Consumer complaint received 2022-05-23
Company: DISCOVER BANK
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement
Sub-issue: Credit card company isn't resolving a dispute about a purchase on your statement

Complaint:
On Friday, XX/XX/XXXX at XXXX a message came up on my laptop from XXXX saying my laptop has been disabled and to call them immediately to rectify the situation. I literally couldnt do anything on my computer so I thought it was legit. XXXX answered and had me do a few things to see what was happening. He discovered that my laptop had been hacked. He had me download something so he could have remote access. He said my laptop, phone, email and Discover card had been taken over. He told me to get my Discover card and he would do a 3 way call. He said they probably wouldnt talk to me with him on the phone for security purposes. So XXXX from Discover called me back, and when she called back it literally said Discover so again I thought it was the real Discover. She said that there was a {$7000.00} charge for an adult website in the XXXX XXXX. I said I would have gotten an email because I have alert set up for anything over {$50.00}. She said we sent you an email but the hackers got control of your email and responded that yes it is me go ahead and approve transaction. She gave me two options to rectify the situation. The first one made no sense, but the second one was to go and buy gift cards in the amount of {$7000.00} to put that on a new Discover card so when the $ XXXX charge tried to go through, the money wouldnt be there. She said time was of the essence and I had to act fast. She instilled panic in me and so I wasnt even thinking clearly. She said if I didnt do this my laptop and everything on it including all of my passwords would be held hostage and would be accessed by these people. So of course I wanted to make the situation right. I believed her. I was acting under duress. They first had me go to XXXX to buy XXXX {$500.00} gift cards. Then to XXXX XXXX to buy XXXX {$500.00} gift cards. Then I went to XXXX but the transaction wouldnt go through. They then transferred me to the real Discover and I said I was transferred which that should have been a red flag to Discover. The XXXX transaction never got approved. I then had to go to XXXX to buy XXXX {$500.00} XXXX gift cards. I was told they would cover the other {$500.00}. I even got texts from Discover, so again thought it was the real Discover having me do this. Around XXXX I realized I was being scammed. I immediately called all the gift card suppliers but they had already been used. XXXX opened up a case, case # XXXX. XXXX opened up a case, I spoke to XXXX Case # XXXX. They said that the scammers had the funds transferred to their XXXX XXXX. I spoke to XXXX they used the cards at XXXX, XXXX. Merchant ID is XXXX, Transaction IDs are XXXX and XXXX. I called XXXX Sheriffs department who came out and took a report on Saturday XX/XX/XXXX at XXXX. I spoke to Deputy XXXX Badge # XXXX and Report # XXXX. He took my statement and took pictures of all of the gift cards and receipts. Deputy XXXX said I was acting under duress and Discover should be held responsible. He said not to take no for an answer and to keep going higher up until the charges are covered. I called Discover on XX/XX/XXXX at XXXX to tell them I had been scammed. I spoke to XXXX and she told me that because they are gift cards, Discover would not be able to help me. On XX/XX/XXXX at XXXX. I spoke to XXXX, gave her report #, officers name, badge #, and phone number. On XX/XX/XXXX at XXXX I spoke to XXXX in fraud and she took my statement. She also said that because these were gift cards more than likely nothing they can do but it will be assigned to investigation within XXXX days. On XX/XX/XXXX, spoke to XXXX in investigations I explained again what happened and she also said that unless it was a case of someone using my card, it more than likely wont get approved. I asked to speak to her supervisor. She said she was unavailable. She said that XXXX would call me back. On XX/XX/XXXX at XXXX, XXXX the supervisor in Investigations called me I told him how I dont appreciate how I am being treated as if I did this on my own free will and how I would be held responsible for these charges. He said that he will document that Discover should have been more aware of the tranactions when I was transferred to them especially since its the stores scammers have people go to, high amounts, and even amounts so clearly it wasnt merchandise. I asked if he wanted me to send over pictures of the gift cards and receipts. He said no. I asked if he will be obtaining the report copy from the police and he said that they would definitely be working with the police on this. 

Key Points Why Discover Should Cover This : While on the phone with the scammers, they connected me with the real Discover. When the real Discover came on they asked how can I help you. I said I dont know I was just transferred to you. This happened four times when the transactions were being declined. This should have thrown up a HUGE red flag. One, there must be a way Discover could have seen who transferred me to them. Also, the fact that I kept calling, or rather being transferred, asking for all of these transactions to go through-high even amounts, clearly not buying merchandise. Discover should have asked like what are you trying to buy, whats the reason for going to multiple stores, also when the transaction didnt go through at XXXX, then going to a different store to see if it would go through. That should throw up a red flag. 
When the scammers called me, the name Discover came up on my phone, so I thought it was the real Discover. 
I was getting text messages from Discover to approve transactions. 
Discover fax XXXX, case # XXXX I have contacted the media and they reached out to Discover. I have written to Discover explaining what happened. I have appealed Discover 's decision. I have filed a complaint with the FTC and CA state attorney general 's office. I also of course filed a police report.

Company response to consumer: Closed with explanation