CFPB EFT FAQ Error Res Unauth EFTs 6 – If a third-party fraudulently induces a consumer to share account access information, are subsequent transfers …excluded from Regulation E’s definition of unauthorized electronic transfer…?

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 transfer because they are initiated “by a person who was furnished the access device to the consumer’s account by the consumer?
 
A:   No. A consumer who is fraudulently induced into providing account information has not furnished an access device under Regulation E. As explained above in Electronic Fund Transfers Error Resolution: Unauthorized EFTs 3, 4, and 5, 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 Fund Transfers FAQs that were updated in December 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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