When someone steals another person’s payment information and uses it to make unauthorized transactions or purchases, this is known as payment fraud. When the cardholder or owner of the payment information notices that their account is being used for transactions or purchases that they did not authorize, they file a dispute. This is where the problem for business owners starts because they will have to resolve the disagreement, pay multiple penalties such as chargeback costs and investigation fees, and lose time and resources in the process. Customers can sometimes incorrectly initiate a chargeback, claiming they never received the product. This is a type of money scam as well.
If merchant account providers, such as banks, become increasingly wary about being involved in a company’s transactions, the company’s merchant account may be deactivated to reduce the risk of fraud. It’s simple to see how payment fraud may be a headache for business owners.
Reporting a Payment Scam
This is an emergency if a crime is being committed or if you or someone else is in immediate danger. Immediately dial 999 to contact the police.
Make sure you report any scams you’ve been the victim of. You may not always be able to get your money back, but you may be able to mitigate the harm and take action to prevent it from happening to you or others in the future.
Scams are illegal, and they should be reported to Action Fraud, the national fraud and cybercrime reporting center (0300 123 2040). You can also report phishing schemes or computer viruses you’ve received but didn’t fall for. Scammers send bogus communications to you by text, email, or social media in order to get your personal information, such as bank account numbers or passwords, or to offer prizes in exchange for a charge.
The Citizens Advice consumer helpline can also be used to report some scams to Trading Standards (0808 223 1133). Trading Standards investigates complaints where businesses have acted illegally or unjustly, such as pressuring you into buying something you didn’t want or failing to properly complete work on your property.
Getting support
It can be quite unpleasant to be the victim of a scam, but help is available. Victim Support is a non-profit organization that helps victims of crime and terrible incidents. When you report a fraud to Action Fraud, they’ll ask if they may pass your information on to Victim Support, who will contact you to give free emotional and practical assistance. Victim Support can also be contacted directly (0808 168 9111).
Talking to family and friends can also be beneficial, or you can call Samaritans for confidential emotional assistance on 116 123.
Avoiding Scams In The Future
For some basic advice on keeping your money and personal information safe, check out our material on identifying and avoiding scams. Be mindful that scammers may target people they know who have already been victims of a scam. They may claim to be an organization that can assist you in recovering your funds in exchange for a fee up ahead. Genuine law enforcement agencies would never charge a fee to reclaim your money.
Friends Against Scammers is a non-profit organization that teaches individuals how to protect themselves and others from scams. If you’ve been scammed and want to help, you may join up to be one of their Scam Marshals online.
Getting Your Money Back
If you’ve been duped, you won’t always be able to get your money back. If you paid for something using a credit card, you might be more protected. If you suspect you’ve been duped into disclosing personal or banking information, or if you see questionable activity on your account, contact your bank right once. You can also employ fund recovery services, such as EzChargeBack’s, to get your money back in its whole.
