Column: This bank is worried scammers may be cruelly paying off people's credit cards

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Capital One froze a SoCal customer's credit card because it was concerned a bank transfer to pay off $14,000 in debt may have been made by a scammer.

Scammers are responsible for all manner of fraud and mischief, including the theft of people’s identities, cash and financial information.

Before we go any further, let’s pause to acknowledge that fraud protection for credit cards is a very valuable service. Most cardholders likely are grateful any time a financial institution spots a questionable transaction and steps in to prevent losses. Then the coronavirus hit, his work hours were reduced, and he and his wife decided they needed to tighten their belts by making smaller monthly card payments.

What did happen, though, is that when he tried to buy some stuff at a Ross store, the cashier told him his Capital One card had been rejected. “It was embarrassing,” Castro said.He called Capital One and was informed his account had been frozen until he complied with the request for bank documents.

 

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