Reg E challenge - Zelle

I am hoping to get your input on a Zelle claim.
Customer reported an unauthorized Zelle debit for $499. We can see that the customer logged in with the same IP address he has been using and initiated the payment. The payment was the result of a scam. Is the bank liable for this under Reg E?

Thank you.

So - the customer authorized the transaction? In my opinion Regulation E doesn't apply since that covers unauthorized transactions. I'm keeping my fingers crossed I'm correct because we just had one similar and I told them it could be denied since the customer performed the transaction themselves.