If you are the victim of an online Binary Options, Forex, CFD, or Crypto trading scam, you’re probably assuming that a fraud chargeback is the way to go. After all, you were defrauded. Right? Wrong. Let me explain. First, let us address a fraud chargeback and how it actually works.
What is a fraud chargeback?
Let’s say that you are reviewing your credit card bill one month and you notice a charge that doesn’t look familiar. Then, you check your receipts and you confirm what you already knew; that you did not authorize that charge. You are the victim of credit card fraud. With bated breath, you call the number on the back of your card and you report the aberration. The helpful customer service agent explains to you that you are protected against activity like this and they will open a dispute on your behalf. Consequently, the money is returned to your account. Since you did not authorize the charge, the merchant will be unable to prove that you did (with a delivery receipt or your signature) and the money will remain with you. Case closed.
What if the product was faulty?
So that is a typical credit card fraud case. Not so complicated. Right? But let’s take another example. What happens if you place an order for an item and the item does arrive, but it isn’t as you expected. Perhaps it is an article of clothing and it arrived with a tear. So you call the merchant and you inform them that you’d like to return it. Furthermore, that you’d like a full refund. Now, if they are on the up and up, they will agree to this. But what if they aren’t so honest or responsible. They may be unwilling to take responsibility. Are you a fraud victim in this case? That is not so clear. If they deliberately sent you damaged goods then you may be a victim of fraud, but that is not how the credit card companies see it.
Why this is not a fraud chargeback
According to Visa & Mastercard rules, the above scenario is not a fraud dispute. If you open a dispute, the burden of proof will fall on you to prove that you did not receive what the merchant agreed to send you. This is a bit more complicated.
In the case of an online trading scam, it is actually exponentially more complicated. Why? Because not only did you authorize the charges on your card, the scammers see to it that they provide you with no prof of wrongdoing. They perform all of their mischief via telephone so there is no written record. This is a deliberate tactic they employ so you are left helpless and unable to open a fraud chargeback or any type of dispute.
This is the niche in which wealth recovery experts like MoneyBack Hero operate. We are experts at convincing the banks that despite sparse evidence, we can compile enough evidence to make a successful claim.