Discover Card Scams: How to Avoid and Report

Discover Card Scams are a growing concern, with over 1,000 reported cases in the US alone in 2020. Scammers are getting more sophisticated, making it harder to spot them.

If you're a Discover cardholder, you're already a step ahead with their robust security measures, such as zero-liability protection. However, even with these safeguards, scammers can still find ways to exploit vulnerabilities.

To avoid falling victim to a Discover card scam, be cautious of calls or emails asking for your account information or login credentials. These are classic tactics used by scammers to gain access to your account.

Always verify the authenticity of any communication by contacting Discover's customer service directly.

Gift card scams are a real threat, and it's essential to be aware of the tactics scammers use to get you to buy gift cards. Scammers will often claim to be from government agencies like the IRS or Social Security Administration, asking you to pay taxes or fines with a gift card. Government agencies won't contact you to demand immediate payment, and they never demand payment by gift card.

For another approach, see: Cash App Gift Card Scams

Some scammers will pose as tech support from companies like Microsoft or Apple, claiming there's something wrong with your computer and asking for remote access. Don't give them access to your computer, as it's a scam. Others will claim to be a friend or family member in an emergency, asking you to send money right away – but not tell anyone.

Here are some common gift card scams to watch out for:

Gift card scams are all around us, and it's essential to know how to spot them. Scammers often use fake stories to trick you into buying gift cards, which they can then use to steal your money.

Government agencies like the IRS, Social Security Administration, and FTC will never contact you to demand immediate payment, and they'll never ask for payment by gift card. If someone claims to be from the government, it's a scam.

Scammers may also claim to be from tech support, saying your computer needs fixing and asking for remote access. Don't give them access to your computer – it's a scam.

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Some scammers will even use voice cloning to sound like a friend or family member, asking you to send money right away. If you're worried, contact the person directly to check that everything is okay.

Other scammers will claim you've won a prize, but first, you need to pay fees or charges with a gift card. No honest business or agency will ever make you buy a gift card to pay for a prize.

Here are some common gift card scams to watch out for:

Gift card scams can be frustrating and costly for consumers, but understanding the process can help prevent and resolve issues.

Dealing with chargebacks is already a challenge, but each card brand has its own set of rules for contesting invalid disputes.

Discover credit cards are no exception, with their own time frames, exemptions, and procedures for contesting chargebacks.

Merchants need to be aware of these rules to increase their chances of winning reversals and minimizing losses.

The Discover chargeback process can be complex, with different time frames and exemptions for each network.

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Scams can be quite convincing, and that's because fake checks often look like the real deal, even to bank employees. They're printed with the names and addresses of legitimate financial institutions.

It can take weeks for a bank to figure out that a check is a fake. This delay can give scammers plenty of time to get away with the money.

Fake checks can be tricky to spot, even for banks. They often look like real checks, complete with legitimate financial institution names and addresses.

Banks are required by law to make deposited funds available quickly, usually within two days. However, this doesn't mean the check has been verified as legitimate.

Fake checks can take weeks to be discovered, and by that time, the scammer may have already received the money you sent. This can leave you stuck paying it back to the bank.

To avoid falling victim to a fake check scam, be cautious of requests to use money from a check to send gift cards, money orders, or wire money to someone.

Banks have to make deposited funds available quickly, usually within two days. This can make it seem like the check has cleared, but it doesn't necessarily mean it's a good check.

Fake checks can look just like real checks, even to bank employees. They may be printed with the names and addresses of legitimate financial institutions.

It can take weeks for a bank to figure out that the check is a fake. By that time, the scammer has any money you sent, and you're stuck paying the money back to the bank.

Here's a timeline of what can happen:

Your best bet: Don't rely on money from a check unless you know and trust the person you're dealing with.

Credit card fraud can occur in many ways, including credit cards being lost or stolen, or someone accessing your personal identifying information by stealing your mail or looking over your shoulder at your phone screen.

Credit card skimming is a common method of credit card fraud, where a scammer steals debit or credit card information via a special device—a skimmer—illegally attached to an ATM, gas pump, or point-of-sale terminal.

Phishing scams also occur when a perpetrator tricks a victim into sharing personal information, which can be used to steal money or even your identity.

Here are some common ways to avoid credit card fraud:

If you're a Discover cardholder and you think you've been scammed, you'll want to know how the chargeback process works. Discover lets cardholders dispute transactions within 120 days of the original purchase or estimated delivery date.

To start, you'll need to contact Discover's customer service line at (800) 347-2683 or log into your online banking account to file a chargeback. You can also select the transaction you want to dispute and click the "Dispute This Charge" icon.

Once you've filed a chargeback, you'll need to provide evidence to back your claim. You can fax Discover at (224) 813-5109 or upload the documents online through the "Upload Documents" section.

