Handling Claims of 'Fraud' for Legitimate Subscriptions

I work in bank fraud, and while most cases are honest, we often deal with customers insisting that a legitimate subscription is fraud. This includes services like Netflix or Amazon Prime, where the customer likely clicked to subscribe without realizing it. The payments are clearly authorized, with OTPs or in-app approvals, and the subscription details are visible on their statements. Yet, they come to us and demand we label it fraud.

A related issue is retrospective charges. Even if we issue a new card, companies like VISA can still authorize charges for valid ongoing subscriptions. When I explain this is normal, customers often demand to speak to a manager. How do you handle these situations?

I just file the dispute. We can’t deny them that, even if it’s clearly not fraud. The investigation will sort it out, and the customer will either be refunded or denied based on evidence. It’s annoying when they’re lying, but it’s not worth the argument.

@Taylor
In fraud cases, we can’t take everything at face value. Unlike customer service, we need to challenge claims because many are false. Customers often don’t differentiate between fraud and customer service, but we have stricter protocols and more authority to block accounts. This creates unrealistic expectations when they’re passed to us.

@Brooke
Totally understand. Fraud teams are a different beast, and I respect the need for tougher protocols. I’m in customer service, so I just forward them along.

Escalate and document everything per your procedures. Cover your bases.

Rin said:
Escalate and document everything per your procedures. Cover your bases.

Managers hate these escalations since they can’t resolve them either, so it’s a constant cycle of pushing back. There’s no real winning here.

@Brooke
It’s a back-and-forth. Customers deny reality, and the cycle repeats.

A lot of people are lazy. They could cancel their subscriptions directly, but they rely on the bank instead. I’ve had people tell me they ‘tried to cancel Netflix but it’s hard,’ and I walk them through canceling in three clicks.

@esleystanley
It’s frustrating. Entire families will call in yelling that a $9.99 payment isn’t theirs, only to admit later it was. Dysfunctional families must use this as a bonding activity.

The best is when they claim fraud, and you deactivate their card, and suddenly it’s ‘not fraud anymore.’

BudgetingBanker said:
The best is when they claim fraud, and you deactivate their card, and suddenly it’s ‘not fraud anymore.’

Or we block their device, and suddenly they remember everything with perfect clarity.

I work in billing disputes. When someone insists it’s fraud even after admitting they made the transaction, I transfer them to fraud and let them deal with it. It’s not worth arguing.

Brian said:
I work in billing disputes. When someone insists it’s fraud even after admitting they made the transaction, I transfer them to fraud and let them deal with it. It’s not worth arguing.

We’re the fraud department, so passing it to us only creates unrealistic expectations. We’re dealing with real fraud cases, like people being socially engineered for large sums, not someone who forgot their subscription.

A significant number of fraud cases are these disputes. I always advise customers to handle it with the merchant first. Filing false claims often results in being locked out of services, which forces them to work it out the hard way.

@LisaMoore
Exactly. Customers don’t realize the bureaucracy involved in locking and unlocking accounts after a false claim. It’s a lot of unnecessary work for everyone.

Document everything and let customers file the claim if they insist. If someone files too many unsubstantiated claims, advocate for closing their accounts as they present an elevated risk.

Worst offenders for disputes:

  • Local gyms
  • Timeshare companies
  • Software support

For subscriptions like Amazon Prime, people often forget they signed up. I remind them they need to cancel the subscription to stop future charges and explain that claiming fraud for valid charges won’t work.