Re: Visa Fraud

My genuine sympathies.
However, 1) you allowed a virtual stranger to accompany you from bar to
bar and 2) you signed credit card bills you couldn't read in a currency
with which you were not familiar. This makes no sense whatsoever, whether
traveling in Istabul, New York City, or Santa Barbara, CA.

On Sun, 2 May 1999, Majid Tehranian wrote:

> PRESS RELEASE
> 
> TRAVELLERS BEWARE:
> VISA AND MERRILL LYNCH PARTICIPATE IN INTERNATIONAL FRAUD
> 
> 
> May 1, 1999
> FOR IMMEDIATE RELEASE
> 
> For further information, please contact
> Professor Majid Tehranian
> Tel.: 808-988-9563; 808-955-8231; 808-956-3353
> Fax: 808-988-4483
> Email: majid@hawaii.edu
> 
> 
> In every major tourist city around the world, there are numerous traps
> waiting for the innocent tourists to fall into. That is partly the cost of
> world travel. However, when major financial institutions such as Merrill
> Lynch and Visa International, knowingly participate in the fraud, the
> issue is a cause for alarm.  
> 
> I have been a loyal customer of Merrill Lynch Cash Management Account for
> the past 20 years. I have never contested a single visa charge. But on
> March 1, 1999, I was defrauded of about $4000 for the price of a beer and
> a cup of coffee in Istanbul, Turkey.  I had no choice but to contest this
> outrage.  After two months of haggling with Merrill Lynch over the visa
> charges, despite previous assurances, Merrill Lynch and Visa International
> have refused to challenge the international fraud in which they are
> participating with the deceitful and extortionist establishments involved
> in this case.
> 
> I arrived in Istanbul on the late evening of February 28.  Because of jet
> lag, I could not sleep. I decided to take a stroll in front of my hotel,
> the Marmara, in the early hours of March 1. A smiling young man by the
> alleged name of Hassan Kivan, who introduced himself as a tourist guide,
> befriended me and asked to have a drink with him at a nearby bar. With his
> broken English, he seemed earnest and sincere.  He took me to two places
> that night at which I had a beer and a cup of coffee for which I paid in
> cash.   However, the managers claimed that the cash is not enough and
> asked for a credit card.  Assuming that I could always put a stop payment
> on it, I gave them my Merrill Lynch Visa card. They soon came back with a
> small slip that I could not read in the dark and, under duress, had to
> sign.  I left Hassan completely exhausted and dejected. But I asked him to
> write his name and phone number on the back of one of the visa charges.
> The next morning when I woke up, I wanted to know how much the two
> establishments have charged me. Since Turkish Lira is a highly inflated
> currency and the rate of exchange is about 360,000 TL to one U. S. dollar,
> I was thoroughly confused as to how much I was paying. Besides, the salons
> were dark and the men threatening.  To my astonishment, I discovered that
> the first establishment had charged $1803 for a beer, and the second one
> had charged $1995 for a cup of coffee.
> 
> I immediately called up Mr. Phillip Knorr, my Merrill Lynch Executive
> Accountant in Honolulu, to let him know of the fraud and to request a stop
> payment on the visa charges. He was sympathetic, told me stories of his
> own bad experiences in Istanbul, and assured me that the case would be
> easily resolved. He also asked me to report the incident to the Visa
> Dispute Section of Merrill Lynch and request a STOP PAYMENT. The memo was
> faxed on March 1, the same day, with a copy to Mr. Knorr. I also took the
> memo to the Hotel managers and my tourist guide, Mr. Katsumi Makishi of
> Magister Tours, Istanbul.  The hotel managers, Mr. Cem Gundes and Ms. Sima
> Molho, expressed sympathy and told me that this is a frequent occurrence
> in Istanbul.  They also sent me along with a hotel staff member to the
> nearest police department. From the careless attitude of the police,
> however, I soon realized that there is no use in a police complaint. The
> police are perhaps working hands in glove with the network of tourist
> traps. Mr. Makishi suggested taking me to another police station where his
> organization had some influence. We spent half a day waiting for the
> officer in charge. When he arrived, all he did was to stamp my report
> without recording the complaint. Discouraged by the police indifference,
> on March 4, I wrote a letter to the Turkish Minister of Tourism, Mr. Ahmed
> Tan, and requested investigation. To this day, I have not received a
> reply.  
> 
> I also pursued the matter by long-distance phone calls to the Visa Dispute
> Section of Merrill Lynch.  Ms. Merrie Michaels of that office told me that
> I should wait until the charges are cleared.  She also explained that
> sometimes, the fraudulent merchants decide not to submit the charges out
> of the fear of being prosecuted.  Upon return to home in Honolulu on or
> about March 12, I called up Mr. Knorr again to see what has happened. He
> again assured me that
> similar cases have been easily resolved.  However, he also urged me to
> call up the Visa Dispute Section directly because "they would listen
> better to a customer."  In my conversation with Ms. Sherry Alston at the
> Visa Dispute Section, however, I was told that since I had signed the visa
> charges on my debit card, there is nothing they can do for me. I brought
> back the bad news to Mr. Knorr who by now was ignoring my phone calls. On
> or about April 5, however, Mr. Scott Furukawa of the Merrill Lynch office
> in Honolulu called me up and asked to be updated on the case. He was
> courteous and sympathetic while repeating several times that he would have
> been equally outraged under the circumstances. He promised to call back in
> a few days to let me know of the results of his negotiations with the Visa
> Dispute Section.   
> 
> On March 8, Mr. Furukawa called me up to say regretfully that his efforts
> on my behalf have failed.  We ended the conversation by my telling him
> that Merrill Lynch and Visa Corporation were knowingly participating in an
> international fraud without attempting to severe their ties with the
> deceitful merchants. I informed him that I would therefore withdraw my
> account and publicize the case.  A few days letter, I received the
> followed letter from Mr. Furukawa:
> 
> "In reference to our telephone conversation today (March 8, 1999), Merrill
> Lynch will not be able to reimburse you for the March 2, 1999 visa charges
> in the amounts of $1,995.05 and $1,803.27 you made while visiting
> Istanbul.  While we sympathize with your claim of being victimized by the
> local establishments in Istanbul, you, nevertheless, signed your name to
> these transactions."
> 
> There are lessons to be learned from this experience.    First,
> undoubtedly, Merrill Lynch and Visa Corporation profit from international
> tourist business. That is legitimate. However, when they knowingly refuse
> to break off their relations with deceitful and extortionist
> establishments, they are actively participating in international
> fraudulent schemes.  Second, credit card payments are convenient,
> particularly when travelling abroad, but they open you up to a whole
> variety of fraudulent operations.  This includes adding a few digits in
> front or back of your actual charges.   Third, travelers must be
> extra-careful in their dealings with strangers.   My case clearly
> demonstrates this.  If it happened to me, it can happen to you.  
> 
> 
> 
> 

*****************************
Judi A. Kessler
Department of Sociology
University of California, Santa Barbara
Santa Barbara, CA 93106
Office:
Institute for Social, Behavioral & Economic Research
(805) 893-5427
6500jk@ucsbuxa.ucsb.edu
*****************************