How H-1B hires broke USAA’s bond with veterans
The United Services Automobile Association is one of the most venerable names in banking and insurance, a company that prides itself on its service to members of the military and their families. In recent years, however, USAA has run into serious financial trouble due to a combination of mismanagement, fashionable diversity, equity, and inclusion policies, and the firm’s increasing reliance on incompetent and untrustworthy H-1B workers, most of whom are from India.
A significant number of current and former USAA employees have come forward to discuss what they describe as a toxic workplace culture, which has led to an alarming number of employee suicides, and the company’s outsourcing of critical functions to H-1Bs and Indian consultancies, putting at risk the financial data of its customers, which include high-ranking members of the U.S. armed forces.
What began as a cost-cutting strategy in the early 2000s now threatens the stability of an institution long trusted by veterans.
Insiders granted anonymity to avoid retaliation say USAA’s decline began in the 2000s under then-CEO Robert G. Davis, who outsourced IT and other core functions to H-1B contracting firms such as Tata Consultancy Services. Those firms imposed contracts requiring USAA to maintain minimum staffing levels, creating chronic overstaffing. Idle contractors were reportedly assigned “busywork” to meet quotas, with conference rooms converted into laptop farms where workers sat “packed like sardines.”
One insider described the result as “incredibly incompetent” operations. Projects that U.S.-based employees could complete on time were instead handed to H-1B contractors who often lacked the necessary skills and required retraining.
From cost-cutting to collapse
At the same time, USAA repeatedly laid off American staff and replaced them with foreign workers, driving labor costs higher and eroding institutional knowledge. Davis retired abruptly in 2007, but his successors continued his policies, expanding USAA’s offshore footprint with new IT centers in Guadalajara, Mexico, and Chennai, India.
Insiders say H-1B contractors at USAA often lack basic programming skills, compounding inefficiency. In one case, a credit card processing problem baffled contractors for six months until the company brought back a retired American employee, who solved the problem in a matter of days. The constant visa turnover worsens the issue. Skilled H-1Bs leave after six years, draining institutional knowledge. Turnover is even higher at USAA’s Guadalajara facility, where Indian employees reportedly fear cartel violence.
Bureaucratic bloat magnifies these problems. Each team has dual directors, and many systems rely on outdated software. That dysfunction has drawn scrutiny from federal regulators, who fined USAA for failed audits and violations of anti-money-laundering laws. Those failures forced the company to sell off divisions, including real estate, and pushed USAA into persistent losses through much of the decade.
Customers have also felt the effects. Many complain that poorly trained H-1B staff struggle to handle basic service requests. One customer said resolving a fraud alert took hours — and that he now contacts USAA’s top executives directly to get results.
Security risks and cultural decay
USAA’s growing dependence on H-1B contractors and overseas labor has created potential security and compliance risks, according to multiple insiders. The company has outsourced anti-money laundering work to Tata Consultancy Services, which reportedly performs much of that work in India. As a result, the personal financial data of U.S. service members and veterans may be stored or processed abroad.
USAA also shares customer data — including names, addresses, and birth dates — with LexisNexis, with no option for customers to opt out. One customer said he only discovered this practice after receiving a notice in the mail.
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Inside the company, these policies have coincided with a marked decline in morale. Mass layoffs of veteran employees have preceded at least three suicides, including one who shot himself in a company parking lot. A former director described intervening to stop another potential suicide. Tensions intensified during the COVID-19 pandemic, when USAA defied Texas Republican Gov. Greg Abbott’s executive order banning vaccine mandates.
Employees describe a sharp cultural shift away from USAA’s traditional military ethos toward a mishmash of corporate diversity programming. The company has hosted Diwali celebrations and mandatory DEI events while facing allegations of religious discrimination against Christian employees. One former employee has taken a case to arbitration. Internal surveys reportedly show employee satisfaction at just 33%.
An institution on the brink
Analysts say the company’s reliance on foreign labor and internal instability have eroded its reputation for customer service and financial stewardship. What began as a cost-cutting strategy in the early 2000s now threatens the stability of an institution long trusted by veterans.
Whether USAA can recover will depend on its ability to restore confidence — both among employees and the members it was established to serve.
Editor’s note: The headline and subheadline of this article have been edited after publication.
‘Swatting’ hoax hits Election Day: FBI probes ‘terroristic’ emails to polling locations in NYC, NJ
Some polling locations were targeted by bomb threats on Election Day, but officials said that no voting was disrupted because of the incidents.
The New York Police Department and the Federal Bureau of Investigation said they were investigating an “elaborate swatting attempt” at some New York City polling locations.
County officials then said that the threats were all ‘malicious, intimidation-driven acts intended to disrupt the democratic process.’
Police sources said that “terroristic” threats were sent via email about the polling locations at Washington Heights, the West Village, and Midtown.
At the same time, New Jersey police were responding to bomb threats in at least seven counties.
New Jersey Lt. Gov. Tahesha Way also serves as the state’s highest election official and said there were “no credible threats” and encouraged voters to resist intimidation.
“We are doing everything in our power to protect voters and poll workers and coordinate closely with state, local and federal partners to ensure a smooth and safe election,” she added. “We encourage every eligible voter to exercise their right to vote before 8:00 p.m. today.”
