Case Studies - Various sources of Frauds in ADCs.docx

7/26/2019 Case Studies - Various sources of Frauds in ADCs.docx

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Case I: Delhi Police Arrest 22-Year-Old ATM Fraud

NEW DELHI: With the arrest o a 22-!ear-old !outh" Delhi Police toda! clai#ed

to ha$e sol$ed i$e cases o cheati%& ATM users '! 'loc(i%& the cash dis)e%si%&

#achi%e*

The accused" ide%tiied as Pi%tu +u#ar" haili%& ro# ,aha%a'ad" ihar" .as

arrested '! the sta o adar)ur Police /tatio% !esterda!* Fi$e cases o cheati%& o

diere%t areas i% southeast .ith si#ilar #odus o)era%di ha$e 'ee% sol$ed" )olice

said* O% Ma! 0" o%e Mada% +u#ar had re)orted to )olice that 1s 2"333 ha$e

'ee% .ithdra.% ro# his accou%t throu&h ATM i% three i%stall#e%ts

453"333653"3336"3337 at the sa#e ti#e a%d date*

A case .as re&istered '! )olice i% this co%%ectio% a%d i%$esti&atio% .as ta(e% u)*

Police o'ser$ed that i% the rece%t )ast" there .as a s)urt i% the i%cide%ts o

cheati%& at ATMs .ith users aili%& to .ithdra. #o%e!" 'ut cash 'ei%& de'ited

ro# their accou%ts* Duri%& i%$esti&atio%" the )olice tea# $eriied the records o

all those cri#i%als had a si#ilar #odus o)era%di*

8Fi%all!" .e 9eroed i% o% o%e Pi%tu +u#ar .ho had earlier 'ee% arrested i% a

si#ilar case* Yesterda!" ti) o .as recei$ed that he .ould co#e i% the area o

adar)ur or co##itti%& the cri#e* A tra) .as laid a%d at a'out 52:3 PM" Pi%tu

+u#ar ca#e there o% a #otorc!cle .ith 'ro(e% %u#'er )late a%d .as cau&ht"8said DCP 4southeast7 Ma%dee) 1a%dha.a* Duri%& i%terro&atio%" he ad#itted his

i%$ol$e#e%t i% se$eral cases o cheati%& co##itted at ATM ce%ters '! 'loc(i%&

so#e 'utto%s o the #achi%e* He disclosed that he had lear%t this #odus o)er%di

throu&h i%ter%et o% 8ATM hac(er $ideo*co#8*

Case Studies Various

Sources of Frauds in

ADCs


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To cheat the ATM users" he alo%& .ith his acco#)lice i;ed 4


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Ho. such rauds could ha$e 'ee% )re$e%ted?

@The $icti# could ha$e a$oided the raud ro# ha))e%i%& i the! .ere a.ared

a'out the dos a%d do%ts .hile usi%& ATM

@As it .as #e%tio%ed that the 'utto%s .ere >a##ed '! usi%& adhesi$e #aterial" the

$icti# could ha$e .aited till the ti#e out scree% sho.s u) 4.hich &e%erall! ta(es

B- #i%s at #a;i#u#7ater the ailure o tra%sactio% the raud could ha$e 'ee%

a$oided*

@The $icti# ater the ailure o tra%sactio% could ha$e ta))ed the ca%cel 'utto% a%d

'! .aiti%& till the ca%cel tra%sactio% %otiicatio% )o)s out * The raud could ha$e

'ee% easil! a$oided*

@I% so#e cases due to lac( o atte%tio% .hile usi%& ATM a%d si#ulta%eousl! doi%&

so#e other .or( li(e use o cell )ho%e results i% rauds* These ca% 'e easil!

a$oided '! )a!i%& )ro)er atte%tio% .hile tra%sactio%s

@Fi%all! the 'est )re$e%tio% to.ards such t!)es o cases is to a.are custo#ersa'out the $arious dos a%d do%ts re&ardi%& ATM ser$ices a%d the co%seue%ces i

the ste)s are %ot ollo.ed*


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Case II: O%li%e 'a%( raud a&ai%" .o#a% du)ed o 1s B"333

