Tourists have been cautioned to be vigilant about deceitful debit card schemes after incidents where one individual was charged £1,500 for a kebab and another was billed £3,000 for a corn on the cob.
Lisa Selby* expected a small charge of 40 reais (£5.90) for two slices of grilled cheese bought from a beach vendor in Rio de Janeiro. However, she soon noticed that her debit card was charged 4,000 reais (£590) instead, as the vendor sneakily added two extra zeros to the amount on the card reader.
“He showed me the correct amount on the payment terminal initially but then turned it towards himself and secretly added the zeros just before I tapped my phone,” she explained. “Right after, he indicated that there was no paper available for a receipt and quickly left the scene.”
Travelers visiting Rio have been alerted about such fraudulent activities. Recently, a beach vendor was arrested following an incident where a British tourist ended up paying £1,500 for a kebab, and an Argentinian visitor was shocked to find that a £3 corn on the cob had escalated to a £3,000 charge.
Recognizing the Scam
Dishonest merchants exploit tourists, particularly those unfamiliar with the local currency, making it easier to manipulate the transaction amount without immediate detection.
A typical trick involves showing the tourist the correct amount on the payment device for confirmation, then discreetly changing it before the transaction is completed.
In some cases, scammers quickly push the payment device towards the tourist’s card or mobile device to process the payment before the total amount can be verified.
Steps to Take
This type of scam highlights a loophole in UK consumer protection laws. While victims of bank transfer fraud, known as authorised push payment fraud, are generally reimbursed, those deceived in person-to-person transactions at vending points rarely receive a refund without proof of the overcharge.
After noticing the fraudulent charge, Selby immediately contacted her bank, Monzo, and was initially informed that the transaction could be reversed since it was still pending. However, Monzo later corrected this information, stating that authorized payments could not be reversed.
Selby’s efforts to recover funds through her card issuer’s chargeback scheme were unsuccessful because she lacked a receipt or invoice that verified the agreed-upon price. Following intervention by Guardian Money, Monzo decided to issue a refund as a gesture of goodwill. The bank acknowledged the growing reports of such scams but classified Selby’s case as a buyer/seller dispute instead of outright fraud since the payment was authorized by her.
A spokesperson commented, “We realize this situation was extremely frustrating for the customer. Although our decision to reject the claim was based on correct protocols, we admit our communication could have been better.”
The Financial Conduct Authority, the UK banking regulator, confirmed that pending transactions are generally irreversible and that chargebacks are an optional service provided by card issuers, which maintain the right to set their own rules and procedures.
They also noted that victims might be able to file a claim for an unauthorized transaction if they did not agree to the charged amount and that they could approach the Financial Ombudsman Service with complaints about their bank’s response.
To prevent such frauds, it is recommended that tourists either pay cash to mobile vendors or make sure they personally handle the card reader during transactions to avoid any last-minute changes to the amount.
* Name has been changed
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