For another approach, see: Discover Card Dispute a Charge

Discover will then review the transaction data it has already obtained to decide whether or not the dispute is valid. If they decide the claim is legitimate, they'll issue a chargeback and provide a provisional credit for the amount of the disputed transaction.

Here's a breakdown of what happens next:

If the merchant doesn't respond to the Ticket Retrieval Request, the claim will be escalated to a chargeback. This can result in additional fees for the merchant.

It's worth noting that Discover prohibits any contact between merchants and the card member regarding a Discover card chargeback. This means that merchants can't try to resolve the issue directly with you.

Clear communication with customers is key to preventing chargebacks. Merchants should ensure customer service contact information is prominently displayed and easy to access from multiple locations.

To avoid chargebacks, merchants should share their return or exchange policy and any other terms of service before completing the checkout process. This transparency can help prevent disputes.

One important step is to always ask for the CVV card security code on the back of the Discover card during checkout. This simple step can help verify the cardholder's identity and reduce the risk of chargebacks.

Here are some best practices to prevent Discover card chargebacks:

Clear communication with customers is key to preventing chargebacks. Merchants should ensure customer service contact information is prominent and easy to access from multiple locations.

Using Discover's Verify+ and Automated Address Verification (AVS) services can also help validate card member information. These services can reduce the risk of chargebacks by ensuring that the cardholder's information matches the transaction details.

Merchants should always ask for the CVV card security code on the back of the Discover card during checkout. This adds an extra layer of security and can help prevent chargebacks.

To prevent chargebacks, merchants should process any credits immediately and let card members know when they will receive the refund. This transparent approach helps build trust with customers and reduces the likelihood of disputes.

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Here are some best practices for preventing Discover card chargebacks:

Protect Buy is a solution that uses technology to verify card member identity at the time of purchase.

Discover ProtectBuy, the Discover-branded version of 3-D Secure customer authentication, is a reliable way to detect and prevent potential issues.

If a transaction is flagged as high risk, the card member must enter a single-use verification password sent by the system in real time.

This extra layer of security helps protect your identity and personally identifiable information.

Identity protection can help detect fraud, giving you peace of mind when making online purchases.

If you suspect you've been targeted by a Discover card scam, report it to the authorities as soon as possible. You can start by contacting the Federal Trade Commission, the U.S. Postal Inspection Service, and your state Attorney General.

To report credit card fraud on your Discover card, call the number on the back of your card, your credit card statement, or the card issuer's website. Some credit card companies, like Discover, offer 24/7, U.S.-based, live customer service.

If you believe your identity has been stolen in addition to the fraudulent charges, you should take a few extra steps. Contact the major credit bureaus to place a fraud alert on your credit reports. This will make it harder for thieves to open a new account in your name.

Here are the steps to take if you believe your identity has been stolen:

If you've fallen victim to a scam, it's essential to report it to the right authorities. The Federal Trade Commission is a great place to start.

You can report fake check scams to the Federal Trade Commission, the U.S. Postal Inspection Service, or your state Attorney General. These organizations are dedicated to helping you recover from scams and preventing others from falling victim.

Here are the organizations you can report to:

By reporting scams, you're helping to keep your community safe and secure.

If you've sent money to a scammer, acting quickly is crucial to try to get your money back. Don't panic, but take action right away.

If you paid with a gift card, tell the company that issued the card immediately. Gift cards are for gifts, not payments, and scammers often demand payment by gift card. The company might be able to refund your money if you act quickly.

Contact the store where you bought the gift card as soon as possible to report the scam. You can find the gift card company's contact information on the card itself or by doing some research online.

If you wired money to a scammer, call the wire transfer company right away to report the fraud and file a complaint. Reach the complaint department of MoneyGram at 1-800-MONEYGRAM (1-800-666-3947) or Western Union at 1-800-325-6000.

Here are the contact numbers for wire transfer companies:

If you paid with a money order, contact the company that issued the money order right away to see if you can stop payment. You can also try to stop delivery of the money order, depending on how it was sent.

Reporting credit card fraud is a top priority, and knowing the steps to take can make all the difference. Call your credit card company as soon as possible if you detect fraudulent charges.

You can find the number on the back of your credit card, on your credit card statement, or on the card issuer's website. Some credit card companies, like Discover, have 24/7, U.S.-based, live customer service.

If you believe your identity has been stolen, contact the credit bureaus to place a fraud alert on your credit reports. This will require contacting each of the major credit bureaus, such as Equifax, Experian, and TransUnion.

A fraud alert makes it more difficult for thieves to open a new account in your name by requiring lenders to verify your identity. You can also consider placing a credit freeze on your reports with each credit bureau for added protection.

Filing a police report is also essential if you have evidence that someone has stolen your identity. Keep a copy of the report as you may need to submit it to creditors and others.

The Federal Trade Commission (FTC) provides a dedicated website to report identity theft and helps you create a personalized recovery plan.

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