A%other case o c!'er cri#e i% March has co#e to li&ht a%d the $icti# is a&ai% a

.o#a%" li(e the )re$ious case that re)ortedl! too( )lace the sa#e #o%th*Accordi%& to the .o#a% .ho has iled a co#)lai%t .ith )olice" o%li%e tra%ser o

#o%e! .as carried out .ithout her (%o.led&e* Police ha$e 'oo(ed a sus)ect" .ho

is 'elie$ed to ha$e called u) the .o#a% to &et her to di$ul&e i%or#atio%

)ertai%i%& to the 'a%( accou%t to later tra%ser #o%e! .ithout her co%se%t* The

$icti# o the latest c!'er cri#e is BB-!ear-old /a!ara Patha% o Pi#)le Nila(h .ho

has re&istered a co#)lai%t .ith /a%&$i )olice* Police" acti%& o% her co#)lai%t has

'oo(ed A#a%(u#ar u)ta 4a ictitious %a#e sus)ected to ha$e 'ee% used '! the

raudster to e$ade detectio%*7 The co)s ha$e i%$o(ed sectio% 23 4cheati%&7 o theI%dia% Pe%al Code a%d sectio%s o the I%or#atio% Tech%olo&! 4IT7 Act i% the case*

Assista%t )olice i%s)ector / ade is i%$esti&ati%& the case*

Police said /a!ara &ot a call ro# the #a% o% her cell )ho%e last #o%th* He

clai#ed to 'e a 'a%( oicer a%d as(ed details o ATM cards she had or her

accou%ts .ith the /tate a%( o I%dia a%d the a%( o Maharashtra* /he shared the

i%or#atio% .ith hi# a%d he alle&edl! #isused it to .ithdra. 1s B"G3 ro# her'a%( accou%t .ithout her co%se%t throu&h ille&al o%li%e tra%sactio%s* Police said

the cri#e too( )lace o% March 50-5* Police sus)ect A#a%(u#ar u)ta is %ot the

real %a#e o the raudster* Earlier" i% a si#ilar case" a%other .o#a%" +al)a%a

Maha>a% 4B7" o A(urdi .as cheated o 1s 5*5 la(h '! u%ide%tiied o%li%e

raudsters* /he lod&ed a co#)lai%t at Ni&di )olice statio%* Police said a #a%

clai#i%& to 'e a 'a%( oicer called Maha>a% o% her cell )ho%e o% March " 235*

He as(ed Maha>a% to )art .ith )erso%al i%or#atio% a%d details o her 'a%(

accou%t* si%& these details he alle&edl! tra%serred 1s 5*53 la(h ro# Maha>a%Js

accou%t .ithout her co%se%t throu&h ille&al o%li%e tra%sactio%* Police said )eo)le

should 'e a.are o such raudule%t )ho%e calls a%d a$oid shari%& )erso%al details

.ith a%!'od!* Police said a%!'od! &etti%& such calls should cross-chec( .ith 'a%(

oicials .hether the calls are authe%tic" 'eore shari%& )erso%al i%or#atio%* K


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Police said /a!ara &ot a call ro# the #a% o% her cell )ho%e last #o%th* He

clai#ed to 'e a 'a%( oicer a%d as(ed details o ATM cards she had or her

accou%ts .ith the /tate a%( o I%dia a%d the a%( o Maharashtra*

C1 OF THE CA/E NO-2

The case is o i%ter%et raud i% .hich a lad! is the $icti# a%d suers lose o

B333-*

The .o#a% lod&ed a co#)lai% .ith the )olice a%d a sus)ect is 'ee% ta(e% i%to

custod!*

It .as #e%tio%ed that so#e a%o%!#ous call .as atte%ded '! the .o#a% a%d thecaller called as a 'a%( oicer a%d as(ed the details re&ardi%& her ATM cards*

Ater so#eti#e #o%e! .as tra%ered usi%& her i%ter%et 'a%(i%& .ithout her

co%se%t or .hich she iled the case*

HOW THE F1AD COLD HAE EEN P1EENTED?

