Yet Another Reg E Question

Customer gave card/pin to daughter so she could wd cash. Now, 2 months later he's disputing several debit card transactions as unauthorized. His story is that his daughters friend must have looked over her shoulder when she made the wd at the ATM and memorized his card number. He won't give us a copy of the police report and he won't tell us the name of his daughters friend....which wouldn't make a difference anyway I guess...Seems real fishy to us...but I don't think there's any way around this...pretty sure we need to give him credit. Suggestions?

Give him the cash and close his account or at the very least revoke all card privileges. Or, get a picture of his daughter or him at the ATM.