A loophole in consumer protection law allows for unchecked wire transfer fraud
Victims and consumer advocates want to see regulations put in place to protect banking clients from confidence scams.
Scammers are cashing in on a loophole in a federal law meant to protect consumers.
The Electronic Funds Transfer Act — passed in 1978 — is meant to protect U.S. consumers from being defrauded when they make a transaction via an ATM, debit card or direct deposit or by point-of-sale and phone transactions.
But the law makes an exception for wire transfers. And in recent years, wire fraud has exploded as scammers are making use of the loophole. According to the FBI, its Internet Crime Complaint Center received reports of this type of fraud totaling $2.4 billion in losses in 2021.
Reset sits down with a consumer investigations reporter to better understand what consumers can do to protect their money.
GUEST: Stephanie Zimmermann, consumer investigations reporter for the Chicago Sun-Times
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A loophole in consumer protection law allows for unchecked wire transfer fraud
Victims and consumer advocates want to see regulations put in place to protect banking clients from confidence scams.
Scammers are cashing in on a loophole in a federal law meant to protect consumers.
The Electronic Funds Transfer Act — passed in 1978 — is meant to protect U.S. consumers from being defrauded when they make a transaction via an ATM, debit card or direct deposit or by point-of-sale and phone transactions.
But the law makes an exception for wire transfers. And in recent years, wire fraud has exploded as scammers are making use of the loophole. According to the FBI, its Internet Crime Complaint Center received reports of this type of fraud totaling $2.4 billion in losses in 2021.
Reset sits down with a consumer investigations reporter to better understand what consumers can do to protect their money.
GUEST: Stephanie Zimmermann, consumer investigations reporter for the Chicago Sun-Times