Fraud notifications (MED): How WEpayments handles transactions reported as suspicious
Updated
In the Pix ecosystem, when a payer identifies a transaction they believe to be related to fraud or a scam, their financial institution can initiate a funds recovery process, as provided for by the Central Bank under the Special Refund Mechanism (MED).
Based on this request, the Central Bank’s DICT (Directory of Transaction Account Identifiers) generates violation notifications for the institutions that received the funds.
This article explains how WEpayments handles these notifications when they involve transactions received by our clients.
How you are notified about transactions reported as fraud
When a Funds Recovery process is initiated, the DICT sends notifications to the financial institutions that participated in the transactions related to the case.
If one of these transactions involves funds received by your account at WEpayments, our institution will receive the notification and begin the analysis process.
Our Fraud team evaluates each notification received in accordance with Central Bank regulations and responds to the process within the regulatory deadline.
If, after review, the notification is accepted (i.e., a refund is required), the customer will be immediately informed by WEpayments.
What happens when the notification is rejected
In many cases, after review, it is possible to conclude that there is no evidence of fraud related to the reported transaction.
In these situations, the notification is rejected by WEpayments, and no funds are refunded.
To ensure transparency with our clients, WEpayments sends a monthly report containing these notifications.
Monthly notification report
In the first week of each month, the client’s compliance team will receive a consolidated report via email containing:
a list of fraud notifications received in the previous month;
identification of the transactions involved;
the status of notifications reviewed by WEpayments.
Recommended Best Practices
Even when a notification is rejected, we recommend that clients adopt best practices for monitoring and prevention.
As a governance and security measure, we suggest:
reviewing the legitimacy of transactions carried out by the users involved;
updating or strengthening KYC (Know Your Customer) procedures;
monitoring behavioral patterns that may indicate risk or suspicious activity.
These practices help strengthen internal controls and reduce exposure to potential fraud.