Fraud-prevention adjustment.

CFR · 2024-01-01 · US · Title 12

(a) (b) (2) An issuer's policies and procedures must address— (i) Methods to identify and prevent fraudulent electronic debit transactions; (ii) Monitoring of the volume and value of its fraudulent electronic debit transactions; (iii) Appropriate responses to suspicious electronic debit transactions in a manner designed to limit the costs to all parties from and prevent the occurrence of future fraudulent electronic debit transactions; (iv) Methods to secure debit card and cardholder data; and (v) Such other factors as the issuer considers appropriate. (3) An issuer must review, at least annually, its fraud-prevention policies and procedures, and their implementation and update them as necessary in light of— (i) Their effectiveness in reducing the occurrence of, and cost to all parties from, fraudulent electronic debit transactions involving the issuer; (ii) Their cost-effectiveness; and (iii) Changes in the types of fraud, methods used to commit fraud, and available methods for detecting and preventing fraudulent electronic debit transactions that the issuer identifies from— (A) Its own experience or information; (B) Information provided to the issuer by its payment card networks, law enforcement agencies, and fraud-monitoring groups in which the issuer participates; and (C) Applicable supervisory guidance. (c) (d)

official document · source cfr-2024 · id 12:§ 235.4