Saturday, December 3, 2011

Anonymous' 'Robin Hood' attacks may benefit banks

Hacktivist group Anonymous have joined up with another group known as TeaMp0isoN to hit back at banks in support of the Occupy movement by using stolen credit cards to donate to charities. But "Operation Robin Hood" could actually leave ordinary people and and charitable organisations out of pocket while boosting bank profits.
It is all down to the way credit card chargebacks work. Those who have their credit card details stolen and notice fraudulent charges will complain to their card provider, who will in turn contact the merchant that accepted the stolen card payment to initiate a chargeback. If the merchants haven't followed proper procedure, they could be liable for the entire payment and may even be fined by the credit card company if chargebacks exceed a certain level.
Of course, anyone unlucky enough to have their credit card details stolen and without noticing the charges will be liable for the full fee. If that wasn't enough, banks also make a profit on every credit card purchase, thanks to transaction fees.

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