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IamLars t1_iurivbr wrote

Report it to your credit card company. They will investigate.

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gamerdudeNYC OP t1_iurjght wrote

I was actually alerted by Bank of America, they’re on top of it

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bobomerk99 t1_iurw4ay wrote

damn! How'd you find out it was employees doing it?

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nerdiestnerdballer t1_iuropx2 wrote

you did share this information with bank of America?

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gamerdudeNYC OP t1_iurqt41 wrote

Yes I’ve reported it all to BoA, card cancelled, transactions flagged as fraudulent, getting a new card sent out.

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cookiesarenomnom t1_iusxx30 wrote

They don't. If it's under a certain amount, they don't investigate. They refund your money, send you a new card and write off the loses. It's far cheaper and quicker than investigating for a measly $500(from their perspective). They only investigate when fraud happens in the thousands of dollars.

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ip3p t1_iuthxw1 wrote

They don’t investigate because it’s not their money to lose. Fraudulent charges for online (card not present) transactions end up being covered by the merchant who accepted the card, the banks don’t cover anything in that case.

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HElGHTS t1_iuu5rj4 wrote

Can merchants use insurance to guard against this, or would that just increase the expected value of their losses even more (in exchange for turning a variable cost into a fixed cost)?

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ip3p t1_iuutidl wrote

It's mostly used by larger merchants, but there are services that do essentially that. The services analyze the transaction and will approve/deny it based on fraud risk. Denied transaction they won't cover if a 'chargeback' occurs.

The cost is usually a fixed percentage of the transaction, usually ~1% but can be higher and lower depending on the risk level of the industry.

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