Banks help to safeguard the financial resources of account holders. People deposit their funds with insured institutions to reduce their risk of theft and potentially secure interest on top of the base amount that they save.
Unfortunately, bank accounts are not absolutely secure. If outside parties gain information about an account or fraudulently misrepresent themselves as the account holder, they could potentially conduct inappropriate and fraudulent transfers. Electronic banking makes such transfers even easier for those with nefarious intentions.
Fraudulent transfers can empty an account or deprive an account holder of tens of thousands of dollars. People affected by fraudulent transfers, including older adults living on a fixed income, may reach out to their financial institutions for assistance. What options do they have if their bank refuses to take action?
Formal reporting can prevent future fraud
The good news for those affected by fraudulent transfers is that federal regulations help protect them. Generally speaking, those who suspect fraud should notify their financial institutions of their concerns as soon as possible to freeze the account and prevent additional transfers.
Under the Electronic Fund Transfer Act (EFTA), people who follow the right procedures after a fraudulent transfer can potentially limit their liability to just $500 or possibly less if they act quickly. Those who file reports within the first two days can limit their liability to $0.
They can protect themselves if they act within 60 days of learning about the transfer. That 60-day window generally begins when a financial institution provides a statement for the most recent month to the account holder.
People who notice questionable transfers may want to work with an attorney to evaluate the financial records and communicate with the necessary parties. Appropriate steps taken promptly after discovering fraudulent transfers can result in account holders receiving reimbursement for those funds and can prevent them from being liable for any future fraudulent transfers.
Particularly in cases where financial institutions do not provide prompt support, those trying to preserve their resources may need assistance dealing with the aftermath of fraudulent transfers. Discussing the situation with an attorney can help people make use of their rights, limit their liability and even hold the right party accountable for fraudulently transferring resources that did not belong to them.