Consumer complaint received 2023-01-15 00:00:00
Product: Credit card or prepaid 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: CAPITAL ONE FINANCIAL CORPORATION
State: CA

Complaint narrative:
I am submitting this formal complaint against Capital One due to their failure on XX/XX/2022 to freeze my credit card purchases of sets of gift cards that they had detected were suspicious of a fraudulent scam. Not only did Capital One allow these charges that were outside of previous vendor or purchase patterns, the company increased my credit limit during the fraudulent scam process to allow for additional purchases. They are not taking any responsibility for their system failure. 

On Saturday, XX/XX/2022, I was using my desktop computer. I have XXXX in my fingers so they are swollen and they shake. While on a website, my fingers must have accidentally hit a sidebar button on the screen. The screen turned red, an alarm went off and it blared continuously. The computer stopped working entirely, the screen froze, and the cursor didnt work. Then a yellow box appeared on the screen with a message that the computer had been compromised and to call Microsoft Tech Support immediately. I was horrified that my computer had been compromised and fearful that my personal information could be stolen and my accounts accessed. I am an older man with XXXX and I do not understand computers very well. I called the number indicated on the screen : XXXX. The call was answered with a response, Microsoft Tech Support. I asked for confirmation that I had called Microsoft Tech Support and a man answered with, yes, gave me his name ( XXXX ) and ID # ( XXXX XXXXXXXX ). He said that he could see what I was calling about and that my computer system had been compromised. There were other operators talking with customers in the background so I thought it was legitimately Microsoft Tech Support. XXXX said that a trojan horse had been installed on my computer that would release viruses that would infect the computer. He said the computer had been attacked XXXX times and I would need to pay for each attack to resolve the problem. He directed me to purchase Microsoft XXXX gift cards at XXXX or XXXX. In my panic, I did so. XXXX said I needed to hurry because the longer it took for me to send payment, the faster the viruses would spread throughout my computer. 

I made an initial {$400.00} purchase of these gift cards at Walmart using my bank debit card. When I tried to use the debit card to purchase an additional set of gift cards, my debit card didnt work. At the direction of XXXX, I used my credit card to make several more sets of gift card purchases totaling about {$3000.00}. During this time, I was on the phone with XXXX and he kept assuring me that they ( Microsoft ) were in the process of reimbursing me. I even received a text from XXXX, phone number ( XXXX ) XXXX, stating that my refund was processed ( reference number XXXX ). I received several more texts stating that my reimbursements had been processed, so I believed that I needed to continue purchasing gift cards and sending them to Microsoft Tech Support in order to resolve the issue with my computer being compromised. This was all happening while I was out of my mind with worry and fear. 

Subsequently, XXXX said that because my computer had been hacked by an international group, it would cost more to resolve the issue. He said Microsoft needed an additional {$1000.00}. My only income is Social Security. I told XXXX that I didnt have the money. When he responded that they would get back to me on Monday about the reimbursements, it only then occurred to me that this may have been a scam. 

On Monday, XX/XX/2022, I contacted my bank and learned that they had intentionally frozen my account after the initial gift card purchase using my debit card due to suspicious activity and suspected fraud. They froze my account to block any further gift card purchases to protect me financially. Furthermore, they absorbed the cost of the debit card purchase which was based on the scam. 

When I contacted Capital One on Monday, XX/XX/2022, I was transferred to the XXXX XXXX XXXX regarding the gift card charges on my credit card associated with this scam. My case number is XXXX. I was told that they would launch an investigation. I subsequently received communication from Capital One dated XX/XX/2022, stating that they had found insufficient evidence of fraud because the charges had been authorized by me. 

How is it that my bank was able to immediately identify the xbox gift card purchase as suspect and froze my account to protect me financially when Capital One not only allowed for these unusual purchases, but they increased my credit limit to allow for additional unusual and suspicious charges to my credit card? 

It is my understanding that Capital One, as a credit card company, should be monitoring all transactions on my card and flag my card for possible fraud if there are unusual transactions. Typically, the only charge that is on my credit card monthly is for my T-mobile bill. I haven't purchased previously and I almost never shop at Walmart.

Why would they allow multiple purchases in rapid succession since that is something that should have set off the alarm bells for fraud/scam. A scam is a fraud which causes unusual charges, often in rapid succession. Capital One should have been able to identify these charges as a classic case of a scam in process and should have blocked the charges as my bank had done. Why didnt Capital One refuse these charges based on the information they had on my individual customer profile? And, it is completely inexcusable that they would increase my credit limit to allow for additional unusual charges when the earlier charges should have triggered a warning in their system. 

I received a text on XX/XX/XXXX that said it was from XXXXXXXX XXXX but there was no reference to it being from Capital One. I received another text on XX/XX/XXXX that did indicate it was from Capital One but it just asked if I had made a purchase of {$400.00} at Walmart. I replied yes. They replied saying, " Great! That's all we need to know. If your card was declined, try it again now. '' I answered yes because I had made the purchase, thinking it was what I had to do in order to resolve the issue with my computer being compromised. I didn't have any idea that I was in the middle of being had by a scam. Why didn't the texts express any concern that the gift card purchase was connected with a scam? Why didn't Capital One call me on the phone? If they had identified that the first charge of a gift card purchase was suspicious, why didn't they communicate this in their text? The language in the communication from Capital One assumes that their customers are tech savvy. The language they used did not alert me to them having a concern that I was being scammed. Capital One a system problem with their credit card monitoring regarding scams/fraud and they arent taking responsibility for it. 

Capital One should have declined these gift card charges. Capital One should write off my scammed purchase charges since they detected a concern but did not prevent/block the charges. 

I have filed an elder abuse incident report with XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX  of the XXXX XXXX XXXX Department ( # XXXX ) I am also filing a complaint with the XXXX XXXX District Attorney Consumer Fraud Unit regarding Capital One and I will be contacting Legal Aid to represent me. 

Thank you in advance for your assistance.

Company response to consumer: Closed with explanation