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How to Respond to Unauthorized Charge and Fraud Claims (Email Template)

· 6 min read

When customers discover unexpected charges and claim fraud, they're panicked and often threatening legal action. This guide shows you how to investigate urgently, reverse charges appropriately, and address security concerns professionally.

Example Customer Complaint​

Subject: FRAUD - Unauthorized charge on my card

URGENT - FRAUD ALERT

I just noticed a charge of $87.50 on my credit card from your company 
dated February 10th. I did NOT make this purchase and I have NEVER 
ordered from your company before.

This is fraud. I'm filing a dispute with my credit card company and 
reporting this to the FTC. I want this charge reversed immediately and 
an explanation of how you got my card information.

I'm also concerned my card details have been compromised. What security 
breach happened on your end?

Very concerned,
Lisa Chen

Casee.io Analysis: Automatic Case Classification​

When you paste Lisa's message into Casee.io, the AI instantly analyzes and categorizes the case:

📋 Case Summary:

  • Regarding: Unauthorized charge and potential fraud
  • Priority: High
  • Categories: Fraud, Unauthorized Charge, Billing Dispute

Key Issues Identified​

Casee.io breaks down the complaint into 2 specific issues that need addressing:

Issue 1: Unauthorized Charge ($87.50)​

Customer's concern:

"I just noticed a charge of $87.50 on my credit card from your company dated February 10th. I did NOT make this purchase and I have NEVER ordered from your company before."

Suggested response:

We are very sorry to hear about the unauthorized charge of $87.50 on your credit card dated February 10th. We understand this is concerning, especially since you have not ordered from us before. We will immediately investigate this transaction to determine its origin and ensure it is reversed if it was indeed made in error or fraudulently. We are also looking into how your card information may have been accessed.

Issue 2: Security Breach Concern​

Customer's concern:

"I'm also concerned my card details have been compromised. What security breach happened on your end?"

Suggested response:

We understand your concern about your card details being compromised and the potential for a security breach. Please rest assured that we take data security very seriously. We are launching an immediate internal investigation into this incident, including reviewing our security protocols, to understand how this might have happened and to prevent future occurrences. We will provide an update on our findings as soon as possible.

Complete Email Response​

Casee.io also generates opening and closing paragraphs to frame your response:

Opening (AI-Generated):​

Dear Lisa Chen,

Thank you for reaching out with your concerns. We understand that 
discovering an unauthorized charge on your credit card can be very 
distressing, and we sincerely apologize for any worry or inconvenience 
this situation has caused you. We are taking your report very seriously 
and will investigate this matter thoroughly.

Body (Combine Issue Responses):​

You can now copy and paste each suggested response, editing as needed to add specific investigation findings or security assurances.

Closing (AI-Generated):​

We appreciate your patience and understanding as we work to resolve 
this for you. Please be assured that we are committed to protecting our 
customers' information and will take all necessary steps to address 
your concerns.

Sincerely,
[Your Company Name]

Why This Approach Works​

✅ Takes fraud claim seriously - No dismissive language

✅ Commits to immediate investigation - Shows urgency matching theirs

✅ Addresses security concerns directly - Doesn't dodge the breach question

✅ Professional tone despite accusations - Maintains composure

✅ Promises resolution and follow-up - Sets clear expectations

Common Unauthorized Charge Scenarios​

Scenario A: Legitimate charge customer forgot​

Add: "I've located a transaction from February 10th for [specific product/service]. Does this match anything you may have purchased? Sometimes company names appear differently on statements. Here's the order confirmation email we sent to [email]."

Scenario B: Family member/employee made purchase​

Add: "Our records show this charge was made using card ending in [last 4 digits] with billing address [address]. Does this match your information? Sometimes family members or authorized users make purchases."

Scenario C: Subscription auto-renewal​

Add: "This charge appears to be an auto-renewal of a subscription started on [date]. I've canceled the subscription and processed a full refund of $87.50. You won't be charged again."

Scenario D: Actual fraud/stolen card​

Add: "I cannot find any order associated with this charge in our system, which suggests fraudulent activity. I've immediately refunded $87.50 and flagged this for our fraud prevention team. Please also contact your bank to report the card as compromised."

Scenario E: Data breach on your end​

Add: "I must inform you that we recently discovered a security incident affecting a limited number of customer records. We've notified affected customers and are offering complimentary credit monitoring. Your refund is processing immediately."

How to Use Casee.io for Fraud Claims​

  1. Paste the customer's message into Casee.io
  2. Review the analysis - Check charge amount, date, customer's claims
  3. Copy suggested responses - Use the itemized responses for each concern
  4. Add investigation results - What you found, refund status, next steps
  5. Follow up internally - Investigate transaction, review security logs

Critical Investigation Steps​

URGENT - Complete within 1 hour:

  1. Search for transaction - Card last 4, amount, date, email, name
  2. Check fraud indicators - IP address, device fingerprint, velocity checks
  3. Review customer account - Any existing profile? Previous orders?
  4. Check for data breach - Any recent security incidents?
  5. Process refund if fraud confirmed - Don't wait for investigation completion
  6. Notify fraud team - Pattern of fraudulent charges?

Important:

  • Don't admit fault without investigation - "We're investigating" not "We were breached"
  • Process refund quickly - Reduces chargeback likelihood
  • Document everything - Customer complaint, investigation findings, refund proof
  • Follow PCI-DSS protocols - If breach suspected, follow incident response plan
  • Notify authorities if required - Depending on jurisdiction and breach scope
  • Offer credit monitoring if breach - Proactive protection for affected customers

Prevent Future Fraud Claims​

Implement these security measures:

  • 3D Secure/AVS verification - Additional authentication for card-not-present transactions
  • Velocity checks - Flag multiple charges from same card in short time
  • IP geolocation matching - Flag when billing address and IP don't align
  • Email confirmations - Send immediately after every charge
  • Recurring billing notices - Email 3 days before auto-renewals
  • Clear billing descriptor - Use recognizable company name on statements

Try It Yourself​

Want to handle fraud claims faster while protecting your business and customers? Try Casee.io free →

Paste your customer message and get instant analysis with urgency-aware, security-focused response suggestions.