Chicago con artists claim to need donations for kids' funerals, drain bank accounts with tap-to pay

It typically begins in a shopping center car park.

You believe you're making a contribution of $10 or $20 to help raise funds for a child's funeral expenses.

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However, instead, you end up surrendering your debit or bank account information and find yourself out tens of thousands of dollars.

Two women were pressured and then tricked into "tap-to-pay" donation schemes.

"I never, ever agreed to give $3,000," said Estelle Fisher.

"And within that brief moment, they were able to get me on both sides of me, and then kind of wedged between where my car door opened," said Kelly.

The con artists told these women that they were raising money for children's funerals.

"I paused, and then they spoke to me about a child who was shot, and they were attempting to gather funds for the burial," Estelle explained.

Estelle Fisher and Kelly, who did not want to share her last name, both filed police reports after they say were recently victimized by this new scam.

"They mentioned, ‘We’re collecting funds for our younger sibling who passed away due to gun violence.’ They also displayed a poster board featuring photographs,” Kelly stated.

Kelly does not want to use her last name out of fear of the criminals who scammed her. She says she was intimidated and then fooled into using her checking card, in her phone's wallet, on a tap-to-pay device.

All of it happened in front of a drug store in Lincoln Park. She thought she was donating $25 dollars for the funeral. Instead, her checking card was charged $2,500.

"They emphasized that it needed to be tap-to-pay, and within a few seconds, they tapped my phone and withdrew the $2,500," Kelly stated.

She mentions they fled, and when she checked her bank app, she noticed a larger transaction. Her bank, Wells Fargo, rejected her allegations of fraud.

"They mentioned that my phone wasn’t taken, so I gave permission for the charge," Kelly stated.

As the fraudsters employed a PayPal business account for accepting payments, she contacted them as well. She mentions that PayPal rejected her claim.

"I completely disagree with this. If I entered a shop and was charged more than what seemed reasonable for such items, I would have grounds to pursue reimbursement," Kelly stated.

Wells Fargo declined comment, but after the I-Team reached out to PayPal, the company refunded Kelly.

"The moment you guys got involved, I feel like they called me shortly after," Kelly said. "I don't think it would have been done without that, and I mean, I was just honestly shocked at the call and very relieved that this is just kind of come to an end."

"The donation scam poses a current threat due to its rise, not just in Chicago and northern Illinois, but throughout the entire United States as well," stated Steve Bernas, president of the Chicago-area Better Business Bureau.

Bernas states that fraudsters often aim at women, and banks might be reluctant to reimburse customers because the victims keep using their cards.

"As the wheel squeaks more, it receives more oil; similarly, when consumers become more vocal or actively engage, they tend to receive more attention. However, in reality, this often boils down to distinguishing between credit card fraud and disputes over credit cards. Many times, these credit card companies argue that you provided your phone number or credit card details voluntarily, which disqualifies it as fraud,” explained Bernas.

Estelle fell prey to a donation scam orchestrated by a grocery store located in the Ravenswood area. According to her account, fraudsters presented convincing-looking official donation documents, which led her to agree to contribute $10.

"I handed over my card for him to tap. While he was processing the payment, his friend started chatting with me. After completing the transaction, we exchanged farewells and I returned to my workplace. Upon arriving, I received a notification from my bank warning about potential fraud—the amount involved was $3,000. I couldn’t believe it," Estelle explained.

She mentions that her bank, Bank of America, initially rejected her fraud claim for charge reversal, but eventually approved it after she resubmitted it as a "billing dispute."

The bank chose not to comment on Estelle's situation but stated that they aim to caution customers about handing their credit cards solely to reliable retailers.

"It’s around $3,000. As a teacher, this feels like quite a substantial sum to me. To put it into perspective, it’s definitely not an insignificant amount,” stated Estelle.

The I-Team found that both women's transactions came back to construction businesses with no apparent active business operations or offices.

"To, like, make someone feel so, like, helpless in that situation, like a vulnerable situation. And then the fact that they can get away with stealing this money, and it continues on and on. I just hope that, you know, there's a stop to it," Kelly said.

"Don't make the same mistake as me by trusting others blindly and neglecting to check your phone or the total sum before using your card," Estelle advised.

None of the ladies received receipts. It's essential to request a receipt right after contributing to anyone. Also, make sure to do your research prior to making donations.

A red flag indicating it might be a scam is when the individuals requesting funds do not accept cash payments.