Consumer complaint received 2025-12-04 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a purchase shown on your statement — Credit card company isn't resolving a dispute about a purchase on your statement
Company: DISCOVER BANK
State: NY

Complaint narrative:
In XX/XX/XXXX, I was the victim of a scam involving impersonation of my employer. A scammer emailed me pretending to be my boss and instructed me to purchase XXXX gift cards as a team surprise. I believed the request was legitimate and, on XX/XX/XXXX, used my Discover card ( via XXXX XXXX at XXXX ) to buy {$600.00} in XXXX gift cards. I received no benefit from these purchases. 

Timeline of actions I took : XX/XX/XXXX First report to Discover I realized it was a scam and immediately contacted Discover through the app. Because the charge had not yet appeared on my statement, Discover told me they could not open a dispute until the billing cycle closed. 

XX/XX/XXXX Second report to Discover/ referral to merchants & police When the charge posted, I contacted Discover again. Discover told me they would not open a dispute unless XXXX refunded the gift cards, and advised me to contact local authorities. They refused to initiate a dispute at that time. 

XX/XX/XXXX First police visit I visited the XXXX. They advised me to contact XXXX first to see if the gift cards could be recovered. 

XXXX Contact with XXXX I contacted XXXX by XXXX and email. After several days, on XX/XX/XXXX, XXXX notified me in writing that they had marked the transactions as unauthorized purchases on their end. 

XX/XX/XXXX FTC fraud report filed I filed an FTC fraud report. 

XX/XX/XXXX Second police visit Police instructed me to obtain the transaction details from XXXX in order for them to open a case. 
XXXX refused to provide details unless I had an official police request letter. I attempted to escalate through multiple channels but was unsuccessful. 

XXXX Third police visit / case opened I returned to the XXXX, provided all documentation, and the police successfully opened a case and assigned me an official case number. 

XX/XX/XXXX Returned to Discover to open a dispute After receiving the police case number, I again contacted Discover through the app. They told me to call the Fraud Department directly. I called and opened the dispute, providing the police case number and all available documentation. 

Later, Discover sent me a notice claiming they could not reach me. 

XX/XX/XXXX Follow-up call with Discover I called Discover again. They said they were continuing the investigation but told me verbally that the dispute would likely be denied because this was a scam, not fraud. 

Around XX/XX/XXXX Discover denies dispute without notice I suddenly saw the {$600.00} charge appear on my statement even though I had not yet received any written notice. When I called Discover, they informed me that the dispute was denied because I had authorized the purchase via XXXX XXXX. They told me a letter was mailed. I received the denial letter shortly after. 

Why I am filing this CFPB complaint : Discover denied the dispute solely because I physically used my device to complete the transaction. However : The transaction was made under fraudulent misrepresentation and impersonation, which constitutes unauthorized use under Regulation Z when a cardholder is induced to transact through deception. 

XXXX officially marked the gift card redemption as unauthorized use. 

I acted immediately, contacted Discover multiple times, filed an FTC report, and worked with the XXXX  until a detective opened an official case. 

Discover repeatedly refused to open a dispute until much later, delaying the process. 

Discover failed to conduct a reasonable investigation and did not meaningfully consider the police case, the FTC report, or XXXX  written determination. 

Discover did not provide adequate explanations when I asked how they reached their conclusion. 

I am requesting that CFPB require Discover to : Reopen and properly investigate the dispute ; Reverse the fraudulent charges ; Comply with Regulation Z regarding unauthorized use under misrepresentation ; Provide transparency regarding their investigation. 

I have documentation including : 1-The FTC fraud report XXXX email confirming unauthorized purchase 3-chat records with discover 4-Discovers denial letter 5-Screenshots of the scam communication 6-Police case number from XXXX : XXXX Thank you for your assistance.

Company response to consumer: Closed with explanation