Bitcoin transactions and Theft

[Ooiyyy]

What legal actions can someone take if their credit card were to be stolen and used to buy Bitcoins?

Would the wallet account still be considered anonymous or could the IP be traced during the purchase?
Also would it matter if the wallet is a physical piece of hardware or if it is hosted online on places such as 'Coinbase' or other sites?


I know this sounds like a weird question but it is 100% theoretical. I do not plan to steal credit cards nor have I gotten my card stolen.

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[icet208]

You would probably be refunded by the bank and maybe the bank will investigate furder if they want. O you can complain to police aswel

[LukaHR]

I think it is as same as a normal card, because to get any card you have to confirm your identity.

[franky1]

[This post needs to be moved to the 'Legal' section, sorry for the confusion]

What legal actions can someone take if their credit card were to be stolen and used to buy Bitcoins?

Would the wallet account still be considered anonymous or could the IP be traced during the purchase?
Also would it matter if the wallet is a physical piece of hardware or if it is hosted online on places such as 'Coinbase' or other sites?


I know this sounds like a weird question but it is 100% theoretical. I do not plan to steal credit cards nor have I gotten my card stolen.

if the card is stolen then your legal rights are the same no matter what it was used to purchase. whether its KFC, whether its a prostitute, whether its bitcoins or whether its a car.. its all the same. contact your bank. inform them of the theft and request a replacement card.
leave it up to your bank to sort out the rest.

but this is also why most non reversible valuable items do not like accepting credit cards.. because of the whole charge back scammers who do exactly that. buy bitcoins and then tell their bank their card was stolen.

the banks are getting smarter now. and if the seller has done enough KYC. the card payment will not be treated as stolen and the scammer would actually be prosecuted for fraud for making a false claim

you will not see very many people do OTC trades for credit cards or paypal.. for good reasons in most cases

[AgentofCoin]

[This post needs to be moved to the 'Legal' section, sorry for the confusion]

What legal actions can someone take if their credit card were to be stolen and used to buy Bitcoins?

Would the wallet account still be considered anonymous or could the IP be traced during the purchase?
Also would it matter if the wallet is a physical piece of hardware or if it is hosted online on places such as 'Coinbase' or other sites?

I know this sounds like a weird question but it is 100% theoretical. I do not plan to steal credit cards nor have I gotten my card stolen.

1. Majority BTC exchanges do not accept CCs. They want all your identification as well as bank account info,
and after you are verified and approved, may purchase BTC with your bank account.

2. The few BTC exchanges that allow for CC purchases have a daily/monthly limit on how much you can buy.
These limits are usually around $5 to $50 a day, I believe. I have never used, so I don't know for fact.
But I do know there are limits related with CC purchases.


Ultimately, if your CC was stolen and the thief bought BTC with it, the CC companies would follow
the same procedure they follow with normal CC theft with purchases. If they choose to investigate further
such as contact the BTC exchange and request that info, the exchange will likely comply since exchanges
that would accept a specific CC would be following laws and rules in their jurisdiction that apply to fraud.

It seems to me, the CC company would reimburse you and attempt to be recouped by the exchange.
Because of this reasoning, it would explain why BTC exchanges have limits on CC purchases.

[Dank14]

If a credit card is stolen, it's best to report to the credit card company to block all transactions. This is because bitcoin transactions are irreversible, the credit card company cannot get your money back once bitcoins has been purchased.

Now about IP tracking, the fraudster might have used someone else's PC.

[AgentofCoin]

...the credit card company cannot get your money back once bitcoins has been purchased.
...

Do you even understand how CC's work? I guess not.
If you were participating in a signature campaign, your comment would make more sense.

[BellaBitBit]

[This post needs to be moved to the 'Legal' section, sorry for the confusion]

What legal actions can someone take if their credit card were to be stolen and used to buy Bitcoins?

Would the wallet account still be considered anonymous or could the IP be traced during the purchase?
Also would it matter if the wallet is a physical piece of hardware or if it is hosted online on places such as 'Coinbase' or other sites?

I know this sounds like a weird question but it is 100% theoretical. I do not plan to steal credit cards nor have I gotten my card stolen.

Ultimately, if your CC was stolen and the thief bought BTC with it, the CC companies would follow
the same procedure they follow with normal CC theft with purchases. If they choose to investigate further
such as contact the BTC exchange and request that info, the exchange will likely comply since exchanges
that would accept a specific CC would be following laws and rules in their jurisdiction that apply to fraud.

It seems to me, the CC company would reimburse you and attempt to be recouped by the exchange.
Because of this reasoning, it would explain why BTC exchanges have limits on CC purchases.

I agree that the CC company would  follow the same procedure they follow with all reports of unauthorized use.  As you said, it makes sense that exchanges have limits on CCs.

[groll]

I think it is the same thing when someone uses other credit card to purchase thing.  You will go to the bank that issued your credit card and tell them about what happened.  Then they are the one who will investigate the whole thing and just wait for their feedback. 

[Cresciuanto]

if some one stolen your card and withdraw the money then you have to complaint in the police. there is concern that what the thief with it. either he buy bitocin wil it or something else.

[abugseuf]

it depend on your transaction company. that what source are you going to use for our transaction.  i think most of the cradit card companies are reliable and there is no risk while using them. because they are mostly govt registered companies.

[Bitcotalk]

You can complain to your bank, hey will lock your card and if they have bought bitcoins with that , they would have used an exchange for that and as exchanges have links with banks so banks will definitely contact them to lock that account, further more I do not know but it is the way my country bank will do.

[Gahs]

If the person who stole the card is found, he will be charged with theft and prosecuted. Though he might not be able to refund the money back.

[zodin]

i have no personal experience about this but i think i can conclude that such kind of elements must be present in the society as they are present in the real life . so fortunately i never face such kind of situation up to now.

[abugseuf]

You would probably be refunded by the bank and maybe the bank will investigate furder if they want. O you can complain to police aswel

yet but in case of fiat currency only, and you can not complaint against some one who stole your bitcoin and the police also not going to accept your complaint about stealing your bitcoin because bitcoin is not a legal currency and the government departments are not going to take any action for illegal currency.

[bestluck]

The person will use an exchange to buy bitcoins with your credit card so if you provide your bank or credit card issuing companies statement for your ownership then it may happen that the exchange will reveal the info of that person if it had his documents for verification.

[eshaal.khan]

Well if some one stolen your credit card than on that spot you have to inform your credit card bank or company that deactivate that card so i think this is the best way .but if you don't take action on the spot and some one purchase bitcoins from that card then its depend upon on that country  if bitcoin is illegal then they don't have right to take action.

[neverseven]

What legal actions can someone take if their credit card were to be stolen and used to buy Bitcoins?

Would the wallet account still be considered anonymous or could the IP be traced during the purchase?
Also would it matter if the wallet is a physical piece of hardware or if it is hosted online on places such as 'Coinbase' or other sites?


I know this sounds like a weird question but it is 100% theoretical. I do not plan to steal credit cards nor have I gotten my card stolen.

If the hacker is good enough, there will be no way to trace him. Hope this will never happen to me, I am always very careful when hanging around with my credit cards.

[philiveyjr]

First of all exchange sites usually won't just allow you to buy bitcoins with a credit card without proving your identity.

Secondly if the person fails to report his card stolen and some how you are able to prove your identity with the card, then yes bitcoins can be bought and if they find out a legal action can be taken.

But most of the people who do this don't give up their IP's so easily.