How To Issue A DIY Chargeback After A Crypto Scam

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If you’ve been caught out by a crypto scam one of the first questions you’ll ask yourself is ‘how can I get my money back?’.

There’s no doubt that it’s difficult to secure the return of your funds from crypto scammers and fraudsters, but there are certain things you can try, including a Chargeback claim.

Dedicated crypto recovery companies and firms of solicitors who specialise in crypto fraud can help you with this, but they’ll charge a hefty fee to do so.

However, it is possible to take the DIY route and issue your own Chargeback.

Bear in mind though that it can be a time-consuming process and there are lots of hoops to jump through.

Your individual situation and the reason for your chargeback claim will also need to meet certain conditions.

Rules for Chargeback claims in relation to fraud and crypto scams vary from country to country and differ between debit and credit card providers so it’s worth double checking you’re eligible before getting started.

What is a Chargeback?

Put simply, a Chargeback is when your card provider reverses a transaction and gives you a refund.

It’s a mechanism in the world of payment processing that allows consumers to dispute a transaction and request a refund from their bank or credit card issuer.

It’s used by debit and credit card providers as part of a voluntary scheme to help consumers who have found themselves in a situation where a purchase goes wrong.

The scheme is used by banks, building societies, credit card providers and debit card companies.

Originally, Chargebacks were designed to protect consumers from fraud or unauthorised transactions.

However, they’ve since evolved to cover a much wider range of situations, such as disputes over goods or services not delivered as promised, damaged products and charging mistakes.

It’s important to note that the Chargeback scheme isn’t a legal form of consumer protection.

How do I make a Chargeback claim?

Once you’ve identified an issue with a transaction such as a crypto scam or fraud you need to gather as much information as possible about what’s happened and the merchant involved.

In the case of a crypto scam Chargeback, this means collating the details of the platforms, wallets and exchanges that you’ve used as part of any purchase.

If you’ve been in touch with any of the scammers via email or phone, then add this details to your supporting documentation.

The more evidence you can gather the better as this will strengthen your case with your debit or credit card provider.

In order to issue a Chargeback you need to have used a credit or debit card for your purchase otherwise you claim will not be accepted.

For example, if you’ve used your card to withdraw cash then used the cash to make the purchase you’re disputing then the bank will not pursue the Chargeback claim.

Most banks and card issuers will expect you to have raised the issue with the merchant prior to contacting them, made a formal complaint and asked for a refund.

Also, there’s no guarantee that your bank will pursue the Chargeback if they feel that your case doesn’t fit the criteria or the evidence is weak.

How does a Chargeback work?

Once you initiate a Chargeback claim, the process will usually follow these steps:

1. Your bank or card provider considers the evidence you’ve submitted and decides if they’re going to pursue a Chargeback claim or not.
2. If they decide to go ahead, they’ll launch an investigation using the evidence supplied by you.
3. It’s common practice for a temporary refund to be issued during the investigation process, but this doesn’t always happen.
4. The merchant who provided the goods or services will be given the opportunity to respond to the claim.
5. The bank will weigh up all the evidence and make a decision on your Chargeback claim. This could mean that the temporary refund is reversed if the decision goes against you.

Final word

The Chargeback process can become complicated and take up a considerable amount of time, but ultimately you could save yourself a packet on solicitor’s fees by doing it yourself.

If you need advice and help navigating the world of crypto and avoiding scams, then check out the services we offer.

Related post: Crypto scams help and resources