If a customer is phished and has EFT transfers made from their account, should these items be subject to Reg E? These EFT's could occur either from within our internet banking, in which a payment is generated, or by initiating an ACH from the phished account. Is there any room for interpretation otherwise? What does industry do?

I'm sure other guru's will sound in but my interpretation is that if the transaction is unauthorized...no matter how gullible they were to be phished in the first place...Reg E. applies (only to consumers though).

So, if John Q Customer responds to an email and provides his internet banking log on and password and Shifty Sam goes in and creates transactions that debit John's account via ACH, then yes, Reg E. would apply.

Chiquita's analysis a-peels to me. Regulation E does not protect banks from their customers' gullibility, naivete, ignorance, carelessness, negligence or other human failings.

Now THAT'S funny.