A South Elgin, Illinois, man says a $10 donation outside a Jewel-Osco turned into a $2,000 charge after he tapped his debit card to a stranger’s phone. ABC7 Chicago reported the case Oct. 1 as South Elgin police searched for two men shown in surveillance images.
Chris Louangrath told ABC7 Chicago that a group approached him outside the store asking for donations to help a young relative who had been a victim of gun violence.
Louangrath said he agreed to give $10 after the group offered a contactless payment option. He later checked his bank account and discovered that the transaction was for $2,000.
South Elgin police are actively investigating. Deputy Chief Brett Czechowski said fraud cases of this type can be felonies, while Louangrath said his bank ultimately approved his fraud claim and returned the disputed money.
He Says a $10 Tap Became a $2,000 Charge
Louangrath said he told the group he did not have cash. They offered to accept the donation by having him tap his debit card against a phone.
He believed he was authorizing a $10 payment. After leaving, he checked his account and saw a $2,000 charge instead.
Louangrath contacted his bank immediately. He told ABC7 that the bank initially issued a temporary credit but later said he could be responsible for the transaction because he had physically tapped the card himself.
He then contacted ABC7 Chicago’s I-Team. Louangrath said the bank notified him the following day that his fraud claim had been approved and the disputed money would be returned.
Associated Bank declined to discuss his account with ABC7, citing customer privacy. Square told the station that it has systems and policies intended to protect merchants and customers and may take action when activity violates its rules.
South Elgin Police Are Looking for Two Men
South Elgin police said the case remains under active investigation. The department is seeking information about two men shown in surveillance images.
Czechowski told ABC7 that frauds of this type can amount to felony offenses. Police are asking anyone with information about the men to contact the department at 847-741-2151.
Police also advised consumers not to hand their phones to strangers and not to tap a card or phone to complete a transaction with someone they do not know.
BBB Warns That Small Charity Taps Can Hide Much Larger Charges
The Better Business Bureau warns about contactless-payment scams in which someone posing as a charity fundraiser asks for a small donation but charges the card for a much larger amount.
The BBB identifies several warning signs, including being asked to tap without seeing the transaction total or being offered a receipt. It recommends confirming the merchant name and exact amount before placing a card or phone near an unfamiliar payment device.
The organization also recommends enabling transaction alerts and contacting the bank or card issuer immediately after discovering a suspicious charge.
Research an Unfamiliar Charity Before Paying
The Federal Trade Commission advises donors to research unfamiliar charities before contributing and to check bank or credit card statements afterward to make sure they were charged only the amount they agreed to donate.
The FTC says donors should learn the charity’s exact name, research it before giving, avoid being rushed into donating and pay attention to how they pay. The agency recommends donating by credit card or check.