Abuse of the card-dispute process, either by scammers against victims or against legitimate merchants.
A chargeback reverses a card payment through the issuing bank. Scammers exploit chargebacks in several ways — for example, “overpaying” with a card that is later reversed, or disputing legitimate charges after receiving goods or services.
For job seekers, the risk appears when a “client” pays by card, has you send part of it elsewhere, then reverses the original charge.
Red flags
- A client overpays by card and asks for a partial refund elsewhere
- Pressure to disburse funds before a payment settles
Frequently asked questions
How does a chargeback leave me out of pocket?
If someone pays you by card and you forward part of the money, they can later dispute the original charge with their bank. The card payment gets reversed, but the money you sent onward is gone.