What is a Chargeback Scam?
A chargeback scam is when a credit card holder is tricked into buying something from a fake website (often via email) and has his or her credit card charged a fake amount. This can happen when a legitimate company runs a technical glitch and instead of letting the customer know, they instead change the order.
A typical example of a chargeback scam is when someone tries to order a cellphone at the online store but the transaction is denied. As a customer is being tricked and losing their money, the person is tricked into completing the transaction by confirming the order with the final and unexpected charge. They are told that they must send the money as there has been a system error and then shipped the phone.
How does Wire Recall Work?
Wire Recall is not to be confused with a rebate scam. It is a legitimate brand new product that they are selling. For example, when you get a call from your internet provider offering you a Wire Recall.
The caller will tell you that you have been billed for an amount that exceeds your monthly charges and can you please pay the sum using either your credit or debit cards or via any other means. They will also advise you that a discount will be applied to your account after you make the payment.
They will ask you to pay using your debit card as the fee will be in dollars (or pesos if you are located in Mexico). If you are abroad, the caller will ask you to pay using your credit card. They will tell you that the discount will be applied in the near future once the funds are sent to them.
Ways to Avoid Wire Recall
There are ways to avoid these scams. Here are a few suggestions.
Safeguard your personal information: Do not provide any financial information or other personal information to any unverified entities.
Do not provide any financial information or other personal information to any unverified entities. Stay vigilant: Be on guard for scam emails, phone calls or even in-person interactions. These scams are always evolving. Keep in mind that almost anyone can operate a scam using a Google search.
Be on guard for scam emails, phone calls or even in-person interactions. These scams are always evolving. Keep in mind that almost anyone can operate a scam using a Google search.
What to Do if You Receive a Wire Recall Email
You must understand that if you receive an email or phone call from someone saying that your eBay account has been compromised and your eBay account will be closed if you do not call them back with the information that they have requested, you must know it is a scam. A wire transfer request on your behalf is also a scam and it will never come from your email address and it will never be requested via the eBay site. It is one thing to receive an email stating that your PayPal account will be closed if you do not call someone back. It is another thing to receive an email or phone call stating that your PayPal account will be closed if you do not call someone back. It is equally bad to receive such an email on your eBay account.
Being Careful in General
The scam artists are well aware that consumers tend to be more at risk in busy traffic and with children or elderly people. Avoid placing yourself at these locations as they are prime targets for fraudsters.
When heading to an ATM or using a credit card for online transactions be aware of how quickly it is replaced. The issuers and credit card companies that issue such cards do not replace the cards in any fast manner and they instead let the customers have to wait until their investigation on the situation has finished. In some cases the cards may be lost or stolen which could hamper you from getting your money back. The issuing companies should be more careful in releasing these cards to credit card holders or have the cards made harder to replicate.