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 a lot of emails regarding chargeback scams and hence, decided to update our viewers with the most unjustified cybercrime of all time. Our firm, dedicated to helping its customers 24*7 across the globe, have 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 and will be at the forefront of the fund recovery industry in the near future as well.
There are a select few groups of intelligent fraudsters who have taken this to its own advantage and started to fraudulently use chargebacks scams to secure a refund. These consumers illegally start a transaction dispute with the bank instead of contacting the merchant directly for a refund. Often the banks end up issuing the refunds and the consumer gets the item for free.
Some of the complaints among these chargeback scams include items not being delivered or defective. Other not so common issues include the transaction not being authorized or not being canceled in spite of placing a cancellation order before being dispatched.
First Option Recovery did a full case study on the situation and assessed the situations of different buyers to find out what goes inside the mind of such fraudsters involved in chargeback scams. The reality could be quite 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 was made or the buyer intending to use the item for some time and eventually leaving it aside.
Owing to such mishappenings, a lot of banks and companies including PayPal have ramped up their chargeback scrutiny processes and have begun verifying information twice before finally issuing a chargeback. We, at First Option Recovery, are receiving hundreds of mails everyday about this new chargeback scams that have been happening on a daily basis. Recently we have ramped up our customer support as well to reply to these queries at a quick succession. In spite of such measures, the reasons why consumers are still successfully able to execute 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 the increase in 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 the majority of the 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 fraud transactions is quite easy. Also, 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 technological advances of the world and also believes in the fact that the federal commission should create a team to look into this matter and improve the technological advances of these credit card trades.
Inaccurate transaction disputes
When a consumer makes a request regarding the inaccuracy of the product that has been delivered to him, the banks provide a valid reason code based on the information that one is going to provide. Unfortunately, a lot of merchants end up using the reason codes without actually getting to know more about the issue.
Also, these merchants don’t try to investigate the chargeback scams because e-commerce frauds are often unrecognizable as these are conducted by consumers who have an exceptional track record when it comes to credit card history. Even their CIBIL scores are intact and as a result, the banks simply believe that the customer is using an honest approach. We at First Option Recovery, however, have a thorough investigation procedure of whatever case we undertake, hence there is absolutely no chance of impersonation.
As long as the merchants don’t decipher the actual cause of the issue, the consumers will keep implementing the inefficient prevention tactics.
A lot of companies are now working on technology to find out the true rationale behind such reason codes which will help merchants decipher and prevent such chargeback scams. 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 over a decade and while dealing with thousands of credit card chargeback scams, one thing that we have noticed is the fact that there has been absolutely negligible change in credit card regulations over the past decade or so. We have been a firm advocator of the introduction of new chargeback regulations so as to minimize these chargeback scams.
Very few know that chargeback regulations were introduced before technology took the forefront in finance. Newer methods of fraud detection are developed but chargeback processing regulations are not being paid heed to. Unfortunately, a lot of chargeback rules have yet to be updated in this fast-paced era of technology. The gap between the chargeback processes and sales will keep on growing if these regulations are not made to the payment industry.
Also, managing chargeback scams can be a herculean task as it requires significant money and time. The two most important resources are something very few are willing to compromise on, and hence many are unfortunately still banking on the long-term repercussions.
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 the field of 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 chargeback scams across the globe. If you think that you have been duped, 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.