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Fraudulent Electronic Transfers from Your Bank Account: Are You Liable? The short answer is "it depends." Regulation E or "Reg. E," is a federal regulation that implements the Electronic Fund Transfers Act (the EFTA) to protect consumers against unauthorized and fraudulent electronic funds transfers from their bank account. It also protects consumers from some liability to the bank when an unauthorized transaction takes place. Reg. E covers a number of electronic transactions, including through a debit card, ATM, electronic point-of-sale terminal, and can extend to electronic third-party payment processors. If you notice an unauthorized transaction in your bank account, the first thing to do is report it to your bank account. You should provide as much detail as possible about the transaction and why you believe it was not authorized. Your financial institution must then investigate alleged errors and report back to you within a specific timeframe whether it believes the transaction was authorized. However, a number of banks botch this step--either by failing to inform the consumer of their rights under the EFTA or by unreasonably concluding that the transaction was authorized when the evidence in the bank's possession does not support that conclusion. If you have unauthorized activity on your account related to electronic transfers and the financial institution is saying you are responsible for the loss, call us today, we may be able to help.