STORY YOUMISSED
A newly released video provides Chicago residents and local law enforcement with a clear look at a sophisticated mobile payment scam operating in the downtown area.
The footage captures a confrontation between an alert citizen and a group of individuals attempting to exploit pedestrians using digital wallets.
Watch the footage released by CBS News Chicago below:
Scammers approach targets on the street and deliver emotional stories about needing immediate financial assistance for a relative’s funeral.
Once a victim agrees to help, the suspects utilize mobile card readers to process unauthorized transactions that far exceed the agreed-upon donation amount.
The latest attempted incident occurred around noon on Wednesday in the Streeterville neighborhood near the intersection of Ohio Street and St. Clair Street.
An anonymous witness observed a group of four men surrounding a lone woman near the busy downtown intersection.
The witness stated that the men actively pressured the pedestrian to donate to a funeral fund for their cousin using a smartphone payment system.
When the target offered to give the group cash instead of a digital payment, the men refused the physical currency.
The target then asked the group if they had a verified online fundraising profile, such as a GoFundMe page, but the suspects stated they did not have one.
Recognizing the situation as a potential fraud scheme, the witness pulled out her smartphone and began filming the interaction.
The suspects immediately fled the scene as soon as they noticed the witness recording their activities.
According to the witness, the four men ran directly to two waiting vehicles and quickly drove away from the Streeterville intersection.
The witness managed to capture the license plates of the two getaway vehicles, which she identified as a Nissan Altima and a Toyota Camry.
While the incident was unfolding, the witness dialed 911 to report the active fraud attempt to emergency dispatchers.
The witness later submitted the video recordings and vehicle photographs directly to the Chicago Police Department.
Because the witness intervened, the woman targeted in Streeterville did not lose any money during the encounter.
The anonymous witness stated that this specific scheme is particularly damaging because it actively targets individuals who want to help others in need.
This incident matches a growing pattern of mobile payment fraud reported across various Chicago neighborhoods over the last year.
Former Wicker Park resident Heather Radin fell victim to the exact same scheme last year and lost $5,000 from her account.
Radin stated that losing that amount of money represents a major financial crisis for an average working person.
While Radin’s banking institution eventually reimbursed her stolen funds, other Chicago residents have not been as fortunate.
Lakeview resident Paul Mitchell experienced the same scam and lost $5,000, but his credit card company denied his request for a reimbursement.
Better Business Bureau of Chicago President and CEO Steve Bernas explained that fraud victims face an uphill battle when trying to recover funds lost through contactless payment applications.
According to Bernas, financial institutions are not legally required to reimburse users who willingly authorize a transaction on their device.
The Better Business Bureau warns that tapping a phone against a reader grants the recipient immediate, authorized access to the connected bank account.
Chicago financial fraud investigators recommend that residents completely avoid using digital wallets to transact with strangers on public streets.
Local authorities advise pedestrians to direct individuals soliciting money to registered, transparent non-profit organizations or official city shelters.
If a stranger asks you to use your phone for a quick transaction, security experts recommend keeping your device locked and walking away immediately.
Public records indicate that the Chicago Police Department does not currently have an active call for service logged for that specific block on Wednesday afternoon.
Representatives for the Chicago Police Department did not confirm whether detectives have opened a formal investigation into the license plates provided by the witness.
Community groups in the Near North Side area are sharing the witness’s warning to ensure residents remain vigilant during their afternoon commutes.
