Network security unit notes (NSU) are a type of note issued by banks and credit card companies. Further, to identify accounts associated with criminal activity.
They are called NSUs because they are not to track personal financial transactions. The notes are to assist police investigators in looking into various types of fraud.
With the growing number of breaches in recent years, the need to detect fraudulent behavior has become even more important for institutions such as banks and credit card companies.
In addition to being able to detect fraud, these organizations also want to determine whether or not a transaction was from a stolen account. Often, the bank or card company will ask their customers for proof of identity before allowing them to complete a purchase. If a customer uses a stolen credit card, they must provide information to prove who they really are.
For a specific customer
The NSU is for a specific customer and includes information such as the name of the account holder, the credit card number and the billing address. The notes also include the time and date of purchases, along with the amount spent.
The law requires U.S. banks, credit card issuers and merchants to record the customer’s personal identification number (PIN). That’s for all purchases using a debit card since 2010. The requirement was for credit cards in 2015.
As evidence in civil or criminal court cases.
According to some sources, financial institutions and credit card companies issue these notes in response to a customer complaint about possible fraud. They may also be a piece of evidence in civil or criminal court cases.
NSU’s are typically for financial institutions when they suspect a compromised account. But they do not have enough proof to justify freezing the account or terminating services.
Collect on fraudulent charges or claims
In many cases, NSUs are for a merchant or vendor who attempts to collect on fraudulent charges or claims made by criminals who have taken possession of an individual’s credit card information or bank account login credentials. The NSU may also be useful for an online service provider. Or an affiliate is a suspect of collecting payments on fraudulent transactions.
For security purposes
NSU’s are often issued by financial institutions once they have closed a particular account due to suspicious activity. Also, when the institution discovers that their customers have provided false information when opening their accounts.
They may also be helpful when a person has attempted to open several different accounts. In order to obtain unauthorized access to funds from their bank accounts. Or from other institutions from which they are attempting to make purchases.
To determine signs of hacking
NSU’s can determine whether or not someone’s bank account was a victim of hacking. Or whether someone’s passport has been stolen. if someone has stolen another person’s identity or if someone has used stolen information from another individual in order to open new accounts under their own name.
Fraudulent Activity Notes (FANs)
A variation of this note is what we call Fraudulent Activity Notes (FANs). Banks and credit card companies fill out FANs after discovering suspicious activity on an account. This includes any unauthorized charges placed on the account and any time that there is unusual activity on the account.
NSUs and FANs
NSU’s and FANs can help investigators determine whether or not someone has been the victim of identity theft. They can also help them determine if a person has made purchases that they did not authorize, if someone has fraudulently obtained access to an existing account or if someone is attempting to defraud a financial institution or credit card company.