American Express Membership Rewards - Amex and fraudulent charges - Help

Sorry, but this will be a long post.

Story:
About a month ago, someone stole my father's amex plat business card number. What they did was (which I don't know how they did) call up and do a full payment of the balance on the account from the linked checking account and then proceed to charge some $55K from a store in Beverly Hills (while the card was used that day in Chicago suburbs). My father, checking the Amex almost daily noticed this charge and alerted amex. The account was closed and they opened a new account for us and reissued new cards.
Since then it has been nothing but issues. First off, they are declining almost every charge and he has to keep calling in. And now today he received a letter in the mail stating that the fraud charges will not be covered and he has to pay the balance (some $44K) PLUS the fraud charges ($55K) and they require more info to continue the claim. What new info? He told them everything already multiple times and while the amex rep was getting info, they disconnected. With all these issues, he averages at least 4x a week on Amex calling and some hr on the phone every time. He keeps getting bounced around from dept to dept and getting disconnected. This has been overall very aggravating for him as it is not his fault the card number got stolen and he does want to get this resolved.
What adds to the interesting part is:
1. He never did more than a few thousand as check payment. Never in the double digits.
2. They call my father up for a $200 (seriously!) multiple times. They decline purchases over $1k unless we call them up before. They call him up to verify any charges but not on some $55K one.
3. That was a manual entry into the terminal - not even a swipe. Thus some guy with a piece of paper and the card number went in there and typed it in. How a store allows that, I don't know.

What recourse does he have? He is fed up and sick and tired of dealing with Amex, including sine this is his 25th year as a Amex client. How can he proceed? He just wants this to get straightened out and get this headache over with.

I'd contact the executive offices. They resolved a couple of serious issues I had years ago very quickly.

I'd contact the executive offices. They resolved a couple of serious issues I had years ago very quickly.

Do you happen to have the number/contact info?

What recourse does he have?

Did he dispute the charges in writing as required by the Fair Credit Billing Act (http://ftc.gov/bcp/edu/pubs/consumer/credit/cre16.shtm)? Strictly this law does not apply to business accounts, but he should follow the requirements to the letter.

Did he dispute the charges in writing as required by the Fair Credit Billing Act (http://ftc.gov/bcp/edu/pubs/consumer/credit/cre16.shtm)? Strictly this law does not apply to business accounts, but he should follow the requirements to the letter.

I don't think in writing. but over the internet and over the phone.

I don't think in writing. but over the internet and over the phone.

If the charges occurred a month ago there is still time. With this amount of money at stake I would follow the statutory process without any deviation.

If the charges occurred a month ago there is still time. With this amount of money at stake I would follow the statutory process without any deviation.

Thanks. Looks like he has a total of 60 days, so he has enough time to do that this week and mail it out via Fedex/UPS.
If someone has the executive address he can also mail it out to them.

Found this address in a 2007 post:

Address to a specific officer (e.g., Kenneth Irvine Chenault, CEO, American Express, World Financial Center 200 Vesey Street New York, NY, 10285-0001

Bloomberg is very handy for finding out executive officer names and addresses. Here are some that you might send to, depending on your father's situation and account:

Edward Gilligan (Vice Chairman/Head: Small Business)
Stephen Squeri (Group President: Global Corporate)
Daniel Schulman (Group President: Enterprise Growth)
Joshua Silverman (President: US Consumer Services)

I have had success using this method in the past--not about an Amex issue specifically, but other corporate aggravations. It helps if you write a to-the-point, concise, non-ranting letter that states exactly what the company did wrong, exactly what you want done to solve the problem, and nothing more.

... to-the-point, concise, non-ranting letter that states exactly what the company did wrong, exactly what you want done to solve the problem, and nothing more.

If it were my money I would focus exclusively on the disputed $55,000 transaction. Leave the annoying overly zealous transaction verification calls for another discussion.

Also, contact the bank and Amex verbally and in writing to immediately remove the connection between Amex and the linked checking account.

-David

Also, contact the bank and Amex verbally and in writing to immediately remove the connection between Amex and the linked checking account.

-David

That was already removed.

Another person from bloomberg I found that might be appropriate:

Katrina R Lane
Exec VP:Consumer Cards & Experiences
American Express Co
World Financial Center
200 Vesey Street
New York NY 10285
United States
+1-212-640-2000

Thank you all for the prompt replies.
I will keep this thread updated on what happens.

^^ah I would follow MIA's advice to the Letter (pun intended) If the charges occurred a month ago there is still time. With this amount of money at stake I would follow the statutory process without any deviation.

fyi.. you have here what is often called a "bust out" credit card theft crime. You will find many complaints on flyertalk about card members complaining about why xyz credit card company will them not let them pre-pay a card for a higher credit line to cover a purchase and this is exactly the reason why.

I would not be shocked if Amex thinks something fishy is up and is being extra cautious just in case this was an inside job done by the customer. Your complaint about small charges not going through is because crooks do small test charges to see if they have been shut down. A crook making a small purchase that is declined is not going likely get much attention versus a large purchase.

