Telecom “Rewards” Scam Charged to Your Credit Card (Philippines): A Complete Legal Guide

This guide explains your rights and concrete steps to dispute fraudulent “telecom rewards” charges on your Philippine credit card and to report the scam. It reflects Philippine laws and standard bank/card-network processes. It is general information, not legal advice.

What this scam usually looks like

Social engineering call/text/chat posing as your telco (e.g., “You’ve earned reward points/discounts; we’ll process it now.”).
The scammer asks for your OTP, card details, or convinces you to click a phishing link.
Moments or days later, a credit card charge appears—sometimes to a telecom/tech merchant, e-wallet top-up, gift cards, or a vague descriptor that references “rewards/points.”

Key red flags:

Anyone asking for an OTP or CVV.
Links directing to non-official pages.
Pressure to act “now” or threats that points will expire.

Your legal footing (Philippine context)

You can rely on the following frameworks:

Access Devices Regulation Act (R.A. 8484)
- Protects consumers against unauthorized use of credit cards (an “access device”).
- Criminalizes obtaining and using access devices through fraud and imposes liability on perpetrators.
- Supports your position that an unauthorized charge must not be borne by you once properly disputed.
Financial Consumer Protection Act (R.A. 11765)
- Establishes fair treatment and effective recourse standards for banks/issuers, supervised by the Bangko Sentral ng Pilipinas (BSP).
- Banks must have clear complaint handling, disclose processes/timelines, and act on disputes.
Consumer Act of the Philippines (R.A. 7394)
- Prohibits deceptive sales acts. The Department of Trade and Industry (DTI) has jurisdiction over deceptive practices by merchants operating in the Philippines.
Cybercrime Prevention Act (R.A. 10175)
- Penalizes computer-related fraud and offenses committed through information systems—relevant to phishing and OTP-based takeovers.
Data Privacy Act (R.A. 10173)
- If your personal data was mishandled or breached (e.g., by a fake site or a negligent handler), you may report to the National Privacy Commission (NPC).
Revised Penal Code—Estafa (Art. 315)
- May apply in fraud/false pretenses cases, especially if the scammer is identified.

Bottom line: With timely notice and a proper dispute, cardholders are generally not liable for unauthorized transactions. Your issuer must investigate and process a chargeback where applicable.

Immediate actions (first 24–48 hours)

Secure your accounts
- Call your card issuer via the hotline at the back of your card.
- Report the transaction as unauthorized, request temporary block and reissue of the card.
- Change your online banking and email passwords; enable/refresh 2-factor authentication.
Preserve evidence
- Screenshot transaction alerts, call logs, SMS/Viber/WhatsApp messages, emails, phishing pages, OTP requests, and your bank app entries.
- Note dates/times, phone numbers, URLs, amounts, and any reference IDs.
Do not contact scammers again.
- Further engagement can compromise more data and muddle the record.

Disputing the credit card charge

A. Start the bank dispute/chargeback

Notify your issuer immediately. Many issuers set a deadline (commonly 30–60 days from statement/transaction date—check your card agreement).
Ask for the bank’s Dispute Form (or “Chargeback Form”) and Affidavit of Fraud/Unauthorized Use.
Provide:
- Government ID;
- Your detailed sworn statement (sample below);
- Proof you did not authorize or benefit from the charge (e.g., you were elsewhere, no delivered goods, or OTP manipulation);
- Screenshots and logs;
- Police blotter/NBI Acknowledgement (if already filed; you can supplement later).

What to expect:

The issuer typically provisions a temporary credit or flags the charge pending investigation.
They will send a retrieval request to the merchant’s bank. If the merchant cannot prove your authorization (e.g., valid 3-D Secure authentication, signed charge slip, delivery acknowledgment to you), the issuer can pursue chargeback under card-network rules.

B. If the bank resists or delays

Escalate to the issuer’s Complaints Handling Office (cite R.A. 11765 standards).
If unresolved, you can file a complaint with the BSP Consumer Assistance Mechanism (for banks/credit card issuers).
Keep a timeline of calls, ticket numbers, and names of agents.

