Debit Card Fraud
PROCEDURE
The credit union will receive an email notification that a case has been created for suspected debit card fraud. The member also receives either text or email notification. The following steps should be taken depending upon how the member responds:
Option 1: Member responds to text or email and confirms “no fraud.” No action by any credit union employee is needed and fraud center will unblock card. If card is not unblocked automatically, the Member Service Rep taking any call should unblock it.
Option 2: Member calls the branch and reports “no fraud.” The Member Service Rep taking the call should alert the fraud center that “no fraud” was confirmed and they should unblock the card. They should log this activity in the spreadsheet on the Teams Fraud Tracking tab and mark the situation as “Closed”.
Option 3: Member responds to the text or email and confirms “fraud.” The Member Service staff currently assigned (Lauren as of 4/4/2024) to handle fraud disputes should reach out to the member as soon as possible to confirm the card was blocked and coordinate card replacement. They should then consult with the member to ensure this was not a recurring charge they had “forgotten” about or some other charge that they had approved. Once they have confirmed with the member that it was truly fraud, complete a Disputed Item Statement (available at H Drive>Accounting>CPS>Cardholder Dispute Letter). The Disputed Item Statement should be completed for ALL transactions regardless of dollar amount if the member is requesting Provisional Credit. Log this activity in the spreadsheet on the Teams Fraud Tracking tab. Proceed to Steps after Initial Fraud Discovery.
Option 4: Member calls a branch to confirm “fraud.” The Member Service Rep taking the call should confirm the card was blocked and coordinate card replacement. The Member Service Rep taking the call should then consult with the member to ensure this was not a recurring charge they had “forgotten” about or some other charge that they had approved. Once they have confirmed with the member that it was truly fraud, complete a Disputed Item Statement (available at H Drive>Accounting>CPS>Cardholder Dispute Letter). The Disputed Item Statement should be completed for ALL transactions regardless of dollar amount if the member is requesting Provisional Credit. Forward the form to the Member Service staff currently assigned to handle fraud (Lauren as of 4/4/2024). Log this activity in the spreadsheet on the Teams Fraud Tracking tab.
Option 5: The member does not respond. The Member Service staff currently assigned to handle fraud disputes (Lauren as of 4/4/2024) should confirm the card was blocked as soon as possible and then reach out to the member within 24 hours to discuss the situation. They will then follow Option 2 or 3 above depending on member’s response.
Steps After Initial Fraud Discovery (Responsible Staff :
Once the above Options have been completed, and if a Disputed Item Statement was completed, Member Service staff assigned to fraud tasks should receive the Disputed Item Statement and monitor the account. If the disputed items posts, provide Provisional Credit:
SD
SC “PROVISIONAL CREDIT/MERCHANT NAME”
GL 801015, DEBIT THE AMOUNT OF THE FRAUD CHARGE, GL COMMENT: MEMBERS NAME
Log this activity in the Teams Fraud Tracking tab.
Filing the Dispute Step 1 (Do not dispute charges under $25, just give provisional credit as described above.)
File on Data Navigator https://ppsweb.passporteft.com
Enter the date range
Enter the card number in PAN field
Add and search
will pull of list of charges.
make sure the view is set to signature research.
find your charge and right click on the card number.
Cases>Create Issuer Cases
Click boxes to the left of transaction you are disputing to file.
Select Begin Exception Process
Enter cardholder Information.
Click update cardholder.
Click Choose Dispute Template
Pull down dispute type. Create Unworked Case
Case group Fraudulent activity w/o PIN
Complete Form- Batch number will be assigned.
Write the number on your Dispute form.
pull down Transactions menu. click Batch Status
make sure total cases to succeeded cases match.
Step 2
locate case you just opened.
top bar Cases menu>Case search
Batch # field: Enter the number you wrote on the dispute form
Add>> and Search
your case will appear
right click on the case number
Select Case Batch Process
select Comment
click box to the left of the transaction
Continue
enter comment
“Card in possession and transaction not authorized by cardholder”
update cases
you will receive a new batch number at the top, write this number on your dispute form.
The dispute is filed.
Periodically go out and check the status of the dispute and update the Fraud Tracking spreadsheet on TEAMS.
Filing Claims with TruStage (Responsible Staff Member: Emily as of 11/27/2023)
Grasslands maintains bond coverage for excess fraud. There is a $100 deductible per card number. Therefore, you should only file fraud losses that exceed $100 per card. You need to file within 90 days of discovery of the activity. Even if there is a dispute pending, you should file the notice to TruStage to ensure you do not exceed the 90 day maximum notice period. Review 801015 monthly and file as appropriate. Log all activity in the Fraud Tracking spreadsheet on TEAMS.