Fraud Department

Fraud Department

Phone 888-307-2990

Department hours:

M-F 6am-7pm Mountain

Sat 8:30am-5pm Mountain

Sun 8:30am-5pm Mountain

After-hours:

JPMorgan Chase Customer Service

Phone 800-270-7760

24 Hours x 7 Days

(Simply choose the section you would like to view and click on the Section Name)

Definitions 3

Types of Fraud 4

What the Fraud Department Does at JPMorgan Chase 5

If Invalid Charges Are Identified 6

Affidavit of Credit Card Fraud 7

Important Tips for Program Administrators 8

Important Tips for Cardholders 9

Frequently Asked Questions 10

Definitions

Fraud

Occurs when there is invalid use of credit card number/information for purchase made by someone other that the true cardholder

False Fraud

Occurs when true cardholder claims charges invalid in order to get out of paying for charges or to avoid reparations at work

Family Fraud

Occurs when charges made by family member of true cardholder

Employee Misuse

Occurs when true cardholder uses credit card for purchases not authorized by company

Employee Embezzlement

Occurs when someone who has authorized access to credit card information (i.e. company officers, administrative assistants) uses that information to defraud the company

Dispute

Occurs when cardholder is familiar with merchant, but questions the amount of the charge, the date of the charge, has a double bill, the reason for the charge, etc

Types of Fraud

Lost

Lost; i.e. left at merchant, misplaced, etc.

Stolen

Stolen; i.e. house/car broken into and credit card taken, pickpocket, etc.

Counterfeit

Account number compromised and embossed onto plastic

MO/TO/IO

Account number compromised and used for mail/telephone/internet order

Non-receipt

Credit card not received in mail

Account Takeover

Pieces of cardholder’s information (i.e. address) changed and credit card eventually sent to suspect

Fraud Application

Suspect uses another person’s security information to obtain a credit card/secure credit

What the Fraud Department Does at JPMorgan Chase

· Monitor accounts to protect against fraud

· Use neural networks to monitor unusual activity -- Some determining factors:

o Type of merchant

o Merchant location

o Amount of charge

o Outside usual activity

o Charges coming out of high-fraud area

· Call cardholder to verify transactions --

o If able to reach cardholder, will identify ourselves as calling from JPMorgan Chase regarding the corporate/purchasing/fleet credit card to verify activity on the account

o If unable to reach cardholder, will leave message for cardholder to call back to review information on JPMorgan Chase corporate/purchasing/fleet credit card

o If confident charges are not valid or charges are very suspicious, will attempt to contact cardholder both at work and home phone numbers; if cardholder unavailable, will attempt to contact Program Administrator; if Program Administrator unavailable, will place temporary hold on account to protect remaining available credit (THUS, IT IS VERY IMPORTANT THAT PHONE NUMBERS ARE KEPT UPDATED)

· When cardholder returns a call, will verify security information before releasing information or discussing account

If Invalid Charges Are Identified

· Will speak with cardholder to try to determine point of compromise

· In most cases, will request that cardholder file a police report

· Will fax Affidavit of Credit Card Fraud to cardholder

· Will advise cardholder to mail back completed Affidavit, including police report number, along with the credit card, cut once in half, and a copy of their driver’s license

· Will ask if cardholder is willing to prosecute

· If cardholder is not willing to prosecute, or cooperate with law enforcement, we are unable to accept the claim

· The reason for this is that, in many instances, we will need the help of law enforcement in order to secure restitution, and law enforcement will not take a case if the cardholder is unwilling to prosecute

· If someone is needed to testify in court, a representative from JPMorgan Chase will attend

Affidavit of Credit Card Fraud

· Affidavit must be returned within 15 business days, as indicated on cover letter; mail Affidavit to: 3949 South 700 East, Suite 500, Salt Lake City, UT 84107

· If cardholder does not return Affidavit in a timely manner, may contact Program Administrator to enlist help in getting Affidavit from cardholder

· As we are unable to attempt recovery of funds without a signed Affidavit, the cardholder will be held responsible for the charges in question if Affidavit is not returned

· Balance of fraud charges will remain on closed account until investigation complete

· If charges are pending when account is closed, those pending charges may post to the new account