At the $er! 'e&i%%i%& the raud could ha$e 'ee% )re$e%ted i the $icti# .ould

ha$e (%o.% that 'a%(s do %ot call or co##u%icate i% a%! #a%%er a%d as( or a

custo#ers )erso%al details li(e card %u#'er" c$$ %o* etc*

The raudster #ust ha$e )la%%ed this i% a ool )roo #a%%er* The custo#er should

al.a!s ta(e care o there )ass.ords" a%d re&istered )ho%e %u#'ers*

As i%ter%et tra%ser is %ot )ossi'le .ithout the ot) se%d to the custo#ers re&istered

)ho%e %u#'er" o%e should %ot disclose a%! se%siti$e i%or#atio% .hich #a! led to

the du)licac!*

Case I: /i%&le #u# du)ed out o sa$i%&s

Ms W .as called '! so#eo%e .ho said the! .or(ed at isa* /he .as told that her

accou%t had 'ee% co#)ro#ised a%d that she #ust )ho%e her 'a%( i##ediatel!

usi%& the %u#'er o% the 'ac( o her card* Feari%& or the saet! o her sa$i%&s K

.hich .ere #a%! thousa%ds o )ou%ds K Ms W .e%t o% to #a(e a% o%li%e 'a%(

tra%ser to a sae accou%t u%der the i%structio% o the raudster* ! the ti#e she


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realised that she had 'ee% sca##ed there .as %o #o%e! let i% the reci)ie%t

accou%t* Ms W" a si%&le #u#" had 'ee% sa$i%& or esse%tial re)airs to her ho#e*

Not o%l! .ere these re)airs i#)ossi'le ollo.i%& the raud" she .as also let i%

i%a%cial diicult!* The 'a%( oered Ms W 533 or the distress it had caused '!

su&&esti%&" at a% earl! sta&e" that she #i&ht &et her #o%e! 'ac(* ut it .ase;)lai%ed to Ms W that 'ecause she had #ade the o%li%e tra%ser hersel" the 'a%(

could %ot ha$e (%o.% the tra%sactio% .as raudule%t K a%d thereore the 'a%( .as

%ot to 'e 'la#ed*

The distressi%& i#)act o these %o ha%&-u) rauds is%Jt o%l! do.% to the si9e o the

su#s o #o%e! i%$ol$ed* It is ote% #ade .orse 'ecause" due to the .a! the raud

is carried out" it #a! 'e e;tre#el! diicult 4or i#)ossi'le7 or co%su#ers to &et the

#o%e! 'ac(*

ishi%& 4$oice )hishi%&7 is the cri#i%al )ractice o usi%& the )ho%e to deraud"

du)e or #islead so#eo%e* A )articular or# o $ishi%& thatJs caused co%cer% is the

%o ha%&-u) sca#* Here" raudsters K usuall! )osi%& as the )olice or a 'a%( K

)ersuade co%su#ers that their accou%t is at i##ediate ris(* Fraudsters tell

co%su#ers that the! %eed to #o$e or .ithdra. their #o%e! ur&e%tl! to (ee) it

sae" usi%& a tech%ical tric( o% the )ho%e li%e to add to the )lausi'ilit! o the sca#

a%d to &ai% access to co%su#ersJ )ri$ate )erso%al a%d i%a%cial i%or#atio%*

Ques* Do !ou thi%( the raud could ha$e 'ee% )re$e%ted?

Case : Ide%tit! thet

Ide%tit! thet is .he% a% i%di$iduals )erso%al or co%ide%tial i%or#atio% is

o'tai%ed '! a%other )erso% .ithout their (%o.led&e* Ide%tit! raud occurs .he%


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raudsters use this i%or#atio% to o'tai% credit" &oods or other ser$ices i% that

)erso%s %a#e*

Ide%tit! Fraud case stud! K

Marc" a 22 !ear old assista%t #a%a&er" %e$er &a$e #uch thou&ht to Ide%tit! Fraud

u%til he recei$ed a% e#ail ro# a 'a%( telli%& hi# that his Ra))licatio% or a credit

card .as 'ei%& )rocessedJ*

Marc had%Jt a))lied or a credit card so he co%tacted the 'a%( i##ediatel! a%d

ca%celled the a))licatio%*

%ortu%atel! the raudster K .ho had &ot hold o MarcJs date o 'irth" e#ail a%d

)ostal addresses a#o%& other 'its o (e! i%or#atio%"K had a))lied or other loa%sa%d credit cards a%d Marc co%ti%ued to recei$e e#ails alerti%& hi# to %e.

