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Is that true? If coinbase detects a chargeback due to fraud from a bitcoin purchase in your account couldn’t they just freeze your account and prevent any outbo

Is that true? If coinbase detects a chargeback due to fraud from a bitcoin purchase in your account couldn’t they just freeze your account and prevent any outbound transfer from happening?

charlesdm 9y ago
Say this account gets hacked. Hacker purchases $1000 worth of Bitcoin or Ethereum and transfers this to a random wallet on the network. Now a chargeback leaves someone paying the bill, because the BTC or ETH can't be recovered.
Zelizz 9y ago
They could, but you could have already transferred the funds to another wallet they don't control.
- dawhizkid 9y ago
  I assume they have a fraud check for outbound transfers to delay or reject but yes for false negatives this is possible.
  - root_axis 9y ago
    There is no such fraud check for outbound transfers. A 3 month delay would be completely impractical anyway.
deleted 9y ago
[deleted]
pjc50 9y ago
Chargebacks may arrive at the merchant up to about 3 months from the transaction.
- tzs 9y ago
  That's too low. The baseline for most credit cards is 120 days for the cardholder to dispute a charge in the US, or 180 days internationally. Some specific dispute categories for some credit cards have a shorter limit, and some effectively have longer limits because the starting point is some date after the transaction. On top of that, there may be consumer protection laws in some areas that affect this. For example, in California it is one year for certain types of dispute [1]. Note that the above is how long for the cardholder to dispute the charge. Add to that however long it takes the card company to process things before the merchant sees the chargeback. I've seen one that arrived at the merchant over a year after the transaction, although I think that is rare. [1] https://oag.ca.gov/consumers/general/credit-cards-dispute-charge https://oag.ca.gov/consumers/general/credit-cards-dispute-ch...

Is that true? If coinbase detects a chargeback due to fraud from a bitcoin purchase in your account couldn’t they just freeze your account and prevent any outbound transfer from happening?

charlesdm 9y ago

Say this account gets hacked. Hacker purchases $1000 worth of Bitcoin or Ethereum and transfers this to a random wallet on the network. Now a chargeback leaves someone paying the bill, because the BTC or ETH can't be recovered.

Zelizz 9y ago

They could, but you could have already transferred the funds to another wallet they don't control.

dawhizkid 9y ago
I assume they have a fraud check for outbound transfers to delay or reject but yes for false negatives this is possible.
- root_axis 9y ago
  There is no such fraud check for outbound transfers. A 3 month delay would be completely impractical anyway.

deleted 9y ago

[deleted]

pjc50 9y ago

Chargebacks may arrive at the merchant up to about 3 months from the transaction.

tzs 9y ago
That's too low. The baseline for most credit cards is 120 days for the cardholder to dispute a charge in the US, or 180 days internationally. Some specific dispute categories for some credit cards have a shorter limit, and some effectively have longer limits because the starting point is some date after the transaction. On top of that, there may be consumer protection laws in some areas that affect this. For example, in California it is one year for certain types of dispute [1]. Note that the above is how long for the cardholder to dispute the charge. Add to that however long it takes the card company to process things before the merchant sees the chargeback. I've seen one that arrived at the merchant over a year after the transaction, although I think that is rare. [1] https://oag.ca.gov/consumers/general/credit-cards-dispute-charge https://oag.ca.gov/consumers/general/credit-cards-dispute-ch...