The Electronic Funds Transfer Act (EFTA) is a powerful federal law that protects consumers from losses related to unauthorized electronic bank transactions. With the rise of online banking and digital payments, scammers are finding more sophisticated ways to trick people into transferring money. Fortunately, if you’ve been the victim of a scam or unauthorized transaction, the EFTA may offer legal protections to help you recover your stolen funds.
What Is the EFTA and How Does It Protect Consumers?
Enacted in 1978, the EFTA regulates how banks and financial institutions process electronic fund transfers (EFTs)—including debit card payments, ATM withdrawals, direct deposits, and online money transfers. One of the law’s primary goals is to limit consumer liability in the event of fraud or scams, and to ensure that banks respond appropriately to reports of unauthorized transactions.
Scam and Fraud Scenarios Covered by the EFTA
You may be protected by the EFTA even if you were tricked into making a transfer, especially when fraudsters use deception to gain access to your money. Examples include:
- Phishing scams where you were tricked into entering your bank info on a fake website
- Tech support scams that pressured you into sending money to a “representative”
- Account takeovers or identity theft that resulted in unauthorized withdrawals
- Fraudulent charges after your debit card was lost or stolen
If a transaction was made without your clear consent—or under misleading or coercive circumstances—it may be considered unauthorized under the EFTA.
Your Rights Under the EFTA
The EFTA gives you specific rights and protections if you’ve experienced fraud, including:
- Limited Liability – If you report the fraud promptly, your financial liability may be capped at $50—or even $0—depending on how quickly you notify your bank.
- Right to Dispute – You have the legal right to dispute any unauthorized transfer within 60 days of receiving the statement that shows the suspicious transaction.
- Mandatory Investigation – Your bank is required by law to investigate your claim and resolve it—usually within 10 business days. If more time is needed, they must provisionally credit your account while they complete the investigation.
- Clear Disclosures – Banks must provide clear instructions and disclosures about how to report errors or fraud, as well as your rights under the law.
What To Do If You Were Scammed
If you believe you’ve been the victim of a scam that resulted in an unauthorized transfer, act fast:
- Notify your bank or credit union immediately – The sooner you report the fraud, the stronger your case.
- File a written dispute – Follow up with a formal letter or email explaining what happened.
- Keep documentation – Save emails, texts, transaction records, and any evidence of the scam.
- Consult with a consumer protection attorney – Legal support can make the difference between recovering your money or being stuck with the loss.
Can I Get My Money Back from a Scam?
Yes—in many cases, you can recover your funds through the protections offered by the EFTA. If your bank fails to follow the law or refuses to credit your account after a legitimate dispute, you may be entitled to:
- Reimbursement of your lost funds
- Statutory damages
- Actual damages
- Attorneys’ fees and costs
Get Legal Help for Scam and Fraud Recovery
If your bank won’t return your money after you reported a fraudulent or scam-related transaction, you don’t have to fight alone. Our consumer protection attorneys are experienced in handling EFTA violations and helping scam victims recover their funds.
Contact us today for a free consultation and learn how we can help you hold your bank accountable under the Electronic Funds Transfer Act.
