Consumers are inundated with fraud these days. Whether it’s scam emails, texts, phone calls, etc., it’s a constant threat and they typically go to their financial institution for help when things go wrong. It’s important to remember; however, that Regulation E does not define or address what constitutes “fraud”. Rather, it limits consumer liability for “unauthorized electronic fund transfers”, which are defined as …an electronic fund transfer from a consumer's account initiated by a person other than the consumer without actual authority to initiate the transfer and from which the consumer receives no benefit… If a fraudulent transaction meets that definition, you must follow Regulation E but, if it doesn’t, Regulation E does not apply.
Jerod explains more in the video.
Published 2026/04/28
