Scenario 2 - Electronic Funds Abuse

Cole Howard held an account with Regions Bank in Atlanta. Julie Wedman, a woman with whom Howard was briefly involved in a romantic relationship, stole his debit card and used it for fourteen months (well beyond the length of their relationship) to make unauthorized purchases in excess of $10,000. When Howard learned what was happening, he closed his account. The bank refused to reimburse him more than $476.56, the amount of unauthorized transactions that occurred within sixty days of the transmittal of the bank statement that revealed the first unauthorized transaction.

• If Howard files a lawsuit against the bank to recover the funds, which party will win? Explain the arguments for each party.
• What penalties could Wedman face related to the use of the debit card?

Include comments related to any ethical issues that arise. You should locate at least one scholarly source from the SUO Library or one case that has been decided or is currently pending to support your answer.