Digital Star unauthorized charge

Complaint

0
Steve
Country: United States
A preauthorization for $74.95 from Digital Star with a bad phone number (208-123-7377) showed up on my debit card account 1/29/12.  Called bank fraud department and had the account killed immediately.  They stopped the charge since it had not completed.  Do not know who Digital Star is or what the charge was for.  I use the card for online purchases mainly through Amazon.  No purchases in the last 30 dqays.  However, I placed orders in the last 60 days from a company called Turncraft (woodworking plans), Personal Creations, and Entirely Pets. I wonder what companies others have used recently.

Comments

  • 0
    Chris
    | 5 replies
    Tj, I called the Secret Service and they will not investigate this. The person I talked to on the phone gave nothing but excuses as to why they are not able to investigate this and put a stop to these Digital Star fruadulent transactions. One of the criteria the person I spoke with mentioned was that the activity had to be wide spread; I guess the fact that Digital Star has authorized transactions from card holders all across the U.S. and Canada and has effected probably hundreds of customers of various banks does not meet the criteria.

    I also called Bank of America back and chatted with the fraud department again. I thought they might like to know that they continue to authorize transactions from Digital Star and they do not care either. I asked the representative to tell me exactly where my money went (after all they sent my money to another bank using a routing number), the representative replied " I am sorry, I can not give out that information". Well, if the bank I have my money in can not tell me where my money is going then I am no longer banking with them. Looks like money is safer under the matress.
    • 0
      tj replies to Chris
      | 4 replies
      My guess is that the take is probably above $1 Million by now, assuming we are only seeing the small fraction that catch it promptly.  If the disputes were causing them problems, they would lower the amount, not raise it, to try to hide better, unless they just figure this "opportunity" can only run for a month or two.

      The dispute rates should be rising rapidly now, as people are starting to get bank statements that would show the charges, rather than just those who regularly check their accounts online.


      The banks, and even the Secret Service, follow the same types of policies:  setting some threshold below which they do nothing at all, not even collect and merge information from consumer complaints.  The crooks already know this, and have been exploiting it by keeping their thefts small and maintaining some illusion that this is some "legitimate" business.

      If you want something to happen, embarass them.  Go to the press.  Their interests are different from banks trying to balance "risk management" with "cost control".  They like a story, and lots of consumers dragged through paperwork over unending fraudulent charges by their banks fits into a major topic of current interest: i.e. "What's wrong with our banking system?"

      Bob Sullivan at Red Tape Chronicles has reported on similar scams in the past, such as small charges fraud by Russian or Eastern European criminals, and also reports on consumer "red tape" problems, which non-stop bank fraud disputes clearly create.  Based on his stories, he gets his information from consumers with problems contacting him.

      As a similar example, the Corona Scam languished for almost 2 years, with a steady stream of complaints rolling in to FTC, FBI, state AGs, etc. Only 3 or 4 news stories showed up across the country, although most of the complaint forums showed steady complaints of illegal collection the whole time.  The scam kept going and growing by using and adding new names every few months, to hide that it was all run by the same people.  The moment the FTC raid occurred, the local press was tipped off by a consumer, and it still took about a week for them to even believe it.  After that, it spread to Washington Post, Wall Street Journal, Huffington Post, and on, and on, within about a week.

      You are looking at lemming behavior.  You want lemmings to move?  Show them that another lemming is ahead of them.  Start with the press.
      • 0
        tj replies to tj
        The other way to focus attention on this problem is to emphasize the additional problems created by charges made to debit cards that remove money from checking accounts.

        The banks have oversold the safety and security of debit cards, to the point that many people have switched from credit to debit cards, and debit card transactions now exceed credit card transactions. They have also been very profitable to the banks, since they collect the merchant fees, and don't even have to advance the money.

        The reality is what we are seeing here, that you are out your money until you jump through a bunch of hoops, and even if you get it back, that can cost you.
      • 0
        tj replies to tj
        | 1 reply
        http://redtape.msnbc.msn.com/_news/2012/02/22 ... illion-annually

        "Survey: ID theft on the rise again, card victims jump by 2 million annuallyIdentity thieves have regained the upper hand, suggests a new survey released Wednesday by fraud research firm Javelin Strategy & Research.  The firm's annual survey of 5,000 consumers suggests a rise in the rate of ID theft during 2011, reversing a drop in identity-related that was found in last year's survey.  The main cause of the new increase: A return to old-fashioned credit card fraud.

        "There's been a rebound. … ID thieves have bounced back," said Javelin President James Van Dyke, explaining that meant about 7.7 million Americans were hit with credit and debit card fraud in 2011, or about 2.2 million more than in the previous year.
        ..."

        And now we know why.  The banks don't actually do anything to stop it.
        • 0
          tj replies to tj
          The above article suggests that this "digital star" story would be of interest as a follow-on example of the rising card fraud problem.
      • 0
        tj replies to tj
        The other tack is to contact your Congressman or Senator, or one who is on one of the banking committees.

