One of our customers has filed atleast 3 reports with our bank stating that there have been unauthorized debit card POS purchases and ATM withdrawals in the past few months. Each time he comes in to the banking center with a statement and says "I did not authorize these purchases" or "I did not make this ATM withdrawal". We have him file an internal Cardholder Dispute and the past 2 times a provisional credit has been deposited into his account.

I personally believe that he is taking advantage of us. He says he "has an idea of who is doing this." I think that someone else has access to his debit card/pin and therefore this is his issue, not the banks.

Recommendations on how to tell him, I think you're lying/abusing the system, in a more tactful way? Also, are there any regulations that would prevent this type of activity? Thanks!

You say you gave him provisional credit. What did your investigation reveal? Did he get to keep the provisional credit?

ATMs often have cameras. If they don't you may be able to get pictures from other cameras in or near the ATM facility. Does POS signature match? It sounds as if you have more homework to do on this case.

Get more info on who he thinks is doing the transactions. If it is someone that he at one time gave permission to use his card & PIN, you may have an "out" under Reg E to avoid another loss.

I'm not sure what any previous investigation revealed. I'm a teller at the branch he comes to, and I don't think we are ever informed of what the investigation reveals.

I will ask the customer in question whether he has ever given the suspect permission to use his debit card/pin. If he answers something along the lines of "it was only one time"/yes what do you suggest we do? Where in Reg E can we find this?

Cancel his card. Reissue under a different card number. If "errors" continue, cancel his ATM/debit card privilege.

"Cancel his card."

I might just stop there depending on the entire customer relationship.

Ideally, you would have some type of form (and certainly some training) to walk you through this process. NEVER let the customer know of any "outs" that may exist for the bank. Document, very specifically, and make sure the customer understands that an investigation will be conducted and the bank will prosecute the offender. Also, make sure you note that he is signing an Affidavit of Unauthorized Transfer under penalty of perjury (if you use that form).

Questions will vary based on the nature of the transaction. For an ATM you would certainly ask how someone else could possibly have gotten the card and/or PIN? Did you have possession of your card on this date? Have you ever given anyone your card and/or PIN? Was it returned to you? Do you think they could be involved? Have you filed a police report? If so, can we get a copy.

If you can see where the transaction occurred...Have you ever conducted a transaction with this merchant?

I tend to agree with the others. If you have made this process too simple (and not followed through with formal investigation), he may think he has found free money. You definitely need to hot card the card and may need to terminate the relationship depending on the results of your investigation.