How bank investigations work

| Mar 2, 2021 | Fraud

Transaction fraud is a huge headache for people in the New York City metro area. It can be frustrating to wait while the bank conducts their investigation. It’s not a process that’s very transparent for consumers. Fraud is complex, and banks have very specific ways of investigating it.

Types of transaction fraud

There are many different kinds of fraud. Usually, fraud is classified depending on who commits it. For example, family fraud occurs when a person the cardholder knows uses an account without authorization. True fraud, by contrast, happens when someone uses a stolen card number to complete a transaction.

One other category of fraud is known as friendly fraud. In friendly fraud, the cardholder themselves falsely files for a chargeback, even though they know they completed the transaction. Disputes occur when a merchant makes a mistake. The cardholder authorized the transaction, but there is a problem with it. For example, the merchant may not have delivered a promised good or service. Or they may have run the transaction twice, instead of one time.

Investigating transaction fraud

When fraud is reported, the bank wants evidence. For someone whose card number was stolen, this can be hard to provide. One thing any victim of fraud should do is look at their card statements closely. Often, criminals start small. If no one notices a transaction for a minor amount, they may progress to a larger one. Consumers have 60 days to report fraudulent transactions.

False accusations

Sometimes, someone will report an authorized use of a card as unauthorized. This can have devastating effects for the accused party. If you find yourself in this situation, it’s important to contact an attorney with experience in criminal defense. They may have experience handling cases involving bank and mortgage fraud.

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