Fake Bank Chargeback Trap Scam
Fraudsters impersonate a victim's bank to manipulate them into initiating or blocking chargebacks in ways that benefit the scammer rather than the victim.
Part of: Chargeback Traps
Last reviewed: 8 June 2026
Banks handle billions of card transaction disputes every year through the formal chargeback process. Scammers exploit consumers' incomplete understanding of this process in two opposing ways: either by impersonating the bank to discourage a legitimate chargeback (so the scammer keeps money already paid), or by coaching the victim to file a fraudulent chargeback on their behalf (first-party fraud, which the scammer benefits from).
In the first scenario, a victim who was scammed in an online purchase tries to file a chargeback. A fake bank agent calls to say the dispute has been reviewed and declined — often before the real bank has even processed it — and that accepting the outcome now is the only way to avoid a 'fraud flag' on the account.
In the second scenario, a scammer recruits the victim as an unwitting 'money mule,' coaching them to buy something and then immediately dispute the charge as unauthorised so the scammer receives refunded money while keeping the goods.
How this scam works on the Your Bank brand
In the chargeback-blocking variant, a victim files a genuine dispute with their bank after being scammed by an online seller. Within hours, they receive a call from someone claiming to be the bank's disputes team, who says the evidence was reviewed and the dispute was denied — and that re-filing would trigger an investigation of the account for fraudulent use. The call is timed to discourage escalation. The real bank has not yet processed the dispute.
In the chargeback-recruiting variant, a scammer contacts someone online (often via a romance or job-opportunity angle) and asks them to make a purchase using their card, promising to reimburse them. They then instruct the victim to dispute the charge as unauthorised so the card issuer refunds the money. The scammer keeps the goods, the victim's bank reverses the charge, and the victim faces consequences for fraudulent chargeback activity.
Fake bank chargeback emails also instruct victims to pay a 'processing fee' to open a dispute — a fee that does not exist in reality.
Common red flags
- A 'bank agent' calls to tell you your dispute was denied before you have received any written communication.
- You are told that re-filing a dispute will result in your account being flagged for fraud.
- A stranger coaches you to make a purchase and immediately dispute it as unauthorised.
- The bank requests a 'dispute processing fee' — banks do not charge fees to investigate chargebacks.
- The call about your dispute uses pressure tactics to make you accept the outcome quickly.
- The 'bank' caller cannot confirm your recent transaction history accurately when tested.
- The instructions you receive conflict with what your bank's official app or letter says.
How to protect yourself
- File and manage all disputes through your bank's official app, online portal, or branch — not through inbound phone calls.
- Know that legitimate chargebacks have no upfront fee.
- Never file a chargeback on behalf of a third party or at someone else's instruction.
- If you receive a call about a dispute outcome, hang up and call your bank directly to verify.
- Keep all evidence of your genuine purchase dispute — order confirmations, delivery tracking, seller communications.
How to report it
- Report the fraudulent call to your bank's fraud department using the number on your card.
- Report to the FTC at reportfraud.ftc.gov.
- File a complaint with the CFPB at consumerfinance.gov/complaint.
- Report to ic3.gov if significant funds were involved.
- Report caller ID spoofing to the FCC at fcc.gov.
Frequently asked questions
Do banks charge a fee to process a chargeback?
No. Filing a chargeback dispute with your bank is free for cardholders. Any request for a fee to open a dispute is a scam.
Can I lose my bank account for filing too many chargebacks?
Banks may close accounts for patterns of abusive chargeback behaviour. However, filing a single genuine dispute because you were defrauded is your right as a cardholder and will not result in account closure.
A stranger asked me to make a purchase and dispute it. What should I do?
Do not follow these instructions. Deliberately filing a fraudulent chargeback is a form of bank fraud and can result in criminal liability for you, regardless of who asked you to do it.