Oh and Amex may think your father has a mistress or just went crazy for a short period. Fyi...You do remember the story about the man who charged over $100,000 at the strip club at NYC and then tried to dispute it right?

Dear jason8612:

I am very sorry to read about these fraudulent charges. Mia has already given great advice for your letter to Amex. ^

Just a tiny slice of additional advice: If the merchant hasn´t swiped the card he could use two types of transactions: Customer present and Customer not present (whatever the correct denomination in Amex terms is).

So you may get additional information out of that. If he states the Cardholder has been there you may fight against that with any kind of opposite information.

E. g. a time account slip of the employer that he has been working, Internet/phone info that he has been not at the shop at that time. (If i have understood correctly it was used in another "far-away" city). Maybe some gas bills, supermarket purchases of the same time/date in your home town. So pack as much additional information as you can into that case. :-:

IMHO I *think* that it was a fraudulent activity of the merchant or a person employed there. In 10+ years of Amex membership I hadn´t any suspicious activity on my account.

Besides only one where I have lost my card number and they replaced the card within 24 hours or so (very impressive). But in that case I changed the number only for crime prevention. By the way Amex charged NOTHING for the replacement card. ^

So I am convinced that Amex is a reliable company.

To update.
My father sent out yesterday the letter (from the link Mia posted) to all the names listed above plus the fraud dept and included some info, but kept it to the point. Also he included proof he was at work in addition some local town receipts (with his name) that he was in town.
So there's no way he could be in town working and charging at the same time.
It had to be some sort of inside job as I don't see any merchant putting a charge that large through without the physical card.
I will see what they say (hopefully some response soon)
The declining small charges - I understand that, and they should be declined as it is usually what the thief does to check if the card is valid, but declining charges on my father's account happens quite often. We would be out at dinner and he would use the card and would have to call up, or at the store, or wherever. Usually a few times a month. He started moving business to other cards because of it (Office Max/Staples as a example. He would go in there and buy stuff for work (d'oh business card in the same town as the mailing address buying office supplies...) and get declined. Then call up amex, spend some 10min on the phone to verify it is him to buy some supplies got annoying and this happened at the same store multiple times) so how a $55K charge goes through without a single phone call or a raised eyebrow is just wrong.
I had him mail in proof he was at work (not difficult at all as he works all the time) but the big issue is how Amex is handling it. Instead of calling him up and just asking him for something directly, they transfer him to different departments, put him on hold, disconnect him, and don't seem to be any help at all. And it really gets him angry including since he is trying to help.

After this I'm sure my father will take his business somewhere else.

....The big issue is how Amex is handling it. Instead of calling him up and just asking him for something directly, they transfer him to different departments, put him on hold, disconnect him, and don't seem to be any help at all

I would not be at shocked if this is being handled by a special area/team of the amex fraud department and I do think this team is even set up for inbound calls.

I trust your father is not relying only on internet advice. I would consult a lawyer, and a police report needs to be filed, but the lawyer can advise which jurisdiction.

If the charges occurred a month ago there is still time. With this amount of money at stake I would follow the statutory process without any deviation.
Writing snarky letters to executives is a waste of time, effort & money. They all get routed to the same place. OP's father's problem is that he's got a business, not a consumer card, so he's got none of the protections.

For this sum of money, I'd turn this over to my business' lawyer. Bad business credit can affect a whole lot more than in other places.

As to the declination calls, just get used to it. Clearly they believe that your father was complicit in the fraud and they will be extra careful for a good long time.

Writing snarky letters to executives is a waste of time, effort & money.

No one advocated a rude letter, just the opposite. The distinction between business and personal cards pertains to disputes between the cardholder and a merchant, and does not relieve American Express of its obligation to investigate fraud.

No one advocated a rude letter, just the opposite. The distinction between business and personal cards pertains to disputes between the cardholder and a merchant, and does not relieve American Express of its obligation to investigate fraud.

He will see what they respond early next week - if not he will have the lawyer proceed.

Sorry to hear that, I have been a victim of fraud before and this is what I did:

1) Always file an official police report. Do not think this is too much trouble, but this actually protects you and get the credit card company to take this more seriously, as the police is now involve and it is also your right to ask the police to investigate and push the issue, and if a police report is filed, they have a right to follow up with the credit card company on their process and procedure. In short, a police report make sure the credit card company doesn't give you any BS.

2) File it with FCC, they have a special link for fraud reporting, and again, when need to, FCC can get involve.

3) File it with BBB. They usually have someone that is willing to help the consumer deal with credit card company that gives people too much BS.

4) Don't bother to spend time with minions. Tell them you want to speak with manager and all the calls are recorded on your end to keep an open record, and will be send to the press and lawyer when not handled properly.

These things have the surprising effect of having them ruling in your favor real fast.

2) File it with FCC, they have a special link for fraud reporting, and again, when need to, FCC can get involve.


I think you mean the Federal Trade Commission (FTC). Also, there is now the Consumer Financial Protection Bureau (CFPB (http://www.consumerfinance.gov/))

4) Don't bother to spend time with minions. Tell them you want to speak with manager and all the calls are recorded on your end to keep an open record, and will be send to the press and lawyer when not handled properly.

