~$4k Unauthorised Transactions on Credit Card - What to Do?

jimbob33 on 29/12/2022 - 23:17
Last edited 30/12/2022 - 09:13 by 1 other user

Hi all, pretty stressed at the moment and thought I'd ask the wise ozbargain community for some advice. Was checking my banking app as I often do (for no real reason) and noticed 2 fraudulent/unauthorised transactions totalling almost 4k. These transactions would have just happened this afternoon or evening as they weren't there this morning when I'd last checked.

I immediately locked my card in the app and contacted citibank. They've cancelled my card, sending a replacement and placed a dispute on those 2 transactions which apparently will be investigated. To me, they're clearly fraudulent as the 2 stores were in Sydney while I'm in Melbourne.

Just wondering if anyone's been in this situation and what the likelihood of getting these transactions reversed would be?

If the citibank don't play ball then what would be my next steps? And perhaps most importantly, how could this have happened? My card isn't lost or stolen, I physically have my card with me.

Thanks in advance.

Financial Credit Card

Related Stores

Citibank Australia
Citibank Australia

Comments

  • dcep on 29/12/2022 - 23:37
    +18

    You'll be fine with Credit card.

    Banks are easy to reverse Credit card fraudulent transactions as the money is not debited from their end and Visa / Mastercard is very accommodative on handling fraudulent transactions for the sake of cardholders experience.

    The only thing for you to worry is how was it leaked / mis-used , whether it's external or your own device been compromised and is there anymore of your personal / sensitive details out there in jeopardy.

    I know some ppl who had their life upside down with every replacements cards got misused right away and all types credit / loans got signed up using his identity.

    how could this have happened? My card isn't lost or stolen, I physically have my card with me.

    Anyone could've used it with just the credit card numbers + expiry + 3 digit CVV , you don't need the physical card to use it.

    • Unorthodox on 30/12/2022 - 00:06
      +3

      Yep - this is a perfect response.

      You may face some delays due to the Citi banking acquisition by NAB and the Xmas break but given it was a credit card, you shouldn't have too much to worry about. I've had good turnarounds from Mastercard issued card chargebacks via CBA

    • WookieMonster on 30/12/2022 - 00:28
      +1

      I see you have assumed that online transactions always ask and verify the 3 digit CVN (and I’m calling at a CVN, because each card scheme calls the CVN something different…)

      Not all online merchants will require and/or actually check the CVN to make sure it is correct. I remember one app I previously used where they never asked for the CVN, and they actually said in the app this was a deliberate choice. Another time, I remember inputting the wrong CVN for an ATO voluntary repayment, yet the ATO still processed the payment from my card!

      My initial hunch was that OP’s fraudulent transactions were MOTO transactions, where you only need the credit card number and expiry date to initiate the transaction. Of course, you’ll be hard-pressed to find a merchant these days being willing to do MOTO transactions, because the merchant will usually be the one liable if any MOTO transactions were later subject to a transaction dispute. Having said that, someone could have sneakily got the EFTPOS terminal at a merchant into MOTO mode and then keyed in OP’s card number and expiry without the merchant realising what was going on…

      • jimbob33 on 30/12/2022 - 06:48
        +1

        So the 2 transactions were for Boozebud Redfern and David Jones Artamon.

        Boozebud appears to be an online alcohol delivery service so that definitely seems to be an online transaction.

        I initially thought the David Jones Artamon was an in store/in person transaction at the actual store and with a charge greater than 1k they'd have to insert card and/or enter PIN. However on googling it appears DJs Artamon no longer exists and there's been a few ppl complaining of fraudulent charges against this name, so now I'm not so sure. Might just all be part of this scam going on at the moment.

        • kerfuffle on 30/12/2022 - 06:51
          +5

          David Jones Atarmon is the name for the online store. Pretty sure Boozebud is also an online-only store.

        • Hardlyworkin on 30/12/2022 - 10:07
          +4

          So people should be on the lookout for some well dressed drunks.

        • Meho2026 on 30/12/2022 - 16:41
          +1

          Same thing happened to me and Citibank were useless.
          I contacted boozebud and the other retailers myself with all the details I had on the transaction and my card number.
          Boozebud were able to cancel the order and refund plus they gave me a voucher.
          Citibank took months to investigate and I had to pay the balance off before I was refunded.

          • jimbob33 on 30/12/2022 - 17:08

            @Meho2026: I assume your credit card was cancelled immediately. How did they refund you?

            Thats great thinking, I didnt even think about trying to cancel the order and it's been over 24 hours, probably too late now

            • Meho2026 on 31/12/2022 - 08:07

              @jimbob33: They told me the card is cancelled but the fraudulent transactions just kept appearing for days after that. Citibank processed them all.
              When I asked how it is possible for someone to keep using a cancelled card. They just told me I have to sit back and let it all happen then dispute the transactions.
              They did nothing to stop it and I ended up having to pay off all of those transactions and go to AFCA for a refund. I closed the account so was refunded to my bank account
              It might not be too late to let the retailer’s know cos they can stop the delivery

              • jimbob33 on 31/12/2022 - 08:23

                @Meho2026: Yeah was after hours when I saw your message, will try this morning to cancel those orders.

