounts that may be fake were found in the expanded search dates.
The first scan for fake Wells Fargo accounts found 130,000 that had suffered fees. Now it says this number has reached 190,000 following the most recent search. As a result, WFC is adding an additional $2.8 million for refund and credits. It set aside $3.3 million for this following its first scan for fake accounts.
Wells Fargo & Co also notes that it looked over online bill pay services over eight years. It found 528,000 instances of possible unauthorized bill pay sign up. It is using $910,000 to refund customers that faced charges and fees due to the issue.
WFC stock was down slightly as of Thursday afternoon and is down 7% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.