We have a customer who recently fell for a scam and gave up their online banking credentials. The fraudster added an external transfer account to their online banking and then initiated two external transfer debits. Do external transfers fall under Reg E's error resolution claim process?

It's an unauthorized transfer initiated through a computer. Yes, it's covered by Regulation E.

I understand it is an unauthorized transaction under Reg E since the customer was induced by a fraudster to provide their online banking credentials.