Customer reporting on ATM card fraud

Answered by:

Question:

Our customer’s ATM card fell out of his wallet and there were two unauthorized withdrawals of $500 each. He didn’t report the theft until he found the charges on his statement and realized the card was missing. Since he reported the theft more than 2 days after it happened, is his liability $500?

Answer:

No. Reg E states that the customer can be held liable for $500 if he waits to report the theft more than 2 business days after he discovers the loss or theft of an access device. Since the customer did not discover the theft until reading his statement, you start counting days from the date of discovery when calculating liability.

Learn more about Brian’s webinar Debit Card Compliance Maze.