We have an individual who apparently left the USA and went to Bolivia. The person is not a US citizen. Mail is coming back undeliverable (US address) Someone has been making ATM transactions since Sept 08. In Sept - Oct 2, 2008 someone other than the acct owner had to be using the Bolivia ATM because she came in to our US branch to make cash deposits. There is hardly any activity, but the balance is around $10,000 and I worry she's not coming back to the US. What if she later claims unauthorized transactions? Can we cut off her access to ATMs until she contacts us. Mgmt is worried about her legal "access" to funds. I say she can access by other means, so no problem. Anybody ever had a situation like this?

I would think you could block this card under suspicion of identity theft (Red Flags). I have blocked cards after 3 statements have been returned due to bad address. It's a sure way to get the customer to contact the bank.

You should review your ATM or debit card agreement. I suspect you included a statement that it was yours and you could turn it off if and when you wanted to.

My philosophy would be that the customer isn't getting statements, hasn't provided you with a current address as required, and you suspect there may be fraudulent use of the ATM card. Put it on hot status. As Brenda said, most agreements say it is your card and you can deactivate it at will. If possible, your customer will contact you and you'll get this straightened out.

It may be that your customer sent the card to someone who is authorized to use it. If it was a crook you'd likely see maximum withdrawals every day. But no matter. You're attempting to protect your customer and you have cause.