Polling sites in Bergen, Essex, Mercer, Middlesex, Monmouth, Ocean, and Passaic Counties all received the emailed bomb threat, according to N.J. Attorney General Matthew Platkin.
“Law enforcement officers have responded at each affected polling place, and they have worked swiftly to secure these polling locations and ensure the safety of every voter,” Platkin added in a statement. “Some of these polling locations have already reopened to the public. At others, voters will be directed to a nearby polling location to cast their ballot.”
County officials then said that the threats were all “malicious, intimidation-driven acts intended to disrupt the democratic process” but assured voters that polling sites were safe and secure.
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U.S. Attorney General Pam Bondi said the Dept. of Justice was responding to the threats.
“We are on it. This Dept. of Justice is committed to free, fair and safe elections,” she wrote on social media.
Some New Jersey schools were closed for the day out of an abundance of caution over a threat made to a polling site at a high school.
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Tommy Robinson has the last laugh after politically motivated terrorism arrest: ‘Free speech won!’
Tommy Robinson has long drawn the ire and attention of British establishmentarians by raising hell about the fallout of mass immigration, the failure of multiculturalism in England, the threats posed by radical Islam, and the cover-up of the Pakistani rape-gang scandal.
British Prime Minister Keir Starmer, various other politicians, and even some woke clergymen have condemned him; multiple social media platforms have banned him; and he was even told to stay clear of an entire city.
‘Thank you for raising the flag of England whilst so many cowards cowered.’
The desperation to shut Robinson up or, at the very least, make him go away manifested last year in the form of an unjustified police stop, which resulted in his indictment on a terrorism charge under the British equivalent of the Patriot Act.
To the likely chagrin of Robinson’s detractors in parliament and to the delight of his supporters on the scene, Judge Sam Goozee of the Westminster Magistrates’ Court cleared the 42-year-old activist on Tuesday, agreeing with the defense that the stop was unlawful and that police discriminated against Robinson because of what he stands for and his political beliefs.
“That judge’s verdict is a slam down against the police,” Robinson told reporters outside the courthouse. “Read what he says. Read about the evidence. It was corrupt. It was unlawful.”
“I’m frustrated still. I should be happy. I’m not happy because I shouldn’t be put through this time and time again,” Robinson added.
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photo by Mark Kerrison/In Pictures via Getty Images
On July 28, 2024 — a day after organizing a political rally — Robinson was detained by Kent police under Schedule 7 of the Terrorism Act while attempting to travel to Spain, where he now lives. During his detention, Robinson was told to give police the PIN necessary to access his phone.
Robinson allegedly told police, “Not a chance, bruv. … You look like a c**t, so you ain’t having it,” adding that his phone contained sensitive “journalist material” regarding “vulnerable girls.”
Alisdair Williamson, Robinson’s lawyer, emphasized during the trial that Robinson “was stopped unlawfully, detained unlawfully for 40 minutes, and asked questions that were something to do with his political beliefs.”
Judge Goozee evidently agreed, finding on Tuesday that the stop did not appear motivated by any genuine suspicion of terrorism but rather by Robinson’s beliefs, which altogether qualify under the law as a protected characteristic. The judge also took issue with the police officers’ apparent selective amnesia regarding the incident and credibility.
Goozee said in his ruling, “I cannot put out of my mind that it was actually what you stood for and your beliefs that acted as the principle reason for the stop,” the Guardian reported.
“I cannot convict you,” the judge added.
In addition to questioning what happens now to the counterterrorism officers who unlawfully targeted him, Robinson thanked Elon Musk after the trial, stating, “I’m forever grateful. If you didn’t step in to fund my legal fight for this, then I’d probably be in jail. So today, free speech won!”
Elon Musk responded, “Thank you for raising the flag of England whilst so many cowards cowered.”
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Typhoon Tino to dump rains over Luzon, Visayas areas
Typhoon Tino will continue to bring rains over parts of Luzon and the Visayas on Wednesday, PAGASA said.
Storm surge warning raised in Palawan, Occidental Mindoro
State weather bureau PAGASA raised the alert of a “high risk of life-threatening storm surge” in Palawan, Occidental Mindoro, Antique and Oriental Mindoro within the next 24 hours due to typhoon Tino.
Northern Palawan remains under Signal No. 4 as Typhoon Tino keeps strength
Typhoon Tino maintains its strength as it moves over the coastal waters of northern Palawan, keeping some areas under Signal No. 4, weather bureau PAGASA said.
Dubai-based Pinay chess coach dreams of becoming world-renowned
Dubai-based Rowelyn Joy “Kajoy” Acedo keeps her dreams alive of becoming a world-renowned chess player.
Israel says it received the body of another deceased buried by Hamas in Gaza
Israel on Tuesday received a body from Hamas via the Red Cross in Gaza that would be transported to Israel for identification, the Israeli Prime Minister’s office said, after Hamas said it had located the remains of a hostage to be returned to Israel.
FAA resumes traffic at Washington, DC, airport after threat reported against plane
The FAA said operations were halted after a reported security issue and passengers have been taken off the plane, and the aircraft is away from the terminal while authorities investigate.
