Chicago man can't get money back after falling victim to funeral fundraising scam

CBS News

2 days ago

After months of back-and-forth with his bank, a Chicago man said he is still out thousands of dollars after he was scammed while walking in Lakeview.
He was conned by a scheme that has come up in the headlines several times this year, involving scammers posing as people needing help funding a funeral.
For the past five months, Paul Mitchell has been in talks with Citibank. He turned to CBS News Chicago when Citibank would not refund his money.
But still, nothing has been done.
Mitchell said it was a story that tore at his heart. He said four young men came up to him and his friend at the corner of Southport Avenue and School Street in March, asking for donations to pay for a brother's funeral.
"They said: 'No, we can't accept cash. We can only take credit cards,'" Mitchell said.
So Mitchell used his Citi card. But instead of paying the $10 he had intended to give the young men, he was charged $5,000.
Citi sent him a notification saying a person named Carey Wade was the merchant. The bank asked if it was fraud, and Mitchell said yes.
"And they assured me, 'Don't worry, the charge will be rejected,'" Mitchell said.
But Mitchell said at some point, the bank approved the $5,000 charge — and for the last five months, he has been trying to get it reversed.
"I was asked by Citi, 'Did you have your credit card in your possession at the time?'" said Mitchell. "And I said yes, and that changed the whole perspective in their mind of the incident."
Steve Bernas with the Better Business Bureau said some banks and credit card companies have decided they do not have to reimburse when customers give someone permission to use their credit cards.
"You gave them the money," Bernas said. "You gave them the access to your phone or your account — even if it's a fraudulent purchase."
Bernas said people like Mitchell should send repeated complaints and report to the higher-ups, and physically go visit the bank. He also said anyone else in a similar situation needs really to vet the people asking for donations.
"Usually, a legitimate person will want your money today, they will want it tomorrow or next week," said Bernas. "A scammer wants your money now. They want your phone."
Mitchell said Citi told him since his card was not lost or stolen, the charge on his card was not fraud. He said the bank asked him to send a copy of the receipt, but since this was a scam, he had no such thing.
"Frustrating in my mind that they've taken such a stance," Mitchell said.
CBS News Chicago reached out to Citi on Tuesday. The bank declined to comment, because it cannot share customer details.
The Better Business Bureau said a woman in a Lincoln Park fell victim to the same scam.
The Chicago Police Department said it is investigating, and no arrests have been made.