Ted Huffman

1 month ago | lexology.com | Eric R. Hail |Ted Huffman |Christina Grigorian

In an apparent departure from decades of jurisprudence acknowledging the exemption of wire transfers from the ambit of the Electronic Funds Transfer Act (EFTA or the Act), one federal district court recently found that a bank may be liable under EFTA for unauthorized consumer wires initiated using a bank's electronic banking platforms. See New York v. Citibank, N.A., Case No. 24-CV-659, 2025 WL 251302 (S.D.N.Y. Jan. 21, 2025).