Electronic Fund Transfers FAQ 2 – If a third party fraudulently induces a consumer to share account access information, are subsequent transfers initiated with the fraudulently obtained account information excluded from Regulation E’s…?

Compliance > Regulation E - EFTA
Q:   If a third party fraudulently induces a consumer to share account access information, are subsequent transfers initiated with the fraudulently obtained account information excluded from Regulation E’s definition of unauthorized electronic fund transfer because they are initiated “[b]y a person who was furnished the access device to the consumer's account by the consumer”?
 
A:   (UPDATED 6/4/2021): No. A consumer who is fraudulently induced into providing account information has not furnished an access device under Regulation E. As explained above in Unauthorized Electronic Fund Transfers and Error Resolution, Question 1, electronic fund transfers (EFTs) initiated using account access information obtained through fraud or robbery fall within the Regulation E definition of unauthorized EFT. See Comment 1005.2(m)-3.
 
 
This Q&A was contained in the CFPB’s Electronic Fun Transfers FAQs that were released in June 2021 (which may be updated from time to time).  This may be found on the CFPB’s website here:  https://www.consumerfinance.gov/compliance/compliance-resources/deposit-accounts-resources/electronic-fund-transfers/electronic-fund-transfers-faqs/
 

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