Bank transactions
unauthorized transactions investigated by banks

How do banks investigate unauthorized transactions?

Banks and financial institutions are saddle with the responsibility of protecting their customers against any fraud activities that may temper with their funds in the banking system, when there is a case of an unauthorized transaction they bank follows a step by step process to corrects and deal with offenders involve in such illegal activities, the step by step process include:

1.      The client tender a complain regarding the transaction

2.      The bank customer care examines the complain

3.      Bank bring together all evidence the customer brought

4.      The bank investigate the transaction

5.      Finally the bank takes the decision

As listed above the step that banks use to investigate unauthorized transaction are very effective and when it is finalize the customer will get a refund of his or her money. Firstly the client will have to lays a, complain to the banks customer care before they can be able to initiate the process on refund or recovery. The customer does that through the customer help unit of the bank and fill in the required information about the transaction, it could be a failed business transaction or fraudulent activities that occur on the account.

Secondly the customer care examines the, complain laid by the customer for further recommendation by the bank authorities.

Thirdly the bank will request for the available evidence of transaction, it could be the debit or credit alert that was send to the customer which is also reflecting in the bank statement. The account officers will then ascertain whether there was a transaction or not.

Fourthly the bank will then gather the evidence that is associated with the holders account to determine the outcome whether it is a fraudulent activities or a legit one by the account holder

And lastly when the bank finds all evidence to be true they will initiate a refund of such transactions and then you can get you money back.


How long does it take a bank to investigate a transaction?

Most banks that are involve with cash transaction takes highest 7 working days after the, complain has being initiated. The number of days attach to this, is to allow the bank make a proper investigation before a final decision is being made just so to avoid error and encourage professionalism in the banking sector. At least by that time one can get a positive feedback about the next action to take.

Can banks refund unauthorized transaction?

The answer here is yes and no depending on the scenario, if the transaction is carried out legally with the consent of the account holder then it cannot be unauthorized, but when it is wrongfully done without the consent of the customer it will be refunded and the fraud will be persecuted and he or she will pay back the money in the account and could also be jailed.

How do customers get their refund after an unauthorized transaction?

After all investigations are carried out and there is a clear understanding the customer will then get their monies refunded to their accounts with the bank from there the customer will be able to withdraw their fund to any bank of their choice.

Types of fraud associated with unauthorized transaction

1.      Friendly fraud

This type of fraud has to do with the holder of the credit cards who made a transaction but still claiming that they know nothing about how money was withdrawn from their account, but actually they themselves did the transaction

2.      Family fraud

Family fraud deals with the involvement of a family member who knows the information on the credit card and decides to withdraw money without the knowledge of the owner of the account.

3.      True fraud

True fraud involves a criminal who is determining to withdraw money from the account of another person because he has access to the bank information of that individual; this is mostly the case with most account holders.

What is the process banks use to investigate fraud?

The processes used by banks to investigate fraud are as follows:

1.      The bank starts it investigations from the transaction data to check signs of fraudulent activities. This include the time, location, IP address and other important information to prove whether is the card holder or an external element

2.      The bank statement is checked to analyze how funds come in and goes out of the account. When there is irregularities the bank take a drastic action until the issue is resolved

3.      In cases where the customer is accusing the merchant of defrauding them, the merchant must always look out for such; inquiries that have an accurate address can be prevented.

4.      Further information is taken to the deposit insurances agency and other security authorities for more investigation.

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