posted on July 11, 2013 06:16:37 PM new
Good point and something I should add to my system.
However, a much better way to cut fraud is even more simple. Government intervention into chargeback fraud. Obviously, years and years of credit card companies allowing this problem to gain momentum isn't fixing the problem in any way whatsoever. In fact, I would go as far as to say that these credit card companies are simply looking the other way and enable card holders to commit friendly fraud.
I have only used a charge back in extreme circumstances. The last being during the fall before our holiday rush. We had purchased a large order from a wholesaler. Their advertising suggested the items were Made in the UK, but when they arrived they were labeled Made in China. The quality was inferior and I simply couldn't justify selling these items to our customers. When I attempted to contact the company, they gave me a runaround, then ignored me even when I called their HQ in London. So, I filed a chargeback. I ended up canceling the chargeback after they finally came around after 2 weeks of dealing with it.
The other time was when I had my car fixed at a garage I never did business with before. The car broke down while I was away, so my girlfriend took it into the local garage. They charged her 30% more than my Volvo mechanic did for a starter, then within 50 miles the new starter went out. They wouldn't even tow it in. So, I filed a charge back, took the car to my mechanic and dropped off the starter they had replaced. The owner called, apologized and said he fired his mechanic because it wasn't the first time he treated a customer poorly. Unfortunately, it was my only recourse because the mechanic wouldn't even contact the owner regarding the problem.
posted on July 12, 2013 07:31:35 AM new
Govt and govt agency do get involved -USPS fraud Dept,FBI,local police,Internet crime investigation,but they are just overwhelmed with the sheer numbers of cases,there is just not enough manpower to tackle all of them.
Thats why you see venue providers such as AMZN and Ebay getting involved.
posted on July 12, 2013 08:11:46 PM new
And that is exactly why legislation to stop credit card companies from allowing "friendly fraud" to continue is what is needed.
It gets worse each year. which tells me that credit card companies have no incentive to prevent this type of fraud.
The fact is that credit card companies follow federal laws, but the individual who abuses the loophole of chargebacks doesn't really have to worry unless their crime is quite significant. Why? Because as you said, investigators are overwhelmed.
Focus on the big picture... the banking industry. That alone would practically eliminate the amount of friendly fraud and free up investigators to look at more serious crime.
