The same rules apply to prepayment cards as to any other plastic card. Crimes should only be recorded from cardholders if the Financial Institution is not honouring the payment (Exception to the application of the rules).
Example 1: A cloned prepayment card is used to purchase goods from a number of different stores.
One crime (class NFIB5A), one account reported direct to the NFIB by the financial institution.
Example 2: A prepayment card is stolen and then used on a number of occasions. The card issuer refuses to reimburse the account holder for two of the transactions.
Two offences of fraud (class NFIB5A) plus the original theft of the card (class 49). There are two financial losers in this case.
Conspiracy to defraud: do not count in addition to substantive crime.
Principal Crime: see also General Rules Section F and Annex C.
If on the schedule of usage there is evidence of fraud by false representation and usage from ATM machines then count one offence of fraud by false representation only.
Example 1: A schedule of usage reported by the bank shows a number of ATM withdrawals and fraud by false representation offences committed on this account throughout many different force areas.
One crime fraud by false representation (class NFIB5A)
Withdrawing money from ATM’s should be recorded under this class and not under theft from machines or meters (class 47)
Example 1: A stolen cash card is used to obtain money from four cash machines, one inside a supermarket and three outside separate branches of a bank.
One crime of other theft (class 49) covering theft of the card, plus one crime of fraud by false representation (class NFIB5A). There is one account defrauded.
N N FI F IB B5 5A A F F ra r au u d d b by y F Fa al ls se e R R ep e pr re es se en nt ta at ti io on n
C C he h eq q ue u e, , P Pl la a st s ti ic c C Ca ar rd d a an nd d O On n li l in ne e B Ba an n k k A A cc c co ou u nt n ts s ( (n no o t t P PS SP P) )
C C ou o u nt n ti in ng g R R ul u le es s ( (5 5 o of f 6 6) )
Principal Crime: see also General Rules Section F and Annex C (continued).
Example 2: A stolen cash card is used in several different telephone boxes in the same area.
One crime of other theft (class 49) for the theft of the card plus one crime of fraud by false representation (class NFIB5A). There is one account defrauded.
If an employee uses a company credit card beyond the permissions given to obtain goods or services, then the principal crime is Corporate employee Fraud and the venue is where they are employed.
Example 1: An employee uses their company credit card at a number of hotels he is staying at around the country on company business. The card is used as permitted by the company as well as in a non permitted manner to purchase gifts for his family. The unauthorised usage was reported to police at the same time.
One crime (class NFIB8A).
N N FI F IB B5 5 F F ra r au u d d b by y F Fa al ls se e R R ep e pr re es se en nt ta at ti io on n
C C he h eq q ue u e, , P Pl la a st s ti ic c C Ca ar rd d a an nd d O On n li l in ne e B Ba an n k k
A A cc c co ou u nt n ts s ( (n no o t t P PS SP P) ) C C ou o u nt n ti in ng g R R ul u le es s ( (6 6 o of f 6 6) )
Fraud by False Representation – Cheque, Plastic Card and Remote Banking “Offence Location”
Flowchart the offence location for the report and the force covering that address records a crime. If unknown the address of the Beneficiary’s bank is the offence location.
Has the account been taken over? i.e.
where the address for the account holder is changed without their knowledge.
Yes
The account takeover address is the offence location for the report and the force covering that address records a crime. If unknown the address of the bank is the offence location. .
Has a delivery address for any of the goods purchased been established?
No
Yes
The delivery address is the offence location for the report and the force covering that address records a crime. Where there is more than one delivery address established, either the most used will take precedence or the first
chronological address if numbers are equal.
Was the suspect physically present during any of the transactions disclosed? And if so, is that location known at the time of
reporting?
No
Yes
That location is the offence location for the report and the force covering that location records a crime. Where there is more than one transaction location established, the force with the most usages will take precedence or, if equal, the force with the first chronological usage will record a crime.
Yes
No
No
Is the Financial Institution reporting first party fraud by its own customer? (This may follow the procedure of FI asking them to report to police and a CRI being recorded.)
No
The customer’s address is the offence location for the report and the force covering the address records a crime this is regardless of any deliveries or usages being claimed.
Yes
1
2
3
4
The offence location will be the address of the bank’s customer whose account has
N N FI F IB B5 5B B A A pp p p li l ic c at a ti io o n n F Fr ra au ud d ( (e ex xc cl lu ud d in i n g g M Mo o rt r tg g ag a ge es s) ) C C la l as ss si if fi ic ca at ti io on n ( (1 1 o of f 1 1) )
5353//4400((pptt)) FFrraauudd bbyy ffaallssee rreepprreesseennttaattiioonn (V(V)) FrFraauudd AAcctt 22000066 SSeecc 22..
DEFINITION – LEGAL: FRAUD BY FALSE REPRESENTATION FRAUD ACT 2006 SEC 2
“…. Dishonestly makes a false representation, and intends, by making the representation to make a gain for himself or another, or to cause loss to another or to expose another to risk of loss. “