On Tue, 10 May 2016 17:09:59 +0100, Phil W Lee <
ph...@lee-family.me.uk>
wrote:
>John B. <
slocom...@gmail.xyz> considered Tue, 10 May 2016 08:37:10
>Here in the UK, the card company is regarded in law as a party to the
>contract (legally, I believe that the business sells the goods to the
>CC company, which then sells them to you), so if you don't get the
>goods, the CC company have to refund you. Of course, if that happens
>they attempt to get the money back from the original vendor, but
>that's their problem, not yours.
>This does mean that they (the CC companies) do take a bit more care
>over who they will give vendor accounts to, and in turn that it's
>quite difficult to set up that kind of scam - because the CC company
>(bank, usually) takes steps to make sure that the businesses they
>trade with actually do have goods and fulfil orders.
>They also set a much higher bar for what is known as "cardholder not
>present" trading, so a company can accept cards for in-store purchases
>much more easily than they can sell the same good by mail or internet
>order.
>>
>>>A friend bought three bikes there and delivery was fast. They state
>>>what's in stock. One is a titanium MTB that seems almost indestructible.
>>>The other two are fat bikes which ride great.
>>>
This was some years ago, but the system that the magazine uncovered
was three individuals, or groups of individuals, that set up a
business in the L.A. basin. The groups then used references from the
initial business to establish credit for another business. Then used
the two businesses top establish another business.
Then one of the businesses would take one page adverts in the computer
magazine for low priced hard disks. When sufficient credit card orders
had been taken they cleaned out the bank account and literally walked
away. But in the mean time the original three businesses had been used
to establish more businesses and so on and so on.
At the time a single whole page advert in a major computer magazine
was several thousand dollars so eventually the magazine got a bit
upset and started trying to collect and no one was there.
--
cheers,
John B.