a))licatio%s u%der his %a#e*

Marc co%tacted the )olice* He .as e;tre#el! .orried a'out the e;te%t o the

raudsters acti$it! a%d the eect this .ould ha$e o% his credit score* It .as ti#e

co%su#i%& to ca%cel each a))licatio% a%d &et the# re#o$ed ro# the le%dersJ

records*

Marc >oi%ed a credit reere%ce a&e%c! to chec( his credit re)ort* He the% ou%durther a))licatio%s i% his %a#e that .ere raudule%t* The a&e%c! ste))ed i% to

hel) Marc" a%d a %ote .as attached to his credit re)ort e;)lai%i%& that he had 'ee%

the $icti# o atte#)ted ID Fraud*

Marc said eore this ha))e%ed I %e$er thou&ht t.ice a'out ID Fraud a%d

certai%l! did%Jt thi%( IJd e%d u) 'eco#i%& a $icti# o it* IJ# %o. e;tre#el!

$i&ila%t a'out &etti%& rid o #! co%ide%tial i%or#atio% to #a(e sure that itJs %ot

out there or raudsters to e;)loit*



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Case I: co%su#er u%a.are o )ur)ose o )asscode te;t #essa&e

Mr 1 .as called '! so#eo%e .ho said the! .or(ed or a ce%tralised 'a%( raud

tea#* He .as told that sus)ect acti$it! had 'ee% detected o% his accou%ts a%d he

.as ad$ised to call his 'a%(* Mr 1 did this i##ediatel! usi%& the %u#'er o% the

'ac( o his 'a%( card K %ot realisi%& it .as a% ela'orate sca#* He &a$e securit!

i%or#atio% to the raudsters 'elie$i%& the! .or(ed or the 'a%(Js raud

de)art#e%t* Mr 1 the% recei$ed a &e%ui%e te;t #essa&e ro# his 'a%(* The

raudster as(ed or the code K a%d said this .ould ca%cel a raudule%t tra%sactio%*

ut Mr 1 had%Jt used o%li%e 'a%(i%& or )asscodes 'eore K a%d did%Jt realise that

he .as i% act authorisi%& a tra%sactio% or #a%! thousa%ds o )ou%ds ro# his

accou%t to the accou%t o the raudster* The co%su#er is &i$i%& a.a! i%or#atio%

all the ti#e duri%& the raudule%t call* It #a! 'e hard or the# to deci)her or

re#e#'er .hat the! told the cri#i%al* Michael I%&ra#" se%ior o#'uds#a% 2

Whe% it ca#e to li&ht that Mr 1 had 'ee% derauded" his 'a%( reused to reu%d the

#o%e!" sa!i%& Mr 1 had shared his )erso%al 'a%(i%& details a%d $alidated the

tra%ser* ut the o#'uds#a% disa&reed K 'ecause althou&h Mr 1 had &i$e% the

)asscode to the raudster" it .as the raudster .ho t!)ed it i% a%d co%ir#ed the

tra%sactio%* Mr 1 had %o )re$ious e;)erie%ce o )asscodes" a%d so 'elie$ed .hat

the raudster told hi# a'out the )ur)ose o the te;t #essa&e* We u)held Mr 1Js

co#)lai%t a%d he recei$ed a reu%d ro# the 'a%(*


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Case VII: consumer held liable for disputed debit card transactions

Acti%& as e;ecutor o his late .ies estate" Mr M co%tacted the 'a%( a'out a

%u#'er o dis)uted cash #achi%e .ithdra.als that had 'ee% #ade ro# his late

.ies sa$i%&s accou%t*

The .ithdra.als" totalli%& o$er 0"333" had 'ee% #ade .ith the card that had 'ee%

issued o% the accou%t* A%d the tra%sactio%s had all ta(e% )lace duri%& the t.o-

#o%th )eriod .he% Mrs M had 'ee% seriousl! ill i% hos)ital" ollo.i%& a stro(e*

Mr a%d Mrs Ms &ra%dso%" Mr ," had su'seue%tl! 'ee% co%$icted or the thet o

the #o%e!* Mr , %o lo%&er had the #o%e!" so it .as %ot )ossi'le to reco$er it ro#

