Cap1 Repeatedly Getting Hit with Fraudulent Charges - Possible Inside Job?

[Anonymous]

There is a credit card loophole when it comes to subscription services... when a new card is issued, the old credit card number will still work for subscription charges, even in the case of fraud. This is not an issuer feature, it’s actually a feature of the card network. I went through this mess with a Spotify subscription that I couldn’t cancel. I called and disputed the charge, new card was issued, the charge showed up along with my Netflix charge the next month. I called Capital One and they explained to me that mastercard will automatically allow any recurring subscription charges and that they would have to put a block, I believe it was for a maximum of 6 months. 

Fortunately I was able to figure out which email address I used and get the subscription canceled so I never had to deal with it again. Even if you freeze your card in an app, charges billed as recurring charges will still go through despite anything else being flat out denied. It’s a stupid loophole and it favors merchants who do shady things. Unfortunately you might be in for a fight on this one. 

As for a credit card being skimmed in the mail, I would be shocked if it’s possible to do with the card still in the envelope. The more likely scenario is your card got out in some breach and you’re running into a shady merchant processor that is running charges through as recurring subscription charges to get around the fact that a fraud dispute would shut the card down. 

[GApeachy]

---

@Anonymous wrote:

As for a credit card being skimmed in the mail, I would be shocked if it’s possible to do with the card still in the envelope. 

---

@Octopus

(RFID Skimming) .....that's why they make RFID wallets, sleeves, purses, etc. 

Here's an interesting article: (copy and paste)

https://www.dailymail.co.uk/sciencetech/article-2948212/Will-victim-digital-pickpockets-Hacker-reveals-easy-steal-credit-card-numbers-air-SECONDS.html

[Anonymous]

---

@Anonymous wrote:

There is a credit card loophole when it comes to subscription services... when a new card is issued, the old credit card number will still work for subscription charges, even in the case of fraud. This is not an issuer feature, it’s actually a feature of the card network. I went through this mess with a Spotify subscription that I couldn’t cancel. I called and disputed the charge, new card was issued, the charge showed up along with my Netflix charge the next month. I called Capital One and they explained to me that mastercard will automatically allow any recurring subscription charges and that they would have to put a block, I believe it was for a maximum of 6 months. 

Fortunately I was able to figure out which email address I used and get the subscription canceled so I never had to deal with it again. Even if you freeze your card in an app, charges billed as recurring charges will still go through despite anything else being flat out denied. It’s a stupid loophole and it favors merchants who do shady things. Unfortunately you might be in for a fight on this one. 

As for a credit card being skimmed in the mail, I would be shocked if it’s possible to do with the card still in the envelope. The more likely scenario is your card got out in some breach and you’re running into a shady merchant processor that is running charges through as recurring subscription charges to get around the fact that a fraud dispute would shut the card down. 

---

This would only make sense if I subscribed to this merchant's services to begin with. I've never visited their website before, much less subscribed to their service.  Cap1 put a block for 15 months on this merchant, which means I need to check again in 15 months to see if they're still trying to fraudulently charge my card. 

[Anonymous]

@GApeachy wrote:

@Anonymous wrote:

As for a credit card being skimmed in the mail, I would be shocked if it’s possible to do with the card still in the envelope. 

@Anonymous

(RFID Skimming) .....that's why they make RFID wallets, sleeves, purses, etc. 

Here's an interesting article: (copy and paste)

https://www.dailymail.co.uk/sciencetech/article-2948212/Will-victim-digital-pickpockets-Hacker-reveals-easy-steal-credit-card-numbers-air-SECONDS.html

Yeah, Daily Mail is nothing but clickbait. The reality is that it’s highly improbable that someone is wasting their time trying to do this.

https://www.npr.org/sections/alltechconsidered/2017/07/04/535518514/there-are-plenty-of-rfid-blocking-products-but-do-you-need-them

https://www.csoonline.com/article/3243089/the-truth-about-rfid-credit-card-fraud.html

[Anonymous]

---

@Anonymous wrote:

---

@Anonymous wrote:

There is a credit card loophole when it comes to subscription services... when a new card is issued, the old credit card number will still work for subscription charges, even in the case of fraud. This is not an issuer feature, it’s actually a feature of the card network. I went through this mess with a Spotify subscription that I couldn’t cancel. I called and disputed the charge, new card was issued, the charge showed up along with my Netflix charge the next month. I called Capital One and they explained to me that mastercard will automatically allow any recurring subscription charges and that they would have to put a block, I believe it was for a maximum of 6 months. 