                I locked my card prior to cancelling so hopefully no further transactions but annoying thing is now they've cancelled the card I can no longer log in to see if any more transactions.

  • Soluble on 29/12/2022 - 23:39
    +1

    Had it happen a while ago, money back no problems.

  • bobbified on 29/12/2022 - 23:41
    +2

    If the citibank don't play ball then what would be my next steps?

    If they don't play ball, then you take them to AFCA and THEN you play with their balls.

    • jimbob33 on 30/12/2022 - 06:51
      +1

      Haha cheers @bobbified!
      All the replies on here seem to be pretty reassuring thankfully but good to know the path of escalation if required!

  • Tsubasa on 29/12/2022 - 23:58

    Same experience, in my case it was fradulent flights and accommodation transactions in the UK with my transaction account drained overnight. I got the money back but there was some time taken for everything to be sorted by the bank.

  • Kranbone on 30/12/2022 - 00:01
    +1

    Good on you for being diligent and checking. While the amount was high, at least you caught on to it fairly soon. I'm confident you'll get your money back even though the amount was high.

  • localhost on 30/12/2022 - 00:14

    You did the right thing. Wait for the bank to do their job.
    Also make sure you avoid using card (physical) too much as it might be skimmed. Transactions over $1000 (in your case $2000) require physical card to be presented.
    Or if info is stolen from online store consider using paypal or virtual cards for shopping.

  • thatonethere on 30/12/2022 - 00:39
    -1

    Should be fine (ie 99.99%) - poor merchant will probably have to eat it though

    • Neoika on 30/12/2022 - 06:45
      -2

      Maybe the merchant is the culprit.

      • DoctorCalculon on 30/12/2022 - 19:50
        +1

        If the merchant had implemented 3DS, it would be one way to cut back some of these fraud.

        • Neoika on 30/12/2022 - 20:17

          I know you didn't neg, but you haven't undersood it. Merchant is fraudster oneself.

          • DoctorCalculon on 30/12/2022 - 22:41

            @Neoika: No, I didn't misunderstand you nor did I neg you since what you had stated is a definite possibility.
            However, I was simply stating another potential fraud vector.

  • jimbob33 on 30/12/2022 - 06:50
    +1

    Thanks for all the replies guys, which all seem pretty reassuring.

    Will have to do some thinking and take a deeper look to see how this may have happened.
    Consider myself to be pretty sensible and never thought this would happen!

    • Pelicannn on 30/12/2022 - 07:08
      +1

      Card skimmer is my guess.

  • Pelicannn on 30/12/2022 - 07:02
    +3

    FWIW, and I think personally this is an outrageous story but this is my experience after losing my NAB Debit card.

    Went out clubbing in Sydney about 4 years ago on a Saturday night. Sunday morning at 10am I had a missed call from the NAB fraud department (yep… on a Sunday). Turns out I lost my debit card on the floor or something and it was picked up by an unscrupulous character who then went and used it at some of those 24h convenience stores in the city to buy cigarettes and such. After the third transaction attempt the card automatically became blocked.

    I called NAB back and was a little bit in disbelief because firstly it was a Sunday morning (apparently they work 24 hours - I almost half thought it was a scam in itself trying to get my details) and secondly, I asked how they knew. They said they have super good algorithms that track almost everything you buy on your card and linked transactional and savings accounts. He asked me if I’d ever purchased cigarettes before, to which I hadn’t.

    Basically he said that it flagged in the system the instant they were purchased and then the subsequent second time at a different shop they instantly knew what was up.

    The best part of all that was the guy flagged the card as being stolen after midnight (even though I definitely just lost it in my drunk state so definitely 95% my fault), so everything purchased after midnight (including alcohol at the bar) was refunded as a fraudulent transaction.

    Probably the best experience I’ve had with a bank tbh. Too bad I left Nab after 20 years the other month for those sweet OzB savings deals with BOQ.

    Anyway I know that’s not quite the same, but for credit cards it’s even easier to get that stuff refunded. Especially if they have already reported them as fraudulent. Up until that point I didn’t even realise debit cards had any fraud protection.

    Good luck :)

  • payless69 on 30/12/2022 - 07:25
    -1

    (for no real reason)
    Location
    VIC/NSW

    got it! It was one of us!

  • Danstar on 30/12/2022 - 08:02
    +1

    Happened to me around 15 years ago; flights were booked with my card, didn't have to pay a cent

    • Muzeeb on 30/12/2022 - 08:13

      How was the flight? 😉

      • Danstar on 30/12/2022 - 08:18
        +3

        Still on it ;) :P

  • Muzeeb on 30/12/2022 - 08:16
    +2

    Not sure about Citibank app but on CBA app you can set notifications for transactions incoming and outgoing. You will get an alert immediately when these scams happen. Can be annoying for everyday transactions though.