hi#* A%d the 'a%( reused to reu%d Mrs Ms accou%t as it co%sidered she #ust

ha$e 'ee% 8grossly negligent in her care of the card and PIN8*

Complaint upheld

Mr M did %ot dis)ute that his &ra%dso% had #ade the .ithdra.als* The

circu#sta%ces i% .hich Mr , had o'tai%ed the card a%d PIN .ere distressi%& a%d

u%usual* He had arri$ed at his &ra%d)are%ts ho#e shortl! ater Mrs M had a

stro(e* He had the% stole% the card a%d PIN %otiicatio% .hile Mr M .as

)reoccu)ied .ith atte%di%& to his .ie a%d .aiti%& or the a#'ula%ce to ta(e her to

hos)ital*

The 'a%( said that" u%der the ter#s a%d co%ditio%s o the accou%t" Mrs M .as

lia'le or the .ithdra.als i she had ailed to act .ith reaso%a'le care* I% its $ie."

'! (ee)i%& her card to&ether .ith the PIN %otiicatio% she had ailed to act .ith

reaso%a'le care*

Ho.e$er" u%der theBanking Codea custo#ers lia'ilit! is li#ited u%less the!

acted raudule%tl! or .ith &ross %e&li&e%ce* Clearl!" there .as %o su&&estio% that

Mrs M had acted raudule%tl!* /o the issue .e had to decide .as .hether" i%

(ee)i%& a %ote o her PIN .ith the card" Mrs M had 'ee% &rossl! %e&li&e%t*

E;ce)t .he% Mrs M too( her card out o the house i% order to .ithdra. cash" she

had al.a!s (e)t it" to&ether .ith the PIN %otiicatio%" i% a s#all 'o;* This .as

hidde% i% a s#all ca'i%et i% a% u)stairs roo# o the house* The card a%d PIN .ould

%ot" thereore" ha$e 'ee% accessi'le to a%! casual $isitor*


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It .as reaso%a'le to co%clude that Mr , had o%l! disco$ered the .herea'outs o the

card a%d PIN 'ecause" o$er ti#e" he had 'ee% a'le to search throu&h the house

.hile $isiti%& his &ra%d)are%ts*

I% all the circu#sta%ces" .e did %ot co%sider Mrs M could airl! 'e said to ha$eacted .ith &ross %e&li&e%ce* We u)held the co#)lai%t a%d said that Mrs Ms estate

should 'e co#)e%sated '! the 'a%( re-.or(i%& her accou%t 4i%cludi%& i%terest7 as

thou&h the dis)uted .ithdra.als had %e$er 'ee% #ade*

C1 OF THE CA/E

The case .as iled '! the hus'a%d o the custo#er .ho died rece%tl! 'ecause o a

stro(e* The co#)lai%t .as iled re&ardi%& the .ithdra.al ro# her late .ie .hich.as do%e .hile she .as seriousl! ill* The accused .ere the &ra%dso%s o the

custo#er* While i%$esti&atio% it .as ou%d that .hile $isiti%& their &ra%d )are%ts

ho#e the accused had &ai%ed access o the at# card alo%& .id the )i% as 'oth .ere

(e)t '! the custo#er to&ether i% a ca'i%et* The 'a%( de%ied to co#)e%sate or the

loss as the said that it .as the case o %e&li&e%c! ro# the custo#erJs e%d as it is

al.a!s su&&ested to (ee) the card a%d )i% se)aratel! or to destro! the )i% )h!sical

e$ide%ce ater #e#ori9i%& it* Ho.e$er the custo#er %e$er too( the )i% a%d card

to&ether outside the house* lti#atel! 'a%( had to co#)e%sate or the dis)uted.ithdra.al i%cludi%& i%terest as it .as ordered that the custo#er could %ot 'e

airl! to 'e said to ha$e acted .ith &ross %e&li&e%ce*


The raud could ha$e 'ee% )re$e%ted >ust '! ollo.i%& these #easures

I the ATM card a%d )i% .as %ot (e)t to&ether as al.a!s ad$ised '! the 'a%( I the letter co%tai%i%& the )i% had 'ee% destro!ed ater #e#ori9i%&*

