Standard Operating Procedure for Addressing Suspected Bank Card Fraud Now on the Rise in Zimbabwe

Suspected fraudulent activities are on the rise in Zimbabwe and bank card fraud has become a serious financial security incident that requires immediate, systematic action from the cardholder. In Zimbabwe, as in most jurisdictions, a standardized procedural response is essential for minimizing financial loss, facilitating investigation, and potentially recovering funds. This procedure outlines the critical steps, institutional roles, and best practices to follow when unauthorized transactions are identified.

Phase 1: Immediate Containment and Notification (Actions within 24-48 Hours)

The primary objective of this phase is to stop further unauthorized access and create an official record of the incident with all relevant entities.

1.     Direct Notification to the Issuing Bank: This is the most urgent step. The cardholder must immediately contact their bank's 24-hour customer service or fraud hotline. The bank will:

o   Block the Compromised Card: Immediately deactivate the affected card to prevent any additional fraudulent transactions.

o   Initiate a Dispute or Chargeback Process: Formally log the unauthorized transaction(s) as disputed. The bank will typically provide a reference number for the case and may require a written affidavit or a completed dispute form.

o   Issue a Replacement Card: Arrange for the issuance of a new card with a new number, which will be sent via secure channels.

o   Advise on Account Monitoring: Instruct the customer to monitor linked accounts for any suspicious activity.

2.     Formal Reporting to Law Enforcement: A formal case must be registered with the police. This serves as an official legal document that may be required by the bank, insurers, or for further litigation.

o   Relevant Authority: The report should be filed at the nearest police station, typically escalated to the Commercial Crimes Division or the Cyber Crimes Unit of the Zimbabwe Republic Police (ZRP).

o   Required Documentation: The cardholder should provide all evidence, including bank statements highlighting the fraudulent transaction(s), the bank's dispute reference number, copies of communication with the bank, and any other relevant details (e.g., location and time of the last legitimate card use).

o   Outcome: The police will provide a stamped Police Report or an Affidavit. This document is crucial for proving the crime occurred.

3.     Notification to Other Relevant Entities: Depending on the context of the fraud, other organizations may need to be informed.

o   Zimbabwe Revenue Authority (ZIMRA): If the fraud is suspected to have occurred during an official payment at a port of entry (like Beitbridge) or a ZIMRA office, the matter should be formally reported to ZIMRA's internal audit or investigations department, in addition to the public inquiry channels. This aids their internal security audits.

o   Merchant or Service Provider: If the fraudulent charge is from a specific identifiable company, contacting their customer service to report fraudulent use of their payment system can aid their own investigations.

Phase 2: Documentation, Investigation, and Follow-Up

This phase involves meticulous evidence gathering and persistent follow-up with the institutions involved.

1.     Comprehensive Evidence Compilation: The cardholder should create a dedicated file containing:

o   Chronology of events (dates, times, actions taken).

o   Copies of the bank's initial dispute confirmation and all subsequent correspondence.

o   The official police report/affidavit.

o   Screenshots or statements showing the fraudulent transactions alongside legitimate ones.

o   Records of all phone calls (date, time, name of representative, summary of discussion).

2.     Formal Written Submission to the Bank: Following the initial phone report, most banks require a formal written dispute. This should be a clear, factual letter or completed bank form detailing each unauthorized transaction, the date it was discovered, and the steps already taken (including the police report number). This written submission triggers the bank's formal investigation protocol under the guidelines of the Reserve Bank of Zimbabwe's consumer protection frameworks and relevant national payment system regulations.

3.   

  Understanding the Investigation Process:

o   Bank's Role: The bank will investigate the claim with the merchant's acquiring bank. They will examine transaction logs, IP addresses (for online fraud), and point-of-sale data. This process can take 30 to 90 days.

o   Chargeback Rights: If the investigation favors the cardholder, the bank will execute a "chargeback," reversing the funds from the merchant's bank and crediting the customer's account.

o   Possible Outcomes: The bank may provisionally credit the amount during the investigation. If the bank denies the claim, they must provide a reason in writing (e.g., evidence of cardholder negligence, such as sharing a PIN).

Phase 3: Mitigation, Resolution, and Preventive Security

The final phase focuses on concluding the incident and implementing measures to prevent recurrence.

1.     Final Resolution and Record Keeping: Upon conclusion, the cardholder should receive a final written communication from the bank stating the outcome. All documents related to the case should be archived securely for future reference, as some fraudsters may attempt to use stolen information months later.

2.     Proactive Security Measures for the Future:

o   Digital Hygiene: Enable instant transaction notifications (SMS/email) for all card activity. Regularly change online banking passwords and use strong, unique passwords.

o   Physical Security: Never share PINs or OTPs. Shield the PIN at ATMs and point-of-sale terminals. Be cautious of skimming devices at unfamiliar ATMs or fuel pumps.

o   Vigilance with Online Transactions: Only use secure websites (https://), avoid conducting financial transactions on public Wi-Fi, and consider using dedicated virtual card numbers for online shopping if offered by the bank.

o   Regular Statement Review: Scrutinize bank statements monthly for any irregularities, no matter how small.

Institutional Framework and Cardholder Rights

The procedure operates within a defined regulatory framework. The Reserve Bank of Zimbabwe (RBZ) oversees payment system providers and mandates that banks have clear, accessible consumer protection policies for electronic transactions. Cardholders have the right to a transparent dispute process and a timely investigation. While banks investigate, the cardholder's liability for unauthorized transactions is typically limited, provided there is no evidence of gross negligence or fraud on their part.

Adhering to this structured procedure maximizes the likelihood of a successful resolution. It transforms a reactive panic into a controlled, documented process that leverages the mandated protocols of financial and law enforcement institutions to protect the cardholder's assets and contribute to broader financial system security.