Case Studies

How Our CryptoTrace Solution Complements Chargebacks

This case involved the following MyChargeBack service: preparation of the chargeback request. 

The Basis for the Dispute

H.P. is a resident of Finland who took part in what he thought was a legitimate online investment opportunity. His initial deposits of just over €4,000 were made by credit card.

When H.P. realized that all of his investment deposits were being stolen, he attempted to convince the broker to issue him a refund. Predictably, his inquiries were rebuffed, so he finally contacted MyChargeBack for help.

Strategies and Tactics

At the outset, it was clear that there was an immediate opportunity for recovery regarding the credit card transactions. Being intimately familiar with the relevant card rules, as well as the national and international regulations, we prepared an airtight case for a chargeback and delivered it to our client to present to his bank.

In addition, the broker talked H.P. into transferring the equivalent of approximately €63,000 more in cryptocurrency. Cryptocurrency transactions are another issue entirely. There are no chargebacks for crypto, of course, since chargebacks are a right guaranteed by the credit card networks for cardholders, and there is no parallel protection for cryptocurrencies. Moreover, the blockchain provides a level of anonymity, which is why scammers are increasingly requesting payment in crypto. The merchant’s intentional insertion of a legitimate cryptocurrency exchange into the process, therefore, effectively laundered the digital coin.

To address this problem, MyChargeBack developed from scratch specific strategies and forensic capabilities to trace the path stolen cryptocurrency took across the blockchain from one exchange to the next. Our CryptoTrace service is designed to uncover the exchange where our client’s crypto was cashed out. Armed with that critical information, the client can then alert law enforcement agencies, which can demand that the exchange  provide them with the name of the individual who holds the account that held the crypto before it was converted into fiat currency. 

The MyChargeBack Difference

For most consumers and even experts in the field, a service-related chargeback in the investment category (even a phony one) is either highly complex, impossible, or even inconceivable and unknown. For us, however, it came as no surprise that our client was refunded 100% of the value of his credit card transactions.

MyChargeBack’s state-of-the-art cryptocurrency tracing and reporting services, moreover, have proven themselves to be the ideal complementary solution for consumers who were scammed out of their crypto. 

At a Glance: MyChargeBack in Finland

  • The case involved the loss of approximately €4,000 paid to a criminal online investment broker using a credit card
  • An additional €63,000 was sent in cryptocurrency to the broker through a crypto exchange
  • The credit card chargebacks were fully successful and 100% of the funds paid using the card were recovered
  • The path cryptocurrency transactions take through the blockchain can be traced using our cutting-edge technologies

Payment made by the bank

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