Have you ever been scammed and then applied for a chargeback with your credit card issuer only to get your money back sooner than expected? Well, we at First Option Recovery have been receiving many emails regarding chargeback scam (including PayPal chargeback scam) and hence, decided to update our viewers with the most unjustified cybercrime of all time. Our firm, dedicated to helping customers 24*7 across the globe, has been the best fund recovery group in the world for over a decade now. With over $19 million recovered so far from 3000+ cases, our extraordinary team of over 120+ attorneys, bankers and lawyers have been. They’ll be at the forefront of the fund recovery industry shortly.
A select few groups of intelligent fraudsters have taken this to their advantage and started to use chargeback scams to secure a refund fraudulently. These consumers illegally start a transaction dispute with the bank instead of contacting the merchant directly for a refund. Often, the banks issue the repayments, and the consumer gets the item for free.
Some of the complaints among these chargeback scams include not being delivered or defective. Other not so common issues include the transaction not being authorized or not allowing cancellations despite placing a cancellation order before being dispatched.
First Option Recovery did an entire case study on the situation. It assessed different buyers’ conditions to determine what goes inside the mind of such fraudsters involved in chargeback scams. The reality could be pretty shocking as the buyer’s intention in most cases is to get the item for free. Other options include the change in the buyer’s opinion once the payment processes or the buyer intending to use the product for some time and eventually leaving it aside.
Owing to such mishappenings, many banks and companies, including PayPal, have ramped up their chargeback scrutiny processes and have begun verifying information twice before finally issuing a chargeback. At First Option Recovery, we receive hundreds of emails every day about these new chargeback scams that have been happening daily. We have recently ramped up our customer support and reply to these queries quickly. Despite such measures, the reasons why consumers are still successfully executing a chargeback are many. Let’s discuss a few among them.
LACK OF SUFFICIENT TECHNOLOGY
Technology has seen a rampant boost in the previous decade with increased machine learning and artificial intelligence. However, there has still been a significant lack of technology for finding out chargeback scams. E-commerce is the easiest target that most people end up falling to as technology is still quite limited in this field. Credit Card chargeback scams are still rampant, with unauthorized transactions still topping the list and consumers use it to their advantage. Hence, filing for such fraudulent transactions is relatively easy. Banks owing to their reputation that they have to live up, to end up issuing these, and as a result, these chargeback scams keep on increasing.
First Option Recovery has always been an avid supporter of all the world’s technological advances and believes that the federal commission should create a team to look into this matter and improve these credit card trades’ technological advances.
INACCURATE TRANSACTION DISPUTES
When a consumer requests the inaccuracy of the product delivered to him, the banks provide a valid reason code based on the information that one is going to provide. Unfortunately, many merchants use the reason codes without actually getting to know more about the issue.
These merchants don’t investigate the chargeback scams because e-commerce frauds are often unrecognizable. When it comes to credit card history, consumers who have an exceptional track record conduct these. Even their CIBIL scores are intact, and as a result, the banks believe that the customer is using an honest approach. However, we at First Option Recovery have a thorough investigation procedure of whatever case we undertake. Hence there is no chance of impersonation.
As long as the merchants don’t decipher the issue’s actual cause, the consumers will keep implementing inefficient prevention tactics.
Many companies are now working on technology to find out the rationale behind such reason codes, which will help merchants decipher and prevent such a type of chargeback scam. The technology is still in the initial stages, and as long as it gets a proper response, rest assured, we can only go by the guessing game.
NO UPDATES REGARDING CHARGEBACK REGULATIONS
First Option Recovery has been in the business for over a decade. While dealing with thousands of credit card chargeback scams, we have noticed that there has been little change in credit card regulations over the past decade or so. We have been a firm advocator introducing new chargeback regulations to minimize these chargeback scams.
Very few know that chargeback regulations and their introduction before technology took the forefront in finance. Newer fraud detection methods are developing, but chargeback processing regulations should receive sufficient attention. Unfortunately, many chargeback rules are yet to update in this fast-paced era of technology. The gap between the chargeback processes and sales will keep growing if these regulations don’t implement in the payment industry.
Also, managing a chargeback scam can be a herculean task as it requires significant money and time. The two most essential resources are something very few are willing to compromise on, and hence many are unfortunately still banking on the long-term repercussions.
HOW TO AVOID CHARGEBACK SCAMS? WHAT TO DO WHEN YOU LOSE YOUR MONEY?
Chargebacks have never been an ideal solution to get your money back to you. A better way is to let the experts do the job. First Option Recovery, being experts in fund recovery have had a presence in over 22 countries regarding such issues. With a team of 120+ attorneys and a decade of experience backing them, we are hell-bent on eradicating scams like chargeback scams or similar ones like pharmaceutical scams or weight-loss scams across the globe. If you think that you’re preyed on by cheats, do send us an email, contact us via our number or fill up our consultation form, and we will get back to you as soon as possible.