"Reservation Rewards" Rips People Off With Card Fraud

 
 

  • The Scam
  • Other Sites Discussing the Scam
  • Reportedly Tainted Web-stores

    On May 18th, 2006, I noticed a strange transaction on my credit card statement, for just $11, something I wouldn't normally notice. After some leg work, I discovered this was fraudulent use of my card, and had been happening for months, at $11/month. Looking on-line, I saw that this is a known scam that has been happening with the company Webloyalty.com, Inc. for some time , in conjunction with many host sites (see links provided below).

    So if you see on your credit card or debit card statement: WLI*RESERVATIONREWARDS.CO (with a phone number, 800-732-7031 -- at first it seemed odd that they gave their number so readily - but you'll see that this is how their 'business' survives and thus you should avoid using it), then you have been hit. You could call them to complain and demand a refund -- they'll give it -- far too easily for a legitimate company. Do not give them any more information -- they wanted my credit card # and other info! Insist that their behaviour is illegal and that they should not have any of your information and that you certainly will not provide them with more. Note that they will tell you that they sent you emails, that you agreed to this, etc. Of course none of this is true, so do not wonder if you just missed something and thus hesitate to dispute it. Then call your bank/credit card company as well to complain about Webloyalty.com. However, it may be better *not* to call Webloyalty.com , but rather to call your financial institution and insist that your card has been fraudulently used and that you cannot get a refund from the company. Then *they* will have to spend the time/money pursuing the matter, and in time, will eventually take legal action -- but not if we do that work for them, especially since Webloyalty.com seems to so easily provide refunds. I only realized this after getting my refund, when I then called my Visa card company to alert them -- they did not seem overly concerned since I was so easily offered a refund. I have no doubt the credit card company will do nothing now.

    Webloyalty.com got my credit card number when I ordered tickets on movietickets.com, but other reported 'contaminated' sites include expedia.com, for example. If you read Adam Rosi-Kessel's weblog, you will see that at least some of these vendors are completely oblivious to the problem, which seems to be linked to the card processing company used (e.g. www.virtualcart.com), though obviously a web store should do its due diligence in contracting out such important services, and should examine their sites more carefully. If you ask Webloyalty.com, they will even tell you through which site they obtained your number. You should complain to this host site, as they should be notified and are participating in this sham, either passively, or not ( yahoo!store recommends to webstores to get this Reservation Rewards 'service' to increase traffic on their sites, and to make a buck. I emailed them to complain but never received a response. Likewise, I emailed movietickets.com to complain, and never got a response).

    Sites discussing Webloyalty.com's fraudulent ways:

  • Boston Globe article about class action lawsuit, Sept. 12th, 2006.
  • Top Tech News article about class action lawsuit, Sept. 12th, 2006.
  • Seattle Times article from Sunday, May 21st, 2006.
  • Washington Post article from Sunday, May 7th, 2006.
  • Rip-Off Report (add your own report to the hundreds present-- mine is here).
  • Auctionbytes.com story (July 5, 2006)
  • Adam Rosi-Kessel's Fair and Balanced Weblog (he is collecting emails from people affected by this scam -- see his site for the email address, and a gazillion testimonials or to add your own). Also see this update.
  • ahoyhoy.org (you can add your own story)
  • Conneticut Better Business Bureau
  • Info World article, May 5th, 2006
  • Consumer Web Watch article (September 8, 2005)
  • http://wlireservationrewardssucks.blogspot.com/ (post your own story)
  • Information posted by Joe Kuefler
  • ...
  • Google: fraud OR scam OR illegal "reservation rewards " (4,270 hits on April 7, 2008; 1,490 hits on May 27, 2006; 859 hits on May 22, 2006; 502 hits on May 19th, 2006)

    Web-stores reported to have handed over credit card information to Reservation Rewards:
  • movietickets.com
  • expedia.com
  • SmartBargains
  • BabyUniverse.com
  • Priceline.com
  • various Yahoo!Stores
  • classmates.com
  • ChoiceHotels.com
  • Marketworks
  • Fandango.com
  • Allposters.com
  • ...
  • a list provided by someone else
  • (I don't have *that* much time on my hands to complete this list! see links below for more)


    Lastly, copying Adam Rosi-Kessel "If nothing else, I hope this shows up on a search for this company, the phone number, or Vincent D’Agostino (the President of the company) and Mary O’Reilly (the customer service director). (My apologies to any Vincent D’Agostinos or Mary O’Reillys out there who aren’t related to this scam)." And to add a few more that I found: Richard Fernandes (CEO), Shane Spitzer (Senior VP), Jeffrey Kenall (Senior VP), Gary Cacace (CTO), Martin Isaac (Senior VP), Eli Chalfin (Senior VP), Gina Carey (VP). These names were obtained from the webloyalty.com web site (Google theses names and you'll find it), which also has their email addresses should you care to email them. If their site is down, I have copied their email addresses here , which also has their bios from their web site in case you want to try to disambiguate a perfectly fraud-free name, from the fraudulent one.




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