Lloyds credit card - bad for fraud, any advice?

Mattz_2

Do we know that the chip was read here or is it just an assumption? It is possible for the merchant to process the payment offline using magstripe only.

Personally, I think this payment could quite easily be fraudulent. All you need is a point of compromise where the PIN is viewed and there is a potential. The problem is, all the evidence to prove this is held by the bank and the merchant's acquirer.

clb776

can i ask what was the credit limit on your sons card? - last year (and i know it was def before april, ie easter), lloyds began to only allow you to take out 50% of your credit limit out in cash - if it was over this then perhaps this could be a point to make to them? or at least a way to get them to look into it once more? I used to work for the credit card contact centre...and you can see if the pin etc was used, did your son get a declaration and everything to sign to say it wasnt him using the card? I am suprised that they have not bothered to look into this matter properly, especially if your son did not withdraw cash on a regular basis?!?
when i worked there we were told that cash withdrawls were a maximum of £500 a day, although to be honest everyone says something different so i'm not 100% sure on this!
I think your son defo needs to seek legal advice. He should certainly not pay it if he didnt spend it as that is as good as saying he did.

bert&ernie

Mattz wrote: »

Do we know that the chip was read here or is it just an assumption? It is possible for the merchant to process the payment offline using magstripe only.

Personally, I think this payment could quite easily be fraudulent. All you need is a point of compromise where the PIN is viewed and there is a potential. The problem is, all the evidence to prove this is held by the bank and the merchant's acquirer.

Well I may be reading between the lines, but thats certainly the way it looks. Heres what the OP has said on a previous thread:

susan47 wrote: »

... The fraud team looked into it and said since it was a chip and pin, it must be his fault...

Herein lies the problem - if the card issuer says that the transaction was 'chip read', 'Chip and Pin' or whatever then who are we to say otherwise? The issuer is the only party that can prove this, yet the ombudsman and the courts seem happy just to take their word for it.

Again, I'm reading between the lines, but I think the crux of this dispute comes down to this: the bank says that the genuine card and pin were used and that this could only have happened with the connivance or negligence of the cardholder; the customers says that he did not make the transaction and neither did he allow, knowingly or otherwise, anyone else to do so.

Their word against his. Who is the ombudsman or the court to believe?

Its theoretically possible for the payment to be processed offline, but this would require the connivance of the merchant and some fairly lax processing by the issuer. i would say there is a good chance that it was actually online magstripe - especially as I don't think EMV has been fully rolled out in eastern Europe.

It all seems a little academic anyway because the only way that the OP is likely to find out is by suing the bank with all the attendant risks that this brings.

susan47

I doubt anyone will still be reading this link, but anyway my son paid up over £5k in the end, but he is still talking about going to court over it.

We think that when he made a transaction in one place, they cloned his card somehow so that it came up with another transaction in a different location at the same time. Wer'e sure it's down to technology that isn't recognised as possible by the banks. Well, it's in their interest to say it's impossible.

The fact is, he has a legitimate receipt showing he was across town buying something within minutes of this fraud at a different location too far for him to get to in no time flat.

But nobody listens, and I've been really shocked that the Ombudsman didn't even appear to read his evidence (as witnessed by their level of ignorance in correspondence).

So I suggest that you are all very, very careful who you hand your card to, and don't ever let it out of your sight, even in a restaurant that you think you can trust...

BigCraigJohn

From what I gather the ombudsman is not going to touch anything remotely complex with a 10 foot bargepole.
In my opinion the only way going to be legal action against Lloyds.
He is doing everything right ie using a credit card so hes protected yet they have not stuck to there part of the agreement.
Have a look over on the consumer action group forum, might get some advice on what grounds to take action.
Maybe Watchdog or Dom Littlewood might look at something like this. After all they are the programs that drill in the importance of using credit cards online and abroad.

HappyChappy84

I'm not sure on this but by paying the 5k isn't that like admitting liability?