Are Your Electronic Bank Transfers Protected?

But hackers and identity thieves are creative, so, unfortunately, things can go wrong. You could be the victim of banking fraud or errors. However, you have some protection through a federal rule called Regulation E.

Electronic Fund Transfer Act Protects Your Money

The Electronic Fund Transfer Act (EFTA) of 1978, implemented through Regulation E, is a federal regulation that protects consumers when problems happen with electronic fund transfers (EFTs). Transactions covered under Regulation E include:

• ATM transfers
• direct deposit transactions
• automated clearing house transfers
• debit card transactions
• telephone transfers

According to the Federal Trade Commission (FTC), Regulation E requires financial institutions to adopt certain practices respecting such matters as transaction accounting and error resolution.