Banking · Customer Liability
Under the regulatory guidelines for unauthorized electronic transactions, in which of the following scenarios does the bank bear full responsibility and liability for a loss?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1When the customer's negligence is the sole cause of the compromise
- 2When the loss is due to a third-party breach (system hack) and is reported by the customer promptly✓
- 3When the customer fails to report the loss despite receiving regular alerts
- 4When the bank can successfully prove the customer's intent to defraud
Correct answer
When the loss is due to a third-party breach (system hack) and is reported by the customer promptly
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