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CU Responsible for Member’s Loss to Phishing Scam?
Answer by Andy Zavoina, BOL Guru
Guru Bios
Question: We have a member who fell for a phishing e-mail. The credit union listed on the e-mail was not us. However, our member gave them everything to do with her account with us. Name, social, birthdate, debit card number, pin number, you name it. Are we responsible for crediting her account the $3,000 loss she suffered?
Answer: Credit Unions are subject to Reg. E, the Electronic Funds Transfer Act as shown here on the NCUA web site. If the phished funds were taken electronically, subject to the requirements of Reg. E, then an investigation would be in order and it is very likely that the institution will pay most or all of this amount back to the consumer. Their acting irresponsibly does not take away rights they have under this regulation or increase their liability.
http://www.ncua.gov/GuidesManuals/examiners_guide/chapters/chapter19.pdf
First published on BankersOnline.com 10/17/2005
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