Card-Declined Notification Scam: Beware of websites pretending to be legitimate companies
Imagine that you’ve received an email with an enticing offer for a product or service, perhaps with a discount or as part of a “reward.” The only requirement is that you pay for shipping (for a gift) or pay a service fee. So you input your credit card credentials and you suddenly receive a notice that your card has been “declined.” You scratch your head and wonder what might be wrong with that particular account, so you try another card and it’s “declined” as well. You shrug and think, “Oh well, that’s the end of that.” Only it isn’t. When you check your credit card accounts online you notice that there are transactions for those “declined” cards, and the amounts for the bogus shipping or service fee charges are listed as debits.
Fraudsters are constantly creating decoy websites, duplicating legitimate online businesses, hoping that you won’t notice any tiny errant details. In September 2024 the American Automobile Association (AAA) warned its members of fake emails and texts claiming to represent AAA customer service, offering a free emergency kit if the people they contacted took a survey. The catch was that you were required to pay shipping for this “free” gift, which led to a “card-declined” message. One victim discovered multiple fraudulent charges on the two credit cards he used.
How to protect yourself
Never use a debit card, only use credit cards since they offer better fraud protections than debit cards. Scammers create websites that look very much like the legitimate websites they are imitating. Sometimes you can spot numerous grammar and syntax errors, but you should also scrutinize the URL. Oftentimes there will be a letter or two that differs from the company’s actual website address. Also, ignore any unsolicited emails and texts, and definitely do not click links within any of them. Also ignore unsolicited phone calls — never call those numbers back.
More Information
BBB Scam Alert: ‘Card declined’ error may lead to multiple fraudulent charges
It can happen when you least expect it – your credit card is declined! In some cases, you might not have enough money in your account, or you forgot to tell your bank you’re traveling abroad. But if you’re shopping online, an error or “card declined” message may be a sign of a new twist on online shopping scams.
BBB Scam Tracker has received reports from consumers receiving fraudulent charges on their financial accounts after facing “card declined” messages when shopping online. AAA has also recently warned consumers about fraudulent emails promising a free emergency kit, in which consumers faced similar “card declined” error messages but were still charged.
How to Avoid the Card Declined Scam
Imagine you’re online, shopping for something you’ve been eyeing for weeks. You find what seems like a great deal, load up your cart, and head to checkout. But then, the unexpected happens—your card is declined. Annoying, right? Maybe you grab another card or try a different payment method.
Here’s the catch—that card declined message may be fake, part of a scam designed to charge your cards repeatedly without your knowledge. Scammers prey on this moment of frustration, turning it into an opportunity to steal from you. Let’s dive into the credit card declined scam, see how it works, and how to stay ahead of the scam.
Declined: How to avoid the credit card swipe scam
The number one reason a credit card charge is declined is insufficient funds, according to Discover, but the Better Business Bureau (BBB) warns cards might also be declined as part of a crafty scam.
“It’s just another twist on the same scam,” Melanie McGovern with the BBB said. “They’re trying to get your info!”
McGovern said they have received multiple reports through their Scam Tracker about this deceptive scheme.
One customer reported making a purchase online and after entering their credit card info, the page refreshed asking them to use a different card. When they tried the same card again, they got the same error message. Moments later they received a fraud alert from their bank saying their card was charged $2,500 and declined.
Card Declined Scam Catching Online Shoppers
If you get a notice when making a purchase online that your card was declined, it could be a scam. The Better Business Bureau has received reports from consumers who discovered fraudulent charges on their accounts after getting “card declined” notices while shopping online.
Here’s what to know about the latest twist in online shopping scams and what you can do to avoid becoming a victim.
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