Docstoc

Sample Cancellation Letter AUDIT PROGRAM Process Merchant

Document Sample
Sample Cancellation Letter AUDIT PROGRAM Process Merchant Powered By Docstoc
					                                                     AUDIT PROGRAM                                                Process
                                               Merchant Fraud Detection Report                                     Map
                                                                                                                    #20

Group:           Operational Risk & Processing                                     Prepared By:
Date:                                                                              Approved By:

Overview: The Merchant Fraud Control Report 006 is a report within the Fraud Containment group
          that captures all merchants that have broken any of the pre-determined rules in one or more of the
          report areas.
          The Fraud Containment Officers are assigned a specific region and must work the corresponding reports
          for that region on a daily basis.

Audit Objectives (AO)                                                       Audit Material(s) Required
To ensure that:                                                             To be obtained prior to the audit:
(a) Fraud Containment Officers are fully knowledgeable of the              * Company Policies & Procedures - Fraud
    Company Policies & Procedures regarding the fraud detection               Detection Process
    process;                                                               * 5 Watch Merchant files each for Eastern,
(b) a thorough investigation was carried out for all files in accordance      Central and Western regions (15 total)
    with the established rules;                                            * 5 Closed Merchant files each for Eastern,
(c) fraud files contain the mandatory documentation and information;          Central and Western regions (15 total)
(d) all systems are concisely memoed throughout the investigation;
(e) monitoring is done by the Team Leader and/or Manager on a
     monthly basis to assess the quality of the investigation and of the
     files


Audit Procedures                                                                                                   WP
                                                                           Comments                  Initials
                                                                                                                 Page No.
1. Conduct an interview with no less than 2 Fraud
    Containment Officers , the Team Leader and Manager to
    assess their knowledge of their daily responsibilities
                                                        AO (a)
2. Select 5 "Watch" and 5 "Closed" merchant files from
   each centre (eastern, central & western):
   (a) Examine the location of the files to determine if they
       are controlled in a central area of the unit and are
       accessible to all members of the group:
       (i) verify that the centres are properly colour-coded
            as follows:
            Eastern= Purple; Central=Red; Western=Yellow
       (ii) verify all files are signed off by management;
      (iii) ensure all Watch files contain the following:
             Checklist; Cover Sheet; System Screen Prints;
             Authorization Logs; Signed ID Letter; Copy of
             Application Case, Contract, Credit Bureau;
             Listing of fraud cards and transaction value;
             CIRF/MATCH prints; Relevant chargeback
             information; Fraud Awareness Package sent out
      (iv) ensure all Termination files contain all of the items
             in (iii), with the addition of:
             Signed Cancellation Letter (to replace ID Letter);
            POS Advice (electronic or faxed copies);
            Branch advised (by phone or fax); Fax table;
            Bank Account statements/cheques (if applicable)
      (v) in cases where a merchant is willing to accept any
            potential chargebacks, ensure there is something
           in writing from the merchant stipulating the
           agreement
     (vi) ensure all screen prints indicate proper memos
           are placed in all appropriate systems
                                                      AO (b)-(d)
3. Review 5 random write-off entries to ensure proper
    authority was received
4. Examine any tracking tools that management has and
    ensure a review of work is done on a monthly basis
                                                         AO (e)
5. Findings Summary


MATCH=Merchant Account Change
CIRF=Consolidated Information Reference File
POS=Point of Sale                                                1
                                                     AUDIT PROGRAM                                           Process
                                               Merchant Fraud Detection Report                                Map
                                                                                                               #20

Group:           Operational Risk & Processing                                   Prepared By:
Date:                                                                            Approved By:

Overview: The Merchant Fraud Control Report 006 is a report within the Fraud Containment group
          that captures all merchants that have broken any of the pre-determined rules in one or more of the
          report areas.
          The Fraud Containment Officers are assigned a specific region and must work the corresponding reports
          for that region on a daily basis.




