Dallas’ Arthur Anthony and Cameasha Turner co-authored an article for The Banking Law Journal discussing an update by the Consumer Financial Protection Bureau (CFPB) to its guidance regarding unauthorized electronic fund transfers. The COVID-19 pandemic has increased the number of transactions completed via electronic fund transfer, expanding the risk of fraudulent conversion of access device information and other security threads to consumer accounts, the authors write.
While some courts have interpreted the definition of an unauthorized electronic fund transfer narrowly, the authors note the CFPB has taken a broader view, further shifting the burden onto financial institutions.
“Given the volume of potential fraud, it becomes that much more urgent for institutions to develop robust protocols to not only facilitate customer reporting of fraudulent transactions, but also preempt costly exposure resulting from digitized fraud,” they write.
To read the full article, click here.
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