By: Robert J. Nahoum
Bank representative impersonation scams have surged in recent years as fraudsters use increasingly convincing tactics to trick consumers into sending money or revealing account access. These scams often begin with a phone call, text, or email that appears to come from your bank. The scammer might spoof the bank’s legitimate phone number or email address, making the communication look authentic. Some scams we’ve seen are so sophisticated that the fraudster uses that same hold music as the bank.
The impersonator usually claims that suspicious activity has been detected on your account. To “prevent fraud,” they will ask you to confirm your account number, online banking credentials, or verification codes. In some cases, they may even urge you to transfer funds to a so‑called “safe account” — which, in reality, belongs to the scammer.
Once the funds are transferred, recovering them can be difficult without legal protections. Thankfully, that’s where the Electronic Funds Transfer Act (EFTA) comes in
What Is the Electronic Funds Transfer Act?
The Electronic Funds Transfer Act, or EFTA, is a federal law enacted to protect consumers who use electronic means to move money. Electronic funds transfers include ATM withdrawals, debit card transactions, direct deposits, and online or mobile banking transfers including through banking apps like Zelle, Venmo, PayPal and CashApp.
Under the EFTA, financial institutions must investigate and resolve unauthorized electronic fund transfers when consumers promptly report them. The law also limits consumer liability for unauthorized transactions if the bank is notified quickly — often within two business days after discovering the fraud.
How the EFTA Protects Victims of Bank Impersonation Scams
If money is stolen through a bank impersonation scam, the critical question is whether the transfer qualifies as “unauthorized” under the EFTA. The law defines an unauthorized transfer as one initiated by someone other than the account holder and without authority.
When a scammer tricks a consumer into initiating a transfer under false pretenses, courts have sometimes treated the transaction as unauthorized, especially if the consumer had no intention of sending money to the fraudster. This legal interpretation can allow victims to invoke their rights under the EFTA and seek reimbursement from their bank.
Banks, in turn, must complete an investigation and determine whether an error occurred. If they fail to follow the legal procedures, they may be held liable for the full amount of the loss, plus damages and attorney’s fees.
Steps to Take if You’re Targeted
If you suspect a bank impersonation scam:
- Do not share account numbers, login credentials, or verification codes.
- Hang up and call your bank directly using the number on the back of your card.
- Check your account activity and promptly report any unauthorized transactions.
- Submit a written dispute within 60 days of receiving the bank statement that lists the fraudulent charge.
- File a police report with your local police department.
Document every communication related to the fraud. Timely action often determines whether your bank must investigate and credit your account under the EFTA.
Protecting Consumers Against Financial Deception
Bank representative impersonation scams exploit the trust consumers place in financial institutions. Knowing your rights under the Electronic Funds Transfer Act can make a critical difference in recovering stolen funds and holding banks accountable for mishandled fraud claims.
If you need help recovering money lost to an impersonation scam, contact us today to see what we can do for you. With offices located in Brooklyn and the Hudson Valey, the Law Offices of Robert J. Nahoum represents consumers in cases throughout the Tristate area including New Jersey.
The Law Offices of Robert J. Nahoum, P.C
(845) 232-0202
www.nahoumlaw.com
info@nahoumlaw.com