Unauthorized Fund Transfers and Electronic Payment Fraud

When unauthorized withdrawals, unauthorized electronic fund transfers or charges appear on your bank or credit card account, the financial loss can be immediate and devastating. Identity theft, account hacking, device hacking, and compromised payment devices such as phones or debit/credit cards have made consumers increasingly vulnerable. The increasing use of electronic funds transfers through apps like PayPal, CashApp, Venmo and Zelle have made unauthorized transfers a rapidly increasing risk to consumers. Federal law provides critical protections when these unauthorized transfers occur, but asserting your rights requires prompt action and clear understanding of the Electronic Funds Transfer Act (EFTA) and the Fair Credit Billing Act (FCBA).

Understanding Your Rights

The Electronic Funds Transfer Act (EFTA) (15 U.S.C. §1693 et seq.) governs electronic transactions made through debit cards, ATMs, over-the-phone payments, online transfers and other digital payments through phone apps. Under the EFTA, banks are required to investigate and resolve reports of unauthorized electronic fund transfers. Consumers generally have limited liability for losses if they report an unauthorized transaction within specific timeframes.

Similarly, the Fair Credit Billing Act (FCBA) (15 U.S.C. §1666) protects consumers from credit card fraud, credit card billing errors or unauthorized charges on credit card accounts. It gives cardholders the right to dispute charges and withhold payment during the investigation process.

Both statutes place the burden of proof on financial institutions – not on consumers – to demonstrate that the disputed transactions were authorized.

Common Scenarios

  • Identity theft leading to withdrawals or charges on consumer bank and credit card accounts;
  • Debit or credit card information compromised by data breaches or skimming;
  • Fraudulent mobile transfers through Zelle, Venmo, PayPal, CashApp and other payment apps;
  • Unauthorized online banking transactions following device hacking or phishing;
  • Bank or credit card issuers failing to follow required dispute or refund procedures;

How We Help

If you have suffered unauthorized transfers, identity theft, or hacked accounts resulting in lost funds, you have legal rights. Our offices represent clients across New York and New Jersey in enforcing the Electronic Funds Transfer Act and the Fair Credit Billing Act.

Our firm assists clients in recovering losses and enforcing their rights under the EFTA and FCBA. Legal services may include:

  • Reviewing account statements and transaction records;
  • Preparing written disputes and notifications under applicable timelines;
  • Corresponding with banks, credit unions, and credit card issuers;
  • Pursuing restitution, reimbursement, and statutory damages;
  • Taking legal action where institutions fail to comply with legal protections;

We understand the urgency and frustration that accompany financial fraud. Whether your loss stems from a stolen debit card, a hacked online account, or a mishandled dispute by your bank or card issuer, we can help you navigate the legal and procedural remedies available.

Contact

If you have experienced unauthorized fund transfers or suspicious charges on your bank or credit card accounts, contact us for a no fee consultation. We will review your claim, evaluate your legal options, and help you take decisive steps to recover your funds and protect your rights.

The Law Offices of Robert J. Nahoum, P.C
(845) 232-0202
www.nahoumlaw.com