Device vs. User: Why “IP Address Match” Is Not a Valid Investigation

You report a fraudulent transfer. The bank denies your claim the next day. Their reason? “The transfer was made from a known device or IP address.”

This is the lazy bank’s favorite excuse. And under federal guidance, it is often illegal.

The “Reasonable Investigation” Requirement

The CFPB has made it clear that a financial institution cannot rely solely on technical logs to deny a claim. Just because a transaction came from your phone or your IP address does not mean you authorized it.
* What if your phone was stolen?
* What if you were robbed at gunpoint?
* What if your device was hacked?

Context Matters

A "reasonable investigation" must consider the context. Did you file a police report? Did you provide a sworn affidavit? Did the thief drain your entire savings in 5 minutes at 3:00 AM?

If a bank ignores your police report and relies entirely on a "device match" to deny your claim, they have failed to conduct a reasonable investigation under Regulation E. We sue to force them to look at the real evidence.