        When a member of Congress contacts any agency of the executive branch, someone at a fairly high level basically has to drop whatever they are doing and respond, and the responder must consider whether this might show up when their budget is up for approval, or whether it might become the start of some committee investigation.  

        It tends to get their attention.
  • 0
    brittany pa
    | 1 reply
    i just called the hot line to my bank and told them about how i see im not the only one with these problems, well she told me to wrap my card up in foil! itl protect your card info. thought you guys would love to know that!
    • 0
      tj replies to brittany pa
      I was going to say something insulting about her, but thought no comment was better.

      These card numbers are NOT being obtained through RFID snooping.

      Consumer complaints are reporting too many different banks, and too many different locations around the country.

      Block your card number, and if it is a debit card, do NOT replace it.  Block any debit cards you have.

      The consistent pattern to consumer complaints is that they are having more problems when debit cards get fraudulently charged than with credit cards.
  • 0
    Missy
    | 1 reply
    Just found a $74.95 charge on my CC statment from Digital STAR (44208123737+442081237377)transaction date listed  1/31/12. CC company advises i is a Theatrical Agency in Gr.Britain. I understand their business account was hacked and  charges being made in their name. Had to cancel my credit card and will now have to fill out a fraud information kit for CC company.  I have never ordered from Amazon.  These are pros!
    • 0
      tj replies to Missy
      At least compared to the banks.

      They aren't really trying to hide their activities much, or even to look like the defunct ticket seller.

      The banks don't appear to have any way to shut it down, or at least they don't take the trouble.
      They just demand more fraud disputes from their customers.
  • 0
    Beth
    | 1 reply
    We got hit here in Toronto -- two charges for 74.95 in the past 2 weeks.  Called the bank and cancelled the card (CIBC) and gave them an earful about their inadequate response to shutting this company down for is obviously a well known internet fraud in North America.  Am emailing the Toronto Star about this now.  How many people need to be ripped off before the credit card companies block this account?
    • 0
      tj replies to Beth
      Getting the press involved is probably the only way to get any action on this.
      Once one source publishes, they will probably all pick up the story.
  • 0
    Steve
    | 1 reply
    Same charge like others have posted: Digital Star +442081237377 $149.99. Called my CU, filled out the Fraud claim paperwork. Now awaiting a new Card. Have no idea how my card # was obtained. I don't buy anything on Amazon.
    • 0
      tj replies to Steve
      Ask your credit union if any small pending charges showed up just before the fraudulent ones.

      If so, who were they through?

      Also ask them if this charge is reported to be made using the CCV number or not, and what bank or payment processor the perpetrator is using.
  • 0
    tj
    Google appears to be finding the first non-complaintwire reports of "digital star" fraud.

    Appears to be confused with some other order.
    http://www.scambook.com/report/view/78452/Digital-Star-+44-False-Advertising-for-19600.00-on-02-11-2012

    http://mbd.scout.com/mb.aspx?s=136&f=2637
    "Digital Star"! It is a foreign fraud. I caught it on one of my VISA Cards when I was billed almost 75 dollars. I went to the internet and found it and ...
  • 0
    Philip
    | 1 reply
    My 74.95 charge did not occur on a debit card but occurred on a credit card on 1/28/2012. I first suspected Amazon but realized that last month I switched  credit cards with Amazon.  I don't use the card very much but last month, before Christmas, I used it more often at local businesses.  I have often considered getting a  separate $500 credit card for online purchases and or accounts. Having different credit cards for different types of purchases could possibly help a person figure out where their number was stolen.  Being that this problem is occurring from different banks and from different locations I would think that someone got a list of credit card numbers through a system that authorizes credit card charges and then used the closed Digital Star business to make the charges. Based on the number of complaints just from this web site, Visa or Master are probably very well aware of this scam. Perhaps they let it go on in order  to obtain evidence to prosecute or pin down a person or group of interest. I hope we hear something soon about who is or was behind this scam. Its frustrating to have a credit card cancelled. If you have regular occurring transactions you have to contact each vender and change your number and wait for a new credit card. How much does it cost a bank to cancel 1000's of credit card accounts and refund money? Not knowing the source of a fraudulent charge this wide spread could have a significant impact on consumer confidence in using Master and VISA credit cards.
    • 0
      tj replies to Philip
      It should have even more impact on trust in debit cards, since they steal directly from your checking account.
  • 0
    Bill
    CIBC VISA card charged twice in last two weeks for $74.95 U.S.  Ontario Canada

    Looks like a global fraud to me.
  • 0
    Pamjmerc
    I just received my Visa credit card statement from PNC bank with a charge of $74.95 posted as Digital Star with a date of 1/28/12 (phone numbers +44208123737 and +442081237377.)  The CC rep told me the company is registered as a "ticket agent".  I canceled the card and filed a fraud dispute.  I rarely use this card and have never placed an order with Amazon so I don't think this company is at fault.

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