Credit card fraud and credit card chargeback issues
Online Fraud Investigations
In many of the inquiries we have conducted, we often find that when fraud or deception is involved, the buyer has previously engaged in fraudulent online purchases. These buyers attempt to recover funds through their credit card company or PayPal to avoid payment. In most cases, the seller faces a straightforward attempt to fraudulently deprive them of payment for goods they lawfully delivered.
We frequently gather enough evidence to confirm that the individual has committed similar fraudulent activities in the past and successfully escaped consequences. However, when these fraudsters encounter an organization like ours, their illicit activities quickly unravel.
Resolving Fraudulent Claims
From our experience, most fraudsters realize that when we start investigating their personal details and history, it’s wiser to seek an amicable resolution. This avoids the escalation of costs, which can otherwise include not only the initial loss but also our investigation fees and additional costs associated with the chargeback process.
If a resolution is not reached early, the situation can lead to higher costs and may require the involvement of debt collectors or legal action through the courts.
The Rise of Online Fraud
Fifteen years ago, this type of fraud inquiry was a small part of our business. However, with the rise of online shopping, the potential for fraud has increased. We specialize in investigating cases where individuals attempt to retain goods or services by using false payment methods like fraudulent credit cards or PayPal accounts. They often claim non-delivery of goods or allege product defects without any prior contact with the seller to resolve the issue—raising immediate red flags.
If a fraudster cannot show that they tried to resolve the issue with the seller, it usually indicates a pattern of deceptive behavior, which we can often confirm through further investigation.
Preventing Fraud with Credit Card Verification
The use of unauthorized cards has decreased due to credit card companies implementing security measures, such as checking ZIP codes and sending transaction alerts via text messages. However, one persistent issue is buyers claiming they were unaware of purchases. In such cases, we ask whether a household member may have made the purchase. If they deny this, we request the IP address from which the purchase was made. We also send a forensic email to the buyer, tagged to track their IP address. If this matches the purchase IP, we can easily recover the funds.
Turning Civil Disputes into Criminal Cases
Many credit card disputes are initially treated as civil matters. Our expertise lies in digging deeper into the buyer’s history to uncover patterns of fraudulent behavior. By examining their credit file, banking history, and past chargeback requests, we often turn a routine civil dispute into a criminal investigation. If evidence of persistent fraud is found, we provide this to law enforcement. In some cases, we discover the perpetrator has a criminal record for fraud, strengthening the case.
Pursuing Legal and Debt Recovery Actions
Even if law enforcement does not pursue the case, we can still proceed through debt recovery or the Small Claims Court. Once we identify the perpetrator’s identity and location, they often negotiate to prevent further costs. If they refuse to pay a judgment, we can apply for an attachment of earnings order, ensuring payment is deducted directly from their wages.
For example, in a recent California case involving a $500 mobile phone purchase, the perpetrator refused to settle early. After our investigation, court fees, and collection costs, they ended up paying $3,400. Moreover, their employment was terminated when their employer learned the facts of the case.
Data Trails and Online Investigations
Online fraud leaves a data trail, such as IP addresses. By combining our forensic email system with other investigative methods, we build a solid case against the fraudster. Our access to one of the world’s largest databases of domain and IP profile information allows us to assist governments, corporations, and law enforcement in bringing fraudsters to justice.
We specialize in tracing email addresses, identifying social media activity, and linking fraud across platforms like eBay and Amazon. By uncovering a history of fraudulent claims, we often escalate what appears to be a civil matter into a criminal case.
Penalties for Credit Card Fraud
Penalties for credit card fraud vary by country. In the United States, punishments range from fines and jail time in county jails to, in serious cases, federal charges with sentences of up to 20 years in prison for fraud crossing state lines or involving government entities. These severe consequences often lead perpetrators to settle claims rather than risk prolonged legal battles.
Our Expertise
Investigation Network has a wealth of experience handling over 2,000 cases of internet-related crime, including credit card fraud, online scams, and auction fraud. Our team specializes in uncovering hidden fraud, tracing email addresses, and resolving cases involving platforms like eBay, Amazon, and PayPal.
Our services include:
- Tracing Anonymous Email Senders
- eBay & Internet Auction Fraud Investigations
- Online Fraud Inquiries Involving Credit Card Payments
- Cyber-Stalking & Email Harassment Identification
- Internet Scam & Fraud Investigations
- Internet Profiling & Online Activity Checks
- Computer Forensics & Data Recovery
- Celebrity Threat Assessment & Management
Case Study Example
In one recent case, a buyer filed three separate credit card chargeback claims, unaware that two purchases were from different outlets of the same company, and the third was from one of their distributors. We discovered that one item had been resold on eBay, and another had not even been received by the buyer at the time of the claim. This allowed us to file a fraud complaint with the local police, who were already aware of the buyer's previous fraudulent activities. The perpetrator was arrested, found guilty, and sentenced accordingly.
Conclusion
Online fraud, whether through credit card abuse, scams, or deceptive purchases, carries serious consequences. Fortunately, with today’s technology, every online activity leaves a data trail. We specialize in uncovering these trails, turning seemingly civil matters into criminal investigations, and working with law enforcement to bring fraudsters to justice.
If you are a victim of online fraud, credit card scams, or related crimes, contact Investigation Network. We’ll help you uncover the truth and resolve the issue quickly and efficiently.
For more information, visit Fraud Guides, a comprehensive resource for reporting fraud in the United States, with specific guidance for states like California, Florida, and New York.