· If charges roll new account, they will be transferred to closed account upon JPMorgan Chase’s receipt of signed Affidavit

· If, after Affidavit faxed to cardholder, cardholder determines charges are valid, Withdrawal of Fraud form must be signed and returned

Important Tips for Program Administrators

· Updated cardholder phone numbers are critical

· If a cardholder leaves the company, it is the company’s responsibility to close the account; if the account is not closed and fraud charges occur, the company will be held responsible for those charges

· If the card is not closed and there are charges, may attempt to recover the funds via the waiver liability program (work with your account manager)

· If fraud charges occur, contact JPMorgan Chase immediately

· Only authorized user for credit card is the person whose name appears on the front of the credit card

· Know your employees, especially those that have access to secure information

· Be careful of how credit cards/credit card numbers/employees’ security information/company documents are stored

· Program Administrators need to stress importance of preventing fraud to their cardholders.

· Advise cardholders to keep credit card secure at all times

· Advise cardholders to keep PIN separate from credit card

· Keep the PIN number separate from their credit card. Some cardholders have placed the PIN # on the actual card.

· Make sure your cardholders always know where their credit card is.

· Do not leave your credit card in a desk drawer. It is actually safer to carry the card rather than leaving it certain places.

· Advise cardholders that Visa/MasterCard require that credit card be signed in order to be valid

· If credit cards are sent to Program Administrator before being sent to cardholder, log credit cards when received

· If documents/receipts contain personal information and/or credit card number, shred before disposal

· When viewing charges on PaymentNet, be aware that may be viewing old and new accounts together

· If a cardholder goes on temporary leave (i.e. maternity leave, medical leave, etc.), place a temporary block on the account until the cardholder returns to the office in order to protect the available credit

· If you receive a call from an employee who has fraud on their account, direct them to call JPMorgan Chase to get the fraud procedure started

· We recommend that Program Administrators temporarily close cardholder accounts when the cardholder goes on medical leave, maternity leave, etc.

· Never let another employee use a cardholder’s card. Many merchants call JPMorgan Chase when someone other than the cardholder attempts to make a charge and sometimes the police are called. You should always set up separate cards for each employee.

· JPMorgan Chase does not consider misuse by the company or cardholder as fraud. The company is responsible for any misuse of the card.

· In some situations JPMorgan Chase may ask the cardholder if they are willing to prosecute. Many cardholders are not sure what they may be asked to do if they should agree to prosecute, however all that JPMorgan Chase and authorities will require is that the cardholder cooperate with law enforcement. Typically the cardholder will not be required to appear in court

Important Tips for Cardholders

· Review statements each month; be aware that those perpetrating fraud often begin with one small transaction

· Keep phone numbers updated with Bank

· Sign your credit card

· Keep credit card secure at all times

· Know where credit card is kept

· Keep PIN separate from credit card

· Realize that the only authorized user for the credit card is the person whose name appears on the front of the credit card

· Visa/MasterCard require that the credit card be signed in order to be valid

· Be aware of when statements/new credit card should arrive

· Contact bank immediately if fraud charges occur, we can be reached 24 hours/day

· If documents/receipts contain personal information and/or credit card number, shred before disposal

· When viewing charges on PaymentNet, be aware that may be viewing old and new accounts together

Frequently Asked Questions

Q: Can Program Administrators place a temporary block on accounts through PaymentNet?

A: Yes, in Cardholder Online Maintenance (COM).

Q: Fraud occurred on several accounts for one client. The Program Administrator was upset that he wasn’t notified and feels the Program Administrators should be the first to be notified.

A: The Fraud department’s policy requires that the cardholder be notified first. If we are unable to reach the cardholder, then the Program Administrator is notified. The reason we notify the cardholder first is so we are able to begin working the fraud as soon as possible. If we changed our policy to notify the Program Administrator first it may delay us in beginning our fraud process.

Q: When I (PA) called in to report fraud on an account, I was told I needed to call the Disputes department?

A: For this particular question it was determined that a percentage of the client’s accounts did not have a cardholder’s name on them. When a client has cards set up without a cardholder’s name they lose all fraud rights and must work with the Dispute department to try and resolve them.