Call Tag Scam
The call tag scam is not a new form of fraud by any means, but it became a widely known scam done over the Internet in the mid 2000's and in 2005, several large merchants suffered losses during the holiday season. This scam not only affects the cardholder who got their money stolen from them, but also the merchant whose goods were purchased with a stolen credit card. Since 2005, many online merchants are making statements on their website that claims they will make persistent actions to prosecute fraudulent claims.
The call tag scam begins with the scammer obtaining credit card information and purchasing merchandise from an Internet-based retailer with the name and address of the cardholder. The items are then shipped to the cardholder and in the meantime, the scammer will receive the tracking information in their email. The scammer then calls the cardholder as the online retailer and lets them know of the error in shipping the goods to the incorrect person. The scammer will then make arrangements with the cardholder to pick up the merchandise, via a secondary shipping company is unaware they are picking up stolen merchandise. This is called a "call tag."
The shipping company will then ship the merchandise to the scammer's actual address or a PO box they have set up. Later on, the cardholder will see the charge on their bank statement and inform the online retailer they want a chargeback, as they never purchased these items. The online retailer must then refund the money, thus losing money and merchandise.
If you have been victimized by this type of fraud, the best thing to do is follow up when you request the chargeback, as the shipping company shipped the merchandise to the actual criminal's address. In this way, this person may be tracked down and charged for the crime. To avoid having your credit card information stolen, be very cautious when purchasing merchandise online with your credit card, only purchasing from merchants with buyer protection and additional security.