Fraudulent Transaction

Lungman · 1 November 2005 at 12:10PM

Checking a recent statement I noticed a transaction that I never made for a considerable sum of money (£1689.80).

I immediately contacted the credit card company (Goldfish) and completed the relevant disputed transaction forms.

Initially they credited the amount back to our account, but since then we recieved another letter saying:

"the transaction was undertaked on a secure internet site, which required security checks only known to myself and as so were therefore have no charge back rights through the Mastercard charge back system in order to pursue the claim."

"Whilst we sympathise woth your dispute, we have no alternative but to redebit your card and now advise you to continue this dispute with the merchant directly".

I was livid and wrote back explaining I had never made the transaction and had no idea who the merchant was (on the statment it just was listed as British). I also cancelled the direct debit (as I paid it off every month in full), and have paid the next months statement by cheque minus the disputed amount and interest.

They have since sent out another letter basically saying what they said earlier, but have said the transaction was through British Airways.

Not sure where I stand on this.

Any help would be gratefully received.

Galstonian · 1 November 2005 at 12:21PM

Dispute it again through their official processes so that you are not currently held liable. Send written confirmation of this preferably by recorded/registered delivery. Ask them to prove that you made the transaction, have a read of this:

http://www.financial-ombudsman.org.uk/publications/ombudsman-news/46/46_plastic_cards.htm

Especially:
if the card issuer believes that the cardholder carried out the transactions, or authorised someone else to do so, then we would expect the firm to provide us with the reasons for that belief, and any supporting evidence.

If you get no joy contact the ombudsman who should be able to help. I would also contact the police who will probably be reluctant to give you a case number but persevere, if nothing else it lets Goldfish know you are serious.

If the transaction was with BA then surely it was for something travel related and if that is the case further information on the ID of the travellers is held by BA.

grumbler · 1 November 2005 at 2:05PM

I am sure you will get refund in the end.
Just want to give an advice so you can save time and nerves in future:

1. Paint over the 3-digit CVV number on the signature strip with permanent black marker. It is still readable after this, but not for other people around you in shops. This number is used only for telephone and internet purchases.

2. Cover 8 digits in the middle of the 16-digit card number with a piece of PVC electric insulation tape.

I've done this with all my cards. No problems at shops and ATMs.

Have a read of this thread: just had this warning from my bank

moneyuser · 1 November 2005 at 3:30PM

grumbler wrote:

1. Paint over the 3-digit CVV number on the signature strip with permanent black marker. It is still readable after this, but not for other people around you in shops. This number is used only for telephone and internet purchases.

I may be being dumb here but how can you read it when it's covered in black marker?

grumbler · 1 November 2005 at 3:41PM

moneyuser wrote:

I may be being dumb here but how can you read it when it's covered in black marker?

Check your cards. This number is not just printed, but impressed. The only exception I know is Amex where this number is on the front side and can be hidden with use of piece of insulation tape ...

moneyuser · 1 November 2005 at 3:47PM

Doesn't seem to be "very imprinted" to me, checked 3 cards. I will try it on an old card and see

BWZN93 · 1 November 2005 at 6:53PM

Its also worth shredding all reciepts - not all block out some of your card details, and I was able to find pretty much all of my cc info from 3 reciepts from different retailers, some block out the beginning of the pan number, some the last few numbers etc.

Jo xx

Lungman · 2 November 2005 at 9:31AM

Thanks for the replies.

I'll definitely be following it up Galstonian, but its handy to know about the ombudsman route if I don't get any joy form Goldfish.

Grumbler what colour is the PVC electric insulation tape (after this scare I will definitely be upping the security of my cards). My cards don't have the CVV code imprinted but i guess you could use the tape on it and just peel it back when you need the CVV code

I have for some years now shredded statement and reciepts although I had only been doing it on those reciepts with the full number on (hadn't noticed some retailers block out different parts of the number - thanks jw1096).

I still can't understand why they can't get more information from British Airways about the transaction, surely address details would need to have been given?

grumbler · 2 November 2005 at 10:25AM

Lungman wrote:

...what colour is the PVC electric insulation tape (after this scare I will definitely be upping the security of my cards). My cards don't have the CVV code imprinted but i guess you could use the tape on it and just peel it back when you need the CVV code

I use black or white tape.
CVV number: you can even destroy it (or paint it over) on a card and keep it in some other place - notebook, mobile phone, organiser, ...

I still can't understand why they can't get more information from British Airways about the transaction, surely address details would need to have been given?

They can. They just don't want to. It is their job, not yours. 100%
I can't find full T&C on Goldfish website, but Goldfish is part of Lloyds TSB. Typical clause from Lloyds TSB T&C is:

12.2 You will not have to pay us anything for unauthorised use of your Card account unless we can show that you gave someone your Card (or details of it), you have not used reasonable care to protect the Card account or have acted fraudulently. In this case, you will be liable for all use of the Card before you give us notice under the above condition. You will not have to pay us for unauthorised postal, telephone or internet Transactions made by someone other than you or an additional cardholder.

Reaper · 2 November 2005 at 10:51AM

...unless we can show that you gave someone your Card (or details of it), you have not used reasonable care to protect the Card account or have acted fraudulently.

I suspect this is their angle. They will claim that because of the web site security you either made the transaction or negligently revealed your credit card details to others.

However these T&C are not legally enforceable according to this article, a fact worth pointing out to them if that is the approach they take.

As the transaction is for BA it suggests it was used for tickets. Tracking down the thieves should be very easy as they would have to book the flights in their real names (unless they had fake passports too).

Lungman · 2 November 2005 at 1:34PM

I guess they will be trying their utmost to fob me off, but armed with the knowledge you guys have given me I can make sure I'm not going to end up paying for a transaction I never made.

That's why this site is so brilliant, you get to know the information that "they" don't want you to have, giving you the confidence to say actually this is your responsibility not mine!

Thanks alot

I'll keep you posted with their replies.

Fraudulent Transaction

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