Consumer gave card info, fraud claim

Answered by:

Question:

We had a recent scenario where scammers were using our FI phone number and claiming to be a bank rep contacting our customers. The consumer then supplied all of their debit card information as a way to "validate" their identity to the scammer and the scammer then used their card information along with the CVV and pin number the consumer supplied them to make multiple transactions. Under Reg E is the bank/CU liable?

Answer:

Yes. The consumer was a victim of fraud and (most importantly) they did not authorize a transaction by providing that information.