'Honest' Credit Card Scam Hits Ecommerce Merchants

[mandy]

Warning of a new kind of credit card crime that confounds all the usual verification methods is given ...today.

Merchants foot the bill
The latest scam, which is fast gaining ground, is known as Customer Denial Fraud. It’s hard to beat because the cheats are perfectly valid credit card holders and the personal details when ordering over the Internet and in other transactions when the card is not actually present are of course correct. The scam starts when the credit card company’s statement arrives after the goods have been delivered and the credit card customer denies any involvement. Internet or other fraud insurance that most companies provide is then invoked, with the result that the value of the order is charged back to the merchant.

full article: http://www.channelregister.co.uk/2005/11...ial_fraud/

[amy]

We had something similar happen with a couple of losers who used credit cards through PayPal.  We had proof of delivery, and so we filed mail fraud complaints against both losers after they tried that scam.