Stolen Credit Card Fraud!

[MikeLierman]

S#^! This criminal has seen THIS topic on TechNibble. Hahaha! Really funny, but sucks, because he's likely going to change the drop location, phone number, his name, and email.

He says he is one step ahead..

 

[Paul Rodgers]

Doesn't matter. All phone orders should be verified with the CC issuers.

 

[ComputerRepairTech]

He may tell you he has a charity organization abroad with the address of: Mr Kwame Dade, 22 Oxford Street, Accra Ghana, West Africa.

Did he have an african accent?

 

[Computech1]

S#^! This criminal has seen THIS topic on TechNibble. Hahaha! Really funny, but sucks, because he's likely going to change the drop location, phone number, his name, and email.

He says he is one step ahead..

Oh well: At least he can read. Look at it this way: The more aggravation he gets the better.


Andy

 

[peachypc]

Wait, do I understand this right? You got scammed. But instead of you being out the money, UPS lost the money instead?

Yep. UPS lost $4400 because I had insured it, and they could not prove who they delivered it to. They went back to the "scene" and so one was there.
I merely called them after the phone call from the "real" cardholder and said that they had not received the package.

UPS issued me a check within a week for the full amount insured. (whew!)

 

[Vyper28]

Yep, when it comes to "card not present" sales, the merchant bears the burden of the loss unfortunately. If the card was present at the time of purchase you are protected.

The other downside is your merchant account company will charge you a higher rate because they view you as a risk.

http://support.authorize.net/authkb/index?page=content&id=A676

This is not true unfortunately

We were hit a couple years ago, card was present, still cost us $4600 in loss at the end of the day. We did footwork for him got to know him ect ect. He was very good, his name matched the card and he knew the PIN and everything. Turned out the name was the name of the guy whom had the wallet stolen and our merchant services froze the transactions. We were out 2 laptops and several hours of labour with no recourse options presented to us. It was our mistake because we never ID'd the guy. He never came close to appear like a scammer, and he knew the pin for the card. The cops later told us it was stolen from a family member and he was buying and selling equipment to buy drugs for his friends.

2 almost 3 years later and it is going to court but we have yet to see a dime back!

 

[tom11011]

This is not true unfortunately

We were hit a couple years ago, card was present, still cost us $4600 in loss at the end of the day. We did footwork for him got to know him ect ect. He was very good, his name matched the card and he knew the PIN and everything. Turned out the name was the name of the guy whom had the wallet stolen and our merchant services froze the transactions. We were out 2 laptops and several hours of labour with no recourse options presented to us. It was our mistake because we never ID'd the guy. He never came close to appear like a scammer, and he knew the pin for the card. The cops later told us it was stolen from a family member and he was buying and selling equipment to buy drugs for his friends.

2 almost 3 years later and it is going to court but we have yet to see a dime back!

So you are saying both the card and the person was present at the time of purchase? If so that's terrible as a merchant is not allowed to ask for ID from a customer if the card is signed nor can he refuse the sale to the customer for lack of ID on a signed card. Per visa/mc rules.

If what you say is true, it would seem then there are no seller protections of any kind.

 

[Vyper28]

The card, and the person we thought was the card holder (same name) was present. It ended up that that was not his name and he had just been using the name off the card since he had met us. The card had not been reported stolen because it was someone he knew (he hadn't taken the card yet, but he had planned to pose as that person all along until taking the card and making the purchase).

The owner of the card filed a fraud claim with the card company and our merchant services froze the money. It took... 5 months or so before they finally told us the money would not be returned as it was determined we did not do enough to ensure the card holder was who they say they were. We never asked to see I.D. we were pretty sure we weren't supposed to.

In the end, no matter how high up we went, we were stonewalled and told we have to speak to the credit card company about the fraud instead. When we spoke to them we were told they would not be refunding the money and we would have to file an insurance claim.

Insurance company says no claim until the court case has been completed since he was busted for it. End of the day, we are out the money until it magically comes back, if it ever does, which it probably never will.

 

[tom11011]

What type of insurance do you have that covers this?

 

[tom11011]

One thing that sticks out, you said "he knew the PIN and everything" what do you mean by that? A pin wouldn't really be required. Were you entering the credit card info online?

 

[Markverhyden]

Protection of that type can be added via a rider to your business insurance policy. But it will probably require some type of training as well as a audit process to make sure the employees are following procedure.

When I was at CompUSA they had coverage for bad checks as long as certain things were done. And they had to be done exactly as they stated. For instance leaving the DL issuing state off will cause it to not be covered.

 

[Vyper28]

Our insurance covered theft which this ended up being under. We just called and asked them and they said yes technically it is covered but not until we are sure we wont get any payout from a court case.

The customer had a card with a chip and pin... He came in, slid it into our machine, put in the code, and it was authorized.

Do you not have chip/pin cards where you are from...? I thought they were pretty much the norm by now.

 

[Markverhyden]

Smart CC cards are not that prevalent from what I have seen. Personally I have never had a Debit or regular CC that was a smart card.

 

[tom11011]

Smart CC cards are not that prevalent from what I have seen. Personally I have never had a Debit or regular CC that was a smart card.

That's what I was driving at, I was wondering if this might be a debit card which a different set of rules might apply.

I have not seen any smart cards/readers anywhere but I don't really pay that much attention when shopping.

 

[Markverhyden]

That's what I was driving at, I was wondering if this might be a debit card which a different set of rules might apply.

I have not seen any smart cards/readers anywhere but I don't really pay that much attention when shopping.

They are gaining. You've probably seen those Mobile "wave your thing" to pay. They now have issued smart CC so they can either use the regular MSR or the touchless RF induction technology. I've also seen some CC company advertise, might have been Chase.

The touch based ones are popular in Europe and other areas. Those are just like the CAC cards that is used by many US Federal agencies to control access to IT services.

 

[tom11011]

They are gaining. You've probably seen those Mobile "wave your thing" to pay. They now have issued smart CC so they can either use the regular MSR or the touchless RF induction technology. I've also seen some CC company advertise, might have been Chase.

The touch based ones are popular in Europe and other areas. Those are just like the CAC cards that is used by many US Federal agencies to control access to IT services.

But would a different set of fraud rules apply? It sounds to me this person followed the merchant rules but still got stuck with the loss.

 

[Vyper28]

Up here virtually every credit card is chip and pin. The old ones are almost non existent. It was a Visa card.

 

[MikeLierman]

He stopped for a while but he's at it again. Updated the OP. A computer business in Dallas, Texas, is out roughly $3,000. He changed his name and email. Phone number still the same.