Loss or theft of an access device includes both the card being physically stolen or just the information from the card. Thus, financial institutions need to be aware that unauthorized transactions can still occur while a card is in a consumer’s possession. For example, if a scammer skims a customer’s card information and they use it to make unauthorized purchases, it would be covered by Regulation E, even if the customer still has their card. With the advancement of chip technology, card fraud risk has been significantly reduced but it’s not fool proof. “Shimming” is a new fraud method that steals data from the EMV chip, rather than the magnetic strip, and is often used to create counterfeit cards.
David explains more in the video.
Published 2026/03/30