MATCH=Merchant Account Change
CIRF=Consolidated Information Reference File
POS=Point of Sale                                                2
                                               AUDIT PROGRAM                                                           Process
                                         Merchant Fraud Detection MRMS                                                  Map
                                                                                                                         #19

Group:         Operational Risk & Processing (MasterCard)                                Prepared By:
Date:                                                                                    Approved By:

Overview: The Merchant Risk Management System (MRMS) is a system within the Fraud Containment group
          that captures all merchants that have broken any of the pre-determined rules in one or more of the
          MRMS queues.
          The Fraud Containment Officers are assigned a specific region and must work the corresponding queues
          for that region on a daily basis.

Audit Objectives (AO)                                                            Audit Material(s) Required
To ensure that:                                                                  To be obtained prior to the audit:
(a) Fraud Containment Officers are fully knowledgeable of the                   * Company Policies & Procedures - Fraud
    Company Policies & Procedures regarding the fraud detection                    Detection Process
    process;                                                                    * 5 Watch Merchant files each for Eastern,
(b) a thorough investigation was carried out for all files in accordance           Central and Western regions (15 total)
    with the established rules;                                                 * 5 Closed Merchant files each for Eastern,
(c) fraud files contain the mandatory documentation and information;               Central and Western regions (15 total)
(d) all systems are concisely memoed throughout the investigation;
(e) monitoring is done by the Team Leader and/or Manager on a
     monthly basis to assess the quality of the investigation and of the
     files


Audit Procedures                                                                                                        WP
                                                                                Comments                   Initials
                                                                                                                      Page No.
1. Conduct an interview with no less than 2 Fraud
                                                                                                                       Refer to
    Containment Officers , the Team Leader and Manager to          ~ Interviewed Manager and Team
                                                                                                                         WP
    assess their knowledge of their daily responsibilities           Leader
                                                                                                                        #19-1
                                                        AO (a)
2. Select 5 "Watch" and 5 "Closed" merchant files from
   each centre (eastern, central & western):
   (a) Examine the location of the files to determine if they
       are controlled in a central area of the unit and are
       accessible to all members of the group:
       (i) verify that the centres are properly colour-coded       ~ All files are properly colour
            as follows:                                              coded
            Eastern=Purple; Central =Red; Western=Yellow
       (ii) verify all files are signed off by management;         ~ 7 out of 30 files not signed off
      (iii) ensure all Watch files contain the following:
             Checklist; Cover Sheet; System Screen Prints;         ~ 7 out of 15 files missing
             Authorization Logs; Signed ID Letter; Copy of           documentation
             Application Case, Contract, Credit Bureau;
             Listing of fraud cards and transaction value;                                                             Refer to
             CIRFprints; Relevant chargeback information;                                                                WP
             Fraud Awareness Package sent out                                                                           #19-2
      (iv) ensure all Termination files contain all of the items
             in (iii), with the addition of:                       ~ 3 out of 15 files missing
             Signed Cancellation Letter (to replace ID Letter);      documentation
            POS Advice (electronic or faxed copies);
            Branch advised (by phone or fax); Fax table;
            Bank Account statements/cheques (if applicable)
      (v) in cases where a merchant is willing to accept any       ~ No such cases part of sample size
            potential chargebacks, ensure there is something
           in writing from the merchant stipulating the
           agreement
     (vi) ensure all system screen prints indicate proper          ~ All systems memoed accordingly
           memos are placed accordingly
                                                      AO (b)-(d)
3. Review 5 random write-off entries to ensure proper
                                                                   ~ All entries properly authorized
    authority was received
4. Examine any tracking tools that management has and              ~ Team Leaders review month-end                    Refer to
    ensure a review of work is done on a monthly basis               statistics for all staff                           WP
                                                        AO (e)                                                         #19-4
5. Findings Summary                                                                                                   Refer to
                                                                                                                      WP #19-5

MRMS=Merchant Risk Management System
CIRF=Consolidated Information Reference File
POS=Point of Sale                                                  3

				
DOCUMENT INFO
Description: Sample Cancellation Letter document sample