I'm not too surprised the fraud claim was denied. You definitely made the payment, you paid a [technically] legitimate business, and they completed some of the

I'm not too surprised the fraud claim was denied. You definitely made the payment, you paid a [technically] legitimate business, and they completed some of the work, i.e. it's hard to say they accepted the payment with intent to defraud you. The fact that they didn't fully complete the agreed work isn't really a matter for the bank's fraud department to resolve. Dunno why NFCU couldn't just communicate that though. Sounds like a shamefully poor support experience on their part.