Scammer ripped off over 100 kickstarter's, now some projects threatened

I don’t have any idea how a credit card company could not have identified this guy was a fraud on their own. Since he pledged $1,000 to each one, some of the projects are now in trouble as he was the primary backer for them. His moniker comes from Southeast Asia, and if that’s where he resides it will be very hard to properly bring him to justice.

In a case like this I’d like to see Kickstarter, Amazon, and the credit card companies refill those lost funding numbers.

And welcome to the wonderful world of online payment processing.

There are a number of effectively bulletproof scams you can run using your CC against online vendors–the changes to buyer and seller relationships on eBay, for instance, has enabled a couple that make it flat-out idiotic to sell anything valuable there.

I’d be very surprised if any of these people ever got their money back, although with enough pressure the guy’s bank might be persuaded to at least let him perform chargebacks less.

I thought people pay kickstarter, and then kickstarter pays the project? So the only entity losing money here is kickstarter, as that’s the target of the chargeback?

Or does the project owner just get all of the money in a million individual transactions?

edit: Interesting link. Its where the Kotaku piece originally comes from

Payments enter your Amazon Payments account individually (in this it’s more like Paypal than a traditional credit card processor), then can be withdrawn after a holding period. Given that rewards often take some time to ship, it’s likely these KS creators have already withdrawn the problematic payment and deposited it into their personal/business checking accounts. . .

However, as outlined there, you’re responsible for paying chargebacks that do not meet requirements; if the scammer is filing their complaint with their bank “correctly” (e.g., product received not as described/damaged/etc.), then they can force the creator to have to “pay Amazon back” the cost of the chargeback–even if they dispute it, there are certain categories of CBs that are all-but-impossible to win, even with proper documentation.

Source for the opinioneering in this thread: 2 years in the CC processing industry :(