How do Credit Card companies investigate fraud?

Get credit card fraud help: For victims of credit card fraud and identity theft, and those that can help.
3 posts
Posts: 1
Joined: Thu Dec 10, 2009 7:23 pm
Location: Nebraska

How do Credit Card companies investigate fraud?

Postby gregton » Thu Dec 10, 2009 7:33 pm

How do Credit Card companies go through the process in which they investigate fraudulent credit card charges? Do they go to the actual scene of the crime and review the video tapes? How are most credit card fraud offenders caught? What is the minimum amount of money spent for the cc companies to launch this type of investigation. I need this information for a school economics paper, and i couldnt find the info anywhere else.


Centurion Member
Centurion Member
Posts: 707
Joined: Tue Sep 22, 2009 1:15 pm
Location: Arizona

Postby DoingHomework » Fri Dec 11, 2009 5:21 pm

In many cases there is no investigation. They simply reverse the payment made to the merchant and it is up to the merchant to challenge it and prove teh charge is legitimate. They also cancel a card with fraudulent charges associated with it. I suspect an actual investigation is only done in situations where there is a widespread fraud with thousands of cards or transactions involved. In those cases they will gather some evidence electronically then turn the investigation over to the police of federal authorities.

The credit card companies are not law enforcement agencies so their ability to subpoena evidence and prove chain-of-custody in court is limited. That means they will let the authorities do the true investigatory work.

It would be difficult for anyone to provide an accurate estimate of costs. The cost to reverse a charge or cancel a card, issue a new one is probably only pennies. But the card companies have an interest in making it appear very high so that in the rare instance they can recoup expenses it is a lot. You are likely to see estimates that fraud costs XXX billions a year etc but those are undoubtedly inflated.

User avatar
Green Member
Green Member
Posts: 14
Joined: Sat Feb 27, 2010 11:14 am
Location: Texas

Postby phanio » Sat Feb 27, 2010 11:52 am

As stated - they simply reverse the charges to the you and the merchant - the merchant then has to call up and complain or prove that the charge was yours.

Just make sure you provide all that you can to show that it is not your charge. Then, once all is collected - from you and the merchant - someone in the company will review and make a decision - if the decision goes against you - you will see those charges back on your account.
Business Loans and Capital Sources

Return to “Credit Card Fraud”

Who is online

Users browsing this forum: No registered users and 2 guests