One of my colleagues got scammed for $14,000 by one of the Apple Gift Card scams.
He paid $4,000 in Cash for Gift Cards and bought the other $10,000 worth by maxing out a credit card.
He's gone ahead and registered a complaint with NYPD and is considering opening a dispute with the Credit Card company. My question is, does he have any grounds for opening up a dispute and what are the chances of it being resolved in his favor.
More details for context and the story as narrated by him on the lunch table today. He got a call on Friday in the afternoon from
NYPDs Official Number (This was flagged as such by Truecaller) telling him that his SSN would be blocked as they suspected him or his acquaintances to be involved in human trafficking in Texas and that he would not be able to access any funds. They suggested to him to withdraw cash and to convert it to Apple Gift-Cards. He went to an Apple store in NYC (Grand Central) after withdrawing the max allowance from his bank ($4000) and bought Gift-Cards, when asked by the cashier at the store as to why he was buying gift cards of such a high denomination. He told him that it was for personal use.
He then takes the subway to WTC (Apple Store in the Oculus) and maxes out one of his credit cards, same story with the cashier. After this he gets another call from the scammers who ask him for the gift card numbers on the pretext of keeping a record of the serial numbers to help him convert them back to cash later. They advice him to use the other credit cards that he has and do the same thing. At this point he tries again at the WTC store and his Chase card gets declined for suspected fraudulent activity. The other cashier at the Apple Store advices him that this is a very common scam and alarm bells finally ring for him and to his horror the balance of all the gift cards had been drained.
He then goes to NYPD and registers a formal complaint, calls Apple who tell him that the gift cards have been used and that they can share more details with the police if they contact them officially. He also called his credit card company to ask them why they didn't decline the $10,000 transaction and how he can dispute the transaction. They advice him to contact them again in a couple of days after the transaction settles and advice him that it will take a couple of months to complete the investigation. In the meantime he doesn't need to pay the $10,000.
The specific question here is that since he went and used the card in person at the store, then lied to the associate who asked him why he was buying gift cards of such a high denomination on the instructions of the scammers; does he really have a case for disputing the transaction? Is this not similar to being responsible for transactions made by another authorized user?
I understand if his card had been skimmed and then used, that would be a clear cut case of fraud and he'd have no liability.