  • Nugs on 30/12/2022 - 08:18
    +1

    Wife cancelled her company Citi card after repeated unauthorised NBA game pass transactions. They were all blocked after the first was successful and disputed. Got sick of the emails and reverting to claiming back expenses. The second card hadn't even been used, the first only once legitimately
    .

    • Ash-Say on 30/12/2022 - 08:37

      Same thing happened to my partner couple of days.

      I don't know how my partner is getting charged for NBA Game Pass.

      Just wondering with a replacement cards, whether all PayID transactions will be cancelled?

  • TheMindsetTraveller on 30/12/2022 - 08:54
    +1

    I have a current fraud dispute - some punk has spent ~$2k on facebook ads.

    • jimbob33 on 30/12/2022 - 12:44
      +1

      Do you mind my asking how far into the dispute you are?

      • TheMindsetTraveller on 30/12/2022 - 20:52

        about 2 weeks; our card provider sms'ed us advising of possible of fraudulent transaction. there were some charges that weren't ours. we called, the card is blocked, but we had to lodge a dispute, really. So now the card provider is conducting and "investigation" that could take up to 45 days to resolve. seriously, that long.

        i think we had a fraudulent transaction dispute with iirc citi or anz around 10 years ago for about $3.5k and it got handled very fast. this 45 days for our current situation seems excessively slow imo.

        • jimbob33 on 30/12/2022 - 21:38

          Yeah it's a long time to be 2 or 4k in the red for. After some reading, my plan is to give them 30 days, at which point will call them to chase and send a written letter stating if not resolved in another 2 weeks will submit a complaint to AFCA. Then send a complaint if not sorted by then

  • verio on 30/12/2022 - 09:47

    Just in case, here is another tip. Review where your credit card details are also stored. Maybe you had them recorded in your password manager or in your browser?

    Just try thinking about all possible places where your credit card details could leak.

  • Blokeinhisundies on 30/12/2022 - 10:58
    +1

    My Citi card has been hit as well but for much less. Had a fraudulent charge at Sydney store for $US1 on boxing day and noticed today. Blocked the card straight away.

    Normally they do a small charge and if it works go straight to big spending. When my CBA card got done they spent a couple of bucks and then dropped $600 bucks on protein powder in Brisbane and then another $100 on pizza in Melbourne. CBA was pretty quick to flag the transactions though.

    • kerfuffle on 30/12/2022 - 11:00

      What Sydney store charges in USD?

      • Blokeinhisundies on 30/12/2022 - 11:05

        Was a t-shirt printing mob. Nothing they sell is that cheap so I assume it's someone working there who does a bit of credit card fraud on the side.

      • Neoika on 30/12/2022 - 11:47

        There is a Sydney city in USA too. Or the fraudster purposely registered it in that name.

  • 4Eva on 30/12/2022 - 11:19

    Cover your cards everyone with paper and just tap and go.

    I got skimmed also recently, but I think I found the cause which was the new Woolworths camera checkout system but I could not prove it as the Woolworths team was unable to cooperate, (probably due to some legal liability). It is still currently in dispute with HSBC.

    For more background, this was a newly activated card and I only used it once at Woolworths before it was used in the Philippines and Ireland for some reason.

    This is our only course of action unless you want to use G-Pay/Apple-Pay; which could itself create more security issues if your phone does not have the latest security updates.

    • jimbob33 on 30/12/2022 - 12:44

      Do you mind me asking how far into your dispute you are? Time frame wise?

    • jimbob33 on 30/12/2022 - 12:45

      And I do normally use Samsung pay at woolies and Coles

  • ragrum on 30/12/2022 - 18:38

    You may be able to get them to apply a temporary credit for the amount while they're investigating/reversing the charge, if they haven't already done that.

  • huyfken on 30/12/2022 - 19:26

    I had the same thing happen to me with my Citibank debit card which was used to subscribe to Netflix in Canadian dollars. Raised a dispute at the time and got all the money back plus a bit more due to currency fluctuations. Then same thing happened a month later. I figured their fraud protection algorithms were not clever enough to block so I just transferred all the money out and put it in a new account.

    You might be able to reach out to the vendors to try and block the fraudulent transactions from progressing as I recall it takes a few days for Citibank to respond

  • jimbob33 on 31/12/2022 - 09:56

    Thanks so much to the ozbargain community for their replies.

    Just an update in case this will help anyone else in the future, managed to get in contact with one of the merchants and they were able to cancel the order and refund me the total amount. Called citibank and clarified even with the card cancelled refund will go through.

  • wako on 13/01/2023 - 01:43

    Took me 11months to get all the refund back from Citibank they forgot one transaction and then after was re-imbursed everything, they tried to charge me the interest on all of it… So had to start again another process… In the end financial ombudsman sorted it as they just wouldn't reply…

    Hopefully now owned by NAB it's a better service…

    Luckily I had a 0 Ballance when it happened and didn't use the account at all until was sorted

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