Fortunately I was able to figure out which email address I used and get the subscription canceled so I never had to deal with it again. Even if you freeze your card in an app, charges billed as recurring charges will still go through despite anything else being flat out denied. It’s a stupid loophole and it favors merchants who do shady things. Unfortunately you might be in for a fight on this one. 

As for a credit card being skimmed in the mail, I would be shocked if it’s possible to do with the card still in the envelope. The more likely scenario is your card got out in some breach and you’re running into a shady merchant processor that is running charges through as recurring subscription charges to get around the fact that a fraud dispute would shut the card down. 

---

This would only make sense if I subscribed to this merchant's services to begin with. I've never visited their website before, much less subscribed to their service.  Cap1 put a block for 15 months on this merchant, which means I need to check again in 15 months to see if they're still trying to fraudulently charge my card. 

---

I agree with you but subscription services can be billed starting with a pending charge coded as a subscription. It’s one of the most ridiculous loopholes in credit cards.

I also don’t know how that post up above got so messed up, sorry lol. 

[Anonymous]

Sorry about all of the hassle that you're going through.  If you have been compromised 10 times in 2 years then you should consider changing your name to fraud magnet...lol.

[Anonymous]

I think what @Saeren means is that an attempt to establish a subscription service was successful at some point on your old card, whether it was initiated by you or not. So the network sees the previous history and automatically forwards all future activity to the new card.
Even with the charge being fraudulent, you may still have to contact the online subscription store yourself to get that ball rolling. Sadly, when trying to prove fraud charges or identity theft, the victim ends up having to do a lot of the legwork themselves.
Good luck to you!

[GApeachy]

---

@Anonymous wrote:
I think what @Saeren means is that an attempt to establish a subscription service was successful at some point on your old card, whether it was initiated by you or not. So the network sees the previous history and automatically forwards all future activity to the new card.
Even with the charge being fraudulent, you may still have to contact the online subscription store yourself to get that ball rolling. Sadly, when trying to prove fraud charges or identity theft, the victim ends up having to do a lot of the legwork themselves.
Good luck to you!

---

That makes sense.  Sad you have to do so much investigating to stop thieves, they will always be one step ahead it seems.

Good luck OP!

[DaveInAZ]

---

@Anonymous wrote:

---

@Anonymous wrote:

Heard that software exists today where fraudsters can run card numbers randomly and go after a few to obtain goods and services. Know it happened to me on a card that was new and never used but, charges showed up. I was dumbfounded! Nothing is really safe. Good luck on getting out of the circle that is trying to use and abuse your credit!!!

---

This seems like a very plausible explanation, thanks for sharing. I've had at least 10  different cards get hacked over the past 2 years. It's getting worse each day. 

---

If you've had 10 different cards hacked over the past 2 years you have a serious problem going on with you. I've had 1 card compromised ever, about 5 years ago, Citi caught it right way. Gas station skimmers are one thing, and use a pump closest to store, they target pumps farthest away where cashiers are less likely to see them at work. But do you have others in your household with access to your mail? It can be someone you least suspect, my little sister did that to my dad years ago, snagged a CC out of his mail and racked up huge charges on it and was cleaver enough to snag the monthly bills, my dad didn't catch on until they finally called him about his late payments.

[Anonymous]

No one has access to my mail or cards except myself. I have one au card I share with a family member that has not been hacked, they live in a different state. At least half of the hacks were via gas station skimmers, I'm sure of that because the fraudulent charges would happen within 24-48 hours of me using a gas pump. The other 5 are a mystery.  

I should point out that at no time was there ever a successful or attempted pending charge/authorization on my old card number by the online subscription service. The only time they ever attempted such a thing was on the new card which had not yet been activated.