In a small bank environment, who investigates fraud? The case concerns a forged debit card. Right now we are left with the loss, after crediting the customer account. Our serice bureau that handles the debit cards says to consult our fraud area. Who?? Can anyone recommend what our next step might be?
Thanks in advance.

Who handles your check forgeries or your other card disputes? I would send it to one of these folks. Your processor should help you deal with which ever large company your debit cards run through, MasterCard or Visa. Unfortunately the Bank is usually left with the loss in a signature based debit card fraud situation. You do have the protection of when did the customer report the card missing vs when did the transations get authorized; some of your loss could be put back on the customer, it really depends on the situation. In our bank, the ATM/Debit card folks and the bank security officer get involved in debit card fraud.

The person who missed the fraud meeting will be responsible for fraud investigation.

No, seriously, it is difficult to wear so many hats in a small bank environment. Although it is easy to push this to the Security Officer, that might not work in a small bank. If the Security Officer has sufficient training in the newer products such as debit cards...great. If not, however, the investigation should be handled by the person who knows the rules the best--probably the person who manages the debit card tasks every day.

If you are starting from square one, it doesn't matter who gets elected. Someone has to get up to speed with the rules and quickly. Debit card rules are tricky and change frequently. Networking with others is a great way to learn. Buy lunch for a few other bank officers handling fraud and share investigation techniques and best practices.

I like Brenda's reply. She is right, it does not matter who does it, just so the job gets done. That is why I get in trouble (haha), I step out of my boundaries. When the company is all of our lively hoods, it affects all of us if we do well or not. That is what I try to get (some) of Management to see.

When I have had your situation recently, I assisted the lady in deposit operations that deals with the atm/debit cards. We both were very fustrated because it appears that the banks are accountable for the loss, not the retailer.

I also want to start getting the "physical" security officer more involved with these types of cases too. Forged checks, stolen checks, etc.

Good Luck! And don't get discouraged!

this opinion is mine not my employer

My bank is small ($65MM) and even though we have a compliance officer, we have officers/supervisors responsible for certain regulations, such as E and CC. I am the CC guru and responsible for updates to the reg, annual training, etc. We have another officer that is the Reg E guru who handles all things even close to E and as in your case handles all the debit card fraud/errors, ACH problmes and ATM problems. Maybe this type of thing would work at your shop. The Reg E officer keeps everything in three-ring binders - one for current regs, one for policy & procedures, and one for error resolution/fraud investigations. Works out real well.