Bank fraud is on the rise, and it’s essential to understand how to protect yourself from fraudulent transactions and what legal options you have if you become a victim. In this article, we’ll explore how fraudsters can target you, what your rights are under the Electronic Funds Transfer Act (EFTA), and the legal steps you can take to recover your funds if your bank mishandles your claim.
How Do Fraudsters Steal Your Money?
Fraudulent transactions often begin with a scam phone call or email. In one case, an elderly client of ours was socially engineered by a fraudster who pretended to be her bank. The fraudster called our client and asked if she had authorized a transaction. Naturally, our client said no.
But that was just the beginning. The fraudster continued to ask for personal information such as the client’s name, date of birth, and social security number. This information was used to gain access to the client’s bank account and steal a significant amount of money—$80,000, which was all of the client’s life savings.
This type of scam, known as social engineering, preys on unsuspecting individuals. In this case, the fraudster was able to convince our client to provide the necessary details to carry out the theft.
If you ever receive a phone call, text, or email asking for personal information related to your bank account, hang up immediately and contact your bank directly. Never share sensitive information unless you’re sure of the identity of the person on the other end.
What Is the Electronic Funds Transfer Act (EFTA)?
Under the EFTA, if an unauthorized withdrawal is made from your bank account, you have the right to dispute the transaction. The bank is required to investigate your claim and determine whether it was authorized or if it was a fraudulent transaction. If your bank fails to investigate or mishandles your dispute, you can take legal action.
The law is clear: Banks must act responsibly when handling consumer disputes related to unauthorized transactions. If they fail to do so, consumers are entitled to file a claim for violations of the EFTA.
How the Bank Handles Fraud Claims
When a fraud claim is made under the EFTA, the bank must conduct a reasonable investigation to determine whether the transaction was authorized. The law allows consumers to dispute unauthorized withdrawals, whether the claim is submitted over the phone, by mail, or through other channels.
However, the bank is not always cooperative. If the bank fails to conduct a thorough investigation or refuses to acknowledge that the transaction was fraudulent, you have the right to hold them accountable. This is where the legal process comes into play, as the law offers a path to recovering your funds if your claim is mishandled.
What If the Bank Denies Your Claim?
If your bank denies your claim and insists that you made the transaction, you should not accept this decision. Fraud can happen when someone gains access to your account information, either through a data breach or, as in the example above, a social engineering scam.
When this happens, you have a legal right under the EFTA to pursue a claim for the wrongful rejection of your fraud claim. As a consumer, you are entitled to challenge the bank’s decision and seek compensation through the legal process.
Filing a Lawsuit Under EFTA
The process of filing a lawsuit against your bank can be complicated, especially if you are not familiar with legal procedures. That’s why it’s essential to reach out to an experienced attorney who focuses on consumer protection law, particularly in cases involving the EFTA.
While the legal rules and procedures can be strict, these cases are often resolved more quickly than many consumers expect. In fact, many EFTA cases are settled in just a few months, making it much faster than most people anticipate.
If your bank refuses to acknowledge your fraud claim or mishandles the investigation, filing a lawsuit is often the most effective way to recover your funds. Additionally, legal action forces the bank to take responsibility for protecting its customers from fraud.
The Importance of Taking Action
One of the worst things you can do after discovering fraudulent transactions on your bank account is nothing. If you do not act quickly, the fraudster could continue using your information to open bank accounts or credit cards in your name. In some cases, they might even take out loans using your personal information.
It’s crucial to act quickly by filing a claim with your bank and, if necessary, pursuing legal action. The sooner you take steps to address the issue, the sooner you can recover your funds and stop any further unauthorized access.
Why Litigation Is Necessary
Litigation is often the most effective way to ensure that the bank takes your claim seriously. Many times, consumers expect their cases to take years to resolve, but in reality, EFTA cases tend to move through the court system faster than most other types of cases.
Litigation forces the bank to investigate the fraud thoroughly and compensate you for any losses. Furthermore, it sends a clear message that banks must be held accountable for their failure to protect consumers from fraud.
If you find yourself in a situation where your bank refuses to cooperate or denies your fraud claim, pursuing litigation could be the only way to hold them accountable and recover your funds.
How We Can Help
If you’ve been the victim of bank fraud or if your bank has mishandled your fraud claim, we can help. At Loker Law, we have extensive experience in consumer protection cases, including those involving the Electronic Funds Transfer Act.
We understand how frustrating and overwhelming it can be to deal with unauthorized transactions and banks that fail to investigate claims properly. Let us help you navigate the legal process, hold the bank accountable, and recover the funds that are rightfully yours.
Contact Us for a Free Consultation
If you’re dealing with a fraud claim or have had your bank deny your dispute, don’t hesitate to reach out to us for a free consultation. We’ll guide you through the process, ensure your rights are protected, and work to recover your funds.
