Suspicious activity refers to any transaction or account behavior that deviates significantly from your usual transaction patterns. Financial institutions monitor account activities to detect any anomalies that could indicate fraudulent activity.
Imagine your Kuda account is like your spending habits fingerprint. Transactions that fall outside this usual pattern could be flagged.
For example, if you typically use your Kuda for small purchases like airtime or cab rides, then suddenly transfer a large sum and send it all out right away, that would be a major deviation and trigger a security check.
Example: An Unusually Large Transaction
Consider a scenario where your account activity typically involves saving money and making occasional small purchases, such as buying airtime or paying for a cab ride. If you suddenly deposit a million naira into your account and then transfer the entire amount out within five minutes, this would be highly irregular compared to your usual activity. Such a transaction would be flagged as suspicious because it is atypical and raises concerns about potential fraud or misuse.
Do Accounts Always Get Blocked for Suspicious Activity?
Not all suspicious activities result in an account being blocked. Financial institutions understand that unusual transactions do not always signify fraudulent behavior. Kuda understands that spending habits can change. So, if they see something strange, they might reach out by phone or email to confirm everything is alright.
However, when it comes to protecting your money, Kuda errs on the side of caution. Even a hint of suspicious activity can trigger a temporary block to prevent potential fraudsters from accessing your account.
Handling Unusual Activities
When unusual activity is detected, the typical first step is to contact the account holder via phone or email to verify the transaction. This proactive communication often resolves any concerns without further action. However, if the suspicious activity strongly suggests potential fraud, such as the unauthorized use of a debit card or compromised account details, the account may be temporarily blocked to prevent financial loss. The priority is always to protect the account holder's funds, even if it means taking precautionary measures.
Specific Reasons for Blocking an Account
Certain actions are more likely to result in an account being blocked due to the higher risk of fraud. These include:
- Frequent Card Transactions: Adding money to your account using a card multiple times in a very short period, such as six or more times within ten minutes.
- Mismatched Card Details: Transferring funds from a card where the card details do not match the account holder's name.
- Geographic Discrepancies: Adding money from a card issued in a different country than where the account holder currently resides.
- Unknown Device Sign-Ins: Logging into your account from an unfamiliar device. If this sign-in was legitimate, you can unblock your account through the app by following these steps: open the Kuda app, select "More" and go to "Account Details" and scroll down to select "Remove Restriction" and enter your 4-digit Transaction PIN.
Steps to Unblock Your Account
If your Kuda account gets blocked, you will receive a message with instructions on how to proceed. Typically, you will be asked to contact customer support via phone or email. During this communication, you will discuss the events that led to the blockage and provide the necessary information to verify your identity and transactions.
Involvement of Central Bank: In some instances, the situation may require reporting to the Central Bank. If this occurs, the decision to unblock the account is no longer within the financial institution's control and must be handled according to regulatory requirements.