Compromised Credit Card (Unauthorised Retail Transaction)

Background

Mr X who works in Vietnam realised that his credit card was stolen on 3/5/2016 and immediately contacted Bank Y to block his card. However, he discovered that there were 12 unauthorised transactions amounting to RM2,870.31 were charged to his credit card.

Mr X alleged that he did not receive any verification calls from Bank Y and those transactions were not consistent with his usual spending pattern. He also disputed the signature on the sales drafts.

 

Investigation and Findings

Bank Y blocked Mr X’s credit card on 3/5/2016 upon receiving a call from Mr X. The sales drafts showed that Mr X’s credit card was presented at the merchant’s premises to perform all of the disputed transactions. Three (3) short message services (sms alerts) were sent to Mr X’s mobile number registered with the bank on 2/5/2016 but Mr X only called the bank on 3/5/2016. By then, all the twelve (12) unauthorised transactions had been completed. Mr X confirmed that his credit card was stolen on 30/4/2016 by his Vietnamese friend who stayed with him at that point in time. Mr X also forwarded the closed circuit television (cctv) footage confirming   that the unauthorised transactions were conducted by his friend at the merchant’s premises. Mr X confirmed in his police report dated 7/5/2016 that his Vietnamese friend admitted to the theft and promised to pay back the disputed sum but disappeared soon after. However, on a goodwill basis Bank Y offered 20 percent waiver on the total disputed amount which Mr X rejected.

 

Recommendation

The Case Manager recommended that Bank Y waive 20 percent of the total disputed amount and all finance and late charges incurred on the disputed amount. Mr X accepted the Case Manager’s recommendation.