I the )i% had 'ee% cha%&ed as it is al.a!s ad$isa'le '! the 'a%( to do so*


11/15

Case VIII: Bank alters its record of customer's details to show a

false name and occupation

Mr +" .ho had a curre%t accou%t a%d a credit card accou%t .ith his 'a%(" .as $er!

sur)rised to recei$e a credit card state#e%t .ith the .ro%& %a#e o% it* Thestate#e%t .as clearl! his" as the accou%t %u#'er a%d all the tra%sactio% details

.ere correct* Ho.e$er" the %a#e o% the state#e%t a))eared to ha$e 'ee% #ade u)

a%d %ot a &e%ui%e %a#e at all*

Ater #a(i%& a %u#'er o )ho%e calls to the 'a%(" Mr + .as e$e%tuall! told that

the %a#e cha%&e had co#e a'out 'ecause o a 8systems error8* The 'a%( se%t hi#

a cheue or 2 or his out-o-)oc(et e;)e%ses i% ha$i%& to )ursue the #atter*

Althou&h the %a#e o% the cheue .as closer to his o.% %a#e tha% the %a#e o% the

state#e%t had 'ee% - it .as still %ot ri&ht*i$e% this urther error" Mr + re#ai%ed #ost co%cer%ed a'out .hat .as ha))e%i%&

o% his accou%t* Whe% he )ursued the #atter urther" he disco$ered that the 'a%(s

record o his occu)atio% stated that he .as a 8professional shoplifter8* Mr + the%

'rou&ht his co#)lai%t to us*

Complaint upheld

It soo% 'eca#e clear that the alteratio%s to Mr +s details o% his credit card accou%t

had %ot co#e a'out as a result o a s!ste#s error" as the 'a%( had told hi#* Thecha%&es had 'ee% #ade deli'eratel!" '! a #e#'er o the 'a%(s sta*

The 'a%( had co#)ou%ded the )ro'le# '! aili%& to &et Mr +s %a#e ri&ht .he% it

se%t hi# a cheue* It had also ta(e% se$eral #o%ths to a#e%d his %a#e o% his

credit reere%ce histor!* The o$erall eect o all this .as that Mr + .as caused a

si&%iica%t de&ree o distress a%d i%co%$e%ie%ce* We said the 'a%( should )a! hi#

33 co#)e%satio% or this*


@The $icti# could ha$e a$oided the raud ro# ha))e%i%& i the! .ere a.ared

a'out the dos a%d do%ts .hile usi%& ATM


12/15

@As it .as #e%tio%ed that the 'utto%s .ere >a##ed '! usi%& adhesi$e #aterial" the

$icti# could ha$e .aited till the ti#e out scree% sho.s u) 4.hich &e%erall! ta(es

B- #i%s at #a;i#u#7ater the ailure o tra%sactio% the raud could ha$e 'ee%

a$oided*

@The $icti# ater the ailure o tra%sactio% could ha$e ta))ed the ca%cel 'utto% a%d

'! .aiti%& till the ca%cel tra%sactio% %otiicatio% )o)s out * The raud could ha$e

'ee% easil! a$oided*

Case I: Disputed ATM Withdrawals

Mr Lal a%d Ms $a%da%a dis)uted a lar&e %u#'er o ATM .ithdra.als" totalli%&

S2"333" #ade ro# their li%e-o-credit accou%t o$er a three-!ear )eriod .ith their

de'it cards* The! ac(%o.led&ed recei$i%& #o%thl! state#e%ts" 'ut said the! .ere

o%l! co%cer%ed .ith the closi%& 'ala%ce* The! o%l! #ade a detailed chec( .he%

the! %oticed that their ho#e loa% .as %ot reduci%& as uic(l! as the! had e;)ected*

The! )ro$ided a detailed list o dis)uted tra%sactio%s to the 'a%(" 'ut co%ceded

that so#e o the .ithdra.als .ould ha$e 'ee% their o.%* The! clai#ed that access

to their accou%t could ha$e 'ee% &ai%ed i%ter%all! '! the 'a%(" or $ia a hac(er o%

the i%ter%et*

The 'a%( decli%ed to #a(e a%! reu%d* It said it .as %ot clear .h! so#e

tra%sactio%s .ere dis)uted a%d others .ere %ot* It also %oted that Mr Lal a%d Ms

a%da%a had %ot dis)uted a%! tra%sactio%s o% their credit card accou%t" !et o%

so#e da!s" $alid credit card )urchases occurred i% the sa#e su'ur' as dis)utedde'itcard.ithdra.als*