Just to clarify: are you suggesting that you should not only record the calls yourself, but advise Amex that you are doing so and that you will send the recordings to "the press and lawyer when not handled properly?"

I think this is exceedingly bad advice. If you tell anyone that you are recording the call and will send the recording to "the press and lawyer," they are going to do the absolute minimum required by their job position, which in many cases is to do actually nothing other than transfer the call to another department, or to take down information you give them and provide no information themselves or take any proactive action to resolve the situation.

Regarding the filing of a police report, I'd recommend doing so with the Beverly Hills Police Department. After all, that's where the crime occurred. Although other jurisdictions (such as where the cardholder lives) might also work, by doing it in Beverly Hills, it's far more likely to get the ball rolling toward a resolution. In particular, it would seem that for a theft of that size (and actually under California law, it would probably be a burglary, as with a fraudulent credit card transaction, it would be reasonable to assume that criminal intent was formed prior to entering the business, which means trespass + theft, which means burglary), you have a good chance of getting a detective's notice to investigate, rather than just a report being taken. You didn't say what kind of merchant it was, but I would imagine that any merchant in Beverly Hills that sells goods or services that could rack up a $55,000 charge in one transaction would have good video surveillance in place. The investigating detective would probably pay a visit to the merchant and retrieve images of the bad guy. In addition to helping perhaps solve the crime, these images would also help to establish that the cardholder was not the one that made the purchase.

Sorry to hear that, I have been a victim of fraud before and this is what I did:

1) Always file an official police report. Do not think this is too much trouble, but this actually protects you and get the credit card company to take this more seriously, as the police is now involve and it is also your right to ask the police to investigate and push the issue, and if a police report is filed, they have a right to follow up with the credit card company on their process and procedure. In short, a police report make sure the credit card company doesn't give you any BS.

2) File it with FCC, they have a special link for fraud reporting, and again, when need to, FCC can get involve.

3) File it with BBB. They usually have someone that is willing to help the consumer deal with credit card company that gives people too much BS.

4) Don't bother to spend time with minions. Tell them you want to speak with manager and all the calls are recorded on your end to keep an open record, and will be send to the press and lawyer when not handled properly.

These things have the surprising effect of having them ruling in your favor real fast.

Forget about filing a local police report. This fraud was perpetrated over state lines and the local police won't investigate it. I found this out when I tried to file a local police report on an Amex credit card fraud issue. Instead, you should contact the nearest field office of the U.S. Secret Service. They are the PRIMARY Federal agency charged with investigating credit card fraud as explained on their website at www.secretservice.gov/criminal.shtml. They WILL investigate credit card fraud, especially if the dollar amount is as high as the OP says it is. When I contacted the U.S. Secret Service, they opened an investigation for my identity theft credit card case involving just $5,000. They found out who perpetrated the fraud but he moved out of the area and could not be tracked down.

What they did was (which I don't know how they did) call up and do a full payment of the balance on the account from the linked checking account

What are the details of this? With a potential fraud of this size, I would think that Amex would have run down the details of this part of the puzzle: have they pulled the recording of the call where the payment was made? What was the Caller ID for this call?

What are the details of this? With a potential fraud of this size, I would think that Amex would have run down the details of this part of the puzzle: have they pulled the recording of the call where the payment was made? What was the Caller ID for this call?

They haven't We haven't heard anything on the matter so far.

To update:
Yesterday evening my father received a phone call from a Amex exec. They received the letter and the enclosed proof that he was nowhere near Beverly Hills. He apologized a bunch to my father and they approved the dispute and will send out a new bill (corrected).

Thanks for all your help!

To update:
Yesterday evening my father received a phone call from a Amex exec. They received the letter and the enclosed proof that he was nowhere near Beverly Hills. He apologized a bunch to my father and they approved the dispute and will send out a new bill (corrected).

Thanks for all your help!

Really great news :D

Forget about filing a local police report. This fraud was perpetrated over state lines and the local police won't investigate it.

Not always true. Recently, I had a bunch of attempted unauthorized charges on my AmEx. Most were blocked by AmEx or the vendors, as the shipping destination wasn't in my state, nor was it a familiar address. I filed a report with my local PD, who did contact the vendors to track down the destination shipping address. They worked with the PD in that jurisdiction, quickly tracking everything to an abandoned apartment where goods were being amassed for truck transport to Mexico.

The local PD also suggested filing a report with the FBI...although not actionable, feds as well as local PD use this database to try to create correlations:

http://www.ic3.gov

Writing snarky letters to executives is a waste of time, effort & money. They all get routed to the same place. OP's father's problem is that he's got a business, not a consumer card, so he's got none of the protections.

Snarky letters might not get you anywhere but letters to executives often get results, proof provided by the OP. My wife works for a fortune 500 company and handled disgruntled emails addressed to the CEO. She had a lot of latitude in resolving problems, much more so than if they were sent to someone else.