Tech

Venmo and cell alert for ALL users – why you have to face an epic fight to get STOLEN money back

IF YOU use Venmo or cell and you are the victim of a theft it can be an uphill battle to get your money back.

Banks in the United States are required by law to refund all unauthorized transactions at the customer’s request.

If you're using Venmo or cell and you're the victim of a theft, it can be an uphill battle to get your money back.

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If you’re using Venmo or cell and you’re the victim of a theft, it can be an uphill battle to get your money back.Photo credit: Getty

This is known as Regulation E and was passed by the Federal Reserve Board (FRB) in 1978.

In particular, according to the FRB, this protects “any person, including offices of foreign financial institutions in the United States, who provide EFT services to residents of a state.”

In 2020, the Consumer Financial Protection Bureau also found that this includes peer-to-peer payments through apps likezelle and Venmo.

However, now many customers who have fallen victim to financial fraud are finding their banks rejecting their refund requests.

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In one instance, a man named Chuck Ruoff lost $3,450 to a SIM swap attacker via cell.

And when he asked his banking institution, Bank of America, for a refund, they told him the transaction appeared to be unauthorized, according to Android Police.

Only after The New York Times exposed the story did the bank become proactive and give him a refund.

Ruoff’s story is shared by many frustrated customers who have struggled to get their stolen funds back.

Why is this happening?

Many banks argue that they shouldn’t have to refund customers who are victims of fraud.

For starters, “Regulation E was never intended for instant money movement products,” Peter Tapling, a payments advisor, told the NYT.

He added that this new policy update has “caused a lot of fear and confusion among banks.”

As a result, many banks refuse to give customers their money back – even after they have provided proof that they have been scammed.

In addition, banks rarely provide their customers with explanations for their decisions.

However, since this is essentially illegal, most banks will collapse and give customers their money back – albeit not without a fight.

In the cases where people are scammed by bad actors – who often pose as bank employees – the banks usually refuse refunds.

Banks argue that the person who carried out the transaction himself cannot be “unauthorized” as described in Regulation E.

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However, this argument has drawn the attention of government officials, who have criticized big banks and demanded that they be held accountable.

“Reports of widespread fraud harming Zelle consumers are deeply concerning, particularly as the parent company and the major banks that own it accept no responsibility,” said Sen. Elizabeth Warren (D-Massachusetts).

https://www.the-sun.com/tech/5619460/venmo-zelle-warning-users-stolen-money-refund/ Venmo and cell alert for ALL users – why you have to face an epic fight to get STOLEN money back

Chris Barrese

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