FACT/:

Facts that ca#e u) duri%& the i%$esti&atio% i%cluded that:


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-oth de'it cards .ere used" 'ut #ost o the dis)uted .ithdra.als .ere #ade .ith

Mr LJs card both cards had bank-generated PINs o% t.o occasio%s it see#ed

that dis)uted ATM .ithdra.als had 'ee% used to #a(e )a!#e%ts to the credit card

accou%t o% o%e occasio% a dis)uted .ithdra.al .as ollo.ed '! a $alid

.ithdra.al o%l! o%e #i%ute later a%d o% at least o%e occasio% there .as a dis)utedcash .ithdra.al usi%& a de'it card o% the sa#e da! that o%e o the dis)uta%ts used

a credit card to )urchase &oods i% the sho))i%& ce%tres*The case #a%a&er ou%d

that there .as %othi%& to su))ort the co%te%tio% that accou%t access .as &ai%ed

i%ter%all! '! the 'a%( or $ia a hac(er o% the i%ter%et* There .as also %o

i%or#atio% to su))ort a )ossi'ilit! that a% u%authori9ed third )art! had &ai%ed

access to the cards a%d PINs* O% the .ei&ht o i%or#atio%" the case #a%a&er

co%cluded that the #ost )ro'a'le e;)la%atio% or the dis)uted tra%sactio%s .as that

the! had 'ee% #ade '! the a))lica%ts the#sel$es* The 'a%( .as %ot as(ed toco#)e%sate the a))lica%ts


The raud could ha$e 'ee% )re$e%ted >ust '! ollo.i%& these #easures

I the ATM card a%d )i% .as %ot (e)t to&ether as al.a!s ad$ised '! the 'a%(

I the letter co%tai%i%& the )i% had 'ee% destro!ed ater #e#ori9i%&*

I the )i% had 'ee% cha%&ed as it is al.a!s ad$isa'le '! the 'a%( to do so*


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Case : Unauthoried Credit Card Transaction

Ms + a))lied or a credit card 'ut sa!s the a))licatio% .as decli%ed a%d she %e$er

recei$ed the card* /o#eti#e later" Ms + .as co%tacted to #a(e )a!#e%ts o% a

de't o S5"333 o.i%& o% the credit card accou%t* Althou&h Ms + did %ot 'elie$e

she .as res)o%si'le or the de't" she 'eca#e %er$ous .he% the 'a%( threate%ed to

list the deault .ith a credit re)orti%& a&e%c!* /he relucta%tl! a&reed to re)a! S3

)er #o%th to.ards the de't* M/ + the% recei$ed a letter ro# a collectio% a&e%c!

de#a%di%& re)a!#e%t o the ull a#ou%t o the de't* Ms + co%tacted the 'a%( toas( ho. the accou%t could ha$e 'ee% o)e%ed i% her %a#e .he% her a))licatio%

.as decli%ed* /he reuested co)ies o the ide%tiicatio% that had 'ee% sho.% .he%

the accou%t .as o)e%ed" 'ut she .as ad$ised that she .ould ha$e to )a! a ee or

the de't* A deault listi%& .as su'seue%tl! e%tered a&ai%st Ms +Js %a#e a%d .he%

this .as disco$ered" Ms + .rote to the Fi%a%cial O#'uds#a% /er$ice reuesti%&

assista%ce* The* dis)ute .as reerred to the 'a%( or its co%sideratio%* The 'a%(

co%ducted a% i%$esti&atio% i%to the #atter a%d ad$ised that its records sho.ed that

the credit card a))licatio% had" i% act" 'ee% a))ro$ed 'ut that it .as %ot a'le toco%ir# that Ms + had recei$ed the card* The 'a%( acce)ted that the card #a!

ha$e 'ee% used raudule%tl! '! a third )art!" a%d the dis)ute .as )ro#)tl!

resol$ed .ith the 'a%( a&reei%& to e;ti%&uish Ms +Js lia'ilit! or the de't a%d

re#o$i%& the deault listi%&*


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Documents

Case Studies - Various sources of Frauds in ADCs.docx