There is a new online money transaction site called XCOIN. I first learned of XCOIN by reviewing my credit card statement and seeing two charges on it that I didn't recognize. Both charges were to XCOIN showing a phone number (866-909-2646) located in Washington state. The two transactions were on the same date and the first one was for $1.00. The second charge was for $129.00. I called the 866 number and got a recorded message telling me to leave a message or log onto their website at xcoin.com. I logged on to XCOIN.COM and found it was similar to Paypal - a money transaction site, often used by online auction sellers. I then reported the unauthorized transactions to my credit card company which promptly credited my account with the disputed amounts and said they'd investigate the matter. I have learned that credit card companies get so many disputed claims that it isn't worth their staff time to investigate disputes for 'small' amounts of money. They investigate only the ones that involve thousands of dollars. I will probably never find out who used my credit card number or where they got the number from. This happened to me about 4 years ago and I reported it but never heard about it again after VISA credited me with the disputed amount. XCOIN's site claims to be very secure, promising under the heading 'HOW XCOIN PREVENTS FRAUD: Xcoin implements stringent verification processes when you register your credit card or bank account.'

The FAQ section then states under the question 'What is an unverified credit card?:

An unverified credit card could only be transacted a maximum accumulated amount of $1,000 into your Xcoin account. You will need to verify the credit card to remove the $1,000 transaction limit.'

Since my unauthorized charges were ONLY for $130, this must be an example of someone using an unverified credit card. How is this preventing fraud? How is this implementing stringent verification processes? They probably put through the initial charge of $1.00 to see if the card number was valid and when that transaction went through, they followed with a $129 transaction. I guess I'm lucky the amount wasn't $929 but then people would be more likely to spot that large an amount on their credit card statement.

I emailed XCOIN about the questionable transactions and they sent me an email asking for more details but my bank company advised me not to reply, asking me to let them take care of the matter. My bank said that further contact by me with XCOIN could be used by XCOIN to show that I established a relationship with them.

I'm writing this to caution you to examine all your credit card statements closely for transactions you don't recognize. Also, I'm writing to warn you about XCOIN's 'stringent verification processes' that turn out to be not so stringent if you are willing to risk less than $1,000.00.

Anonymous
Anonymous, Maryland
U.S.A.