What is a chargeback?
Chargebacks refers to requesting a refund from a vendor for goods and services that a person has not received. Online purchases using credit cards are considered to be chargebacks.
Many of the common online frauds work through several techniques, including: Copies of customer's credit card details, usually obtained in a phishing attack, The fraudsters pose as the merchant or company that the credit card is issued to.
Pressurise the credit card companies to suspend or even cancel a person's credit card account
A phishing scam often consists of fraudulent emails or texts, purporting to be from the actual credit card company.
How can you identify a scammer?
Punters are encouraged to look for certain warning signs that may indicate they might be targeted by a scammer. One such warning sign could be a statement that says: “I will refund your money for each purchase if you send in my bank account and information.”
Although it may sound like a winning proposition, such an offer usually leads to a scam because the fraudster can never really promise the return of the money.
Online scammers usually start off by asking for their victims' personal details and bank details in order to be able to refund their money for each purchase.
When the transaction is finally complete, the scammer will immediately order goods and pocket the money.
What to do if you're the victim of a chargeback scam
Stay alert to any unusual purchasing or credit card statements.
Contact your bank right away, if you have one.
When you're being scammed:
Keep in mind that the scammers are getting you to part with your money, but they're not stealing it;
Know your rights, and know exactly what you can do to be protected against fraudulent charges.
Report it to the credit card company you originally used to buy the item if you're the victim of a fraud;
Try to contact the website or the merchant account for additional information;
Watch out for cheap, counterfeit products.
The importance of knowing and understanding our rights and responsibilities in today's digital age.
On April 21, there will be a seminar at the St. Vincent de Paul Center, which will inform residents on the topic of how to protect yourself online.
"When you're dealing with a scammer, it may be a relatively small amount, so it makes sense to hand over the money because it's cheaper to pay the fee than the fees for getting your money back," said Assistant District Attorney Christopher McCoy.
At the seminar, the St. Vincent de Paul case manager will explain what to look out for, how it works, how to recognize the signs of a scam and how to file a complaint if you have been a victim.
The scammer will also describe the options available to them and the fees involved.