Parallel reporting (helps both prevention and your case)

Law enforcement
- PNP Anti-Cybercrime Group (PNP-ACG) or NBI Cybercrime Division.
- File a blotter/complaint attaching your evidence. This creates an official paper trail and may aid in tracing SIMs, numbers, or accounts.
Regulators/Agencies
- BSP (for issuer conduct, dispute handling, abusive collection threats for disputed amounts).
- DTI (if a domestic merchant is involved or misrepresented a “rewards” promo).
- NPC (if your personal data was unlawfully processed or breached).
- NTC (report spam/scam numbers; assists with telco coordination).
Your telecom provider
- Report the impersonation and any spoofed sender IDs or short codes to help them block campaigns.

These reports do not replace the bank dispute—they support it.

Evidence that often wins disputes

No 3-D Secure (OTP) you actually entered; or OTP obtained through social engineering (still unauthorized).
Geolocation/device mismatches (transaction originated from a new device/location you do not use).
No delivery/usage proof tied to you (no signed receipt, no KYC match, no IP/device match).
Merchant descriptor anomalies (generic or unrelated to any legitimate purchase).
Prompt reporting and consistent narrative.

Common pushbacks—and how to respond

“You gave the OTP, so it’s your fault.”
- OTP given under deception is still unauthorized, a form of social engineering fraud. Cite R.A. 8484 (fraudulent acquisition/use of access devices) and R.A. 11765 (fair treatment and effective recourse). You acted promptly and did not intend/benefit.
“It was e-commerce with 3-D Secure, so it’s valid.”
- 3-D Secure does not cure social engineering–induced authorization. Ask the issuer to produce full authentication logs, device fingerprint, IP, and delivery proof. If they rely on merchant evidence, you are entitled to review the basis of denial.
“Pay first while we investigate.”
- For disputed/unauthorized charges under investigation, request that the amount be excluded from finance charge computation and not sent to collections pending outcome, consistent with fair treatment rules.

Step-by-step: What to file and where

1) Bank/Issuer (Dispute Desk)

Dispute/Chargeback Form
Sworn Statement (narrative of the scam)
Photo ID
Evidence pack (screenshots, call/SMS logs, URL, timestamps)
Police blotter/NBI acknowledgment (if available; can follow)

2) PNP-ACG or NBI Cybercrime

Complaint/affidavit with evidence
IDs and proof of ownership of the card/number/email
Ask for case reference number

3) BSP Consumer Protection (if needed)

Your complaint letter, bank’s responses, proof of filing and dates, and unresolved issues (e.g., denial without basis, excessive delay, unfair treatment)

4) DTI / NPC / NTC / Telco

Short complaint or report with key attachments; focus on deceptive promo claims, data misuse, or spam/scam numbers

Timelines & expectations

File the bank dispute immediately. (Don’t wait for the statement cut-off.)
Investigations can take weeks to a few months depending on merchant response cycles.
Keep paying undisputed amounts on your card to avoid interest on legitimate transactions.

Templates you can copy-paste

A. Bank Dispute Letter (cover email/letter)

Subject: Dispute of Unauthorized Credit Card Transaction – [Card Last 4 Digits]

Dear [Issuer Disputes Team],

I am disputing the following unauthorized transaction(s) on my credit card ending [XXXX]:

• Merchant/Descriptor: [e.g., “TELCO REWARDS/ONLINE”]
• Amount: [PHP X,XXX.XX]
• Date/Time (PH Time): [DD Month YYYY, HH:MM]
• Reference No.: [if any]

I did not authorize or receive any goods/services from this transaction. I believe my card credentials/OTP were compromised through a telecom “rewards” scam. I discovered the charge on [date] and reported it via hotline case no. [ticket].

Attached are my sworn statement, valid ID, and supporting screenshots/logs. Please process this as an unauthorized transaction under applicable laws and card-network rules and advise me of the retrieval/chargeback status. Kindly exclude the disputed amount from finance charge computation and suspend collections activity while the investigation is ongoing.

Sincerely,
[Full Name]
[Mobile/Email]
[Address]

B. Sworn Statement (Affidavit of Unauthorized Use/Fraud)

REPUBLIC OF THE PHILIPPINES )
CITY/MUNICIPALITY OF _______ ) S.S.

AFFIDAVIT

I, [Full Name], of legal age, Filipino, with address at [address], after having been duly sworn, depose and state:

1. I am the lawful cardholder of credit card no. [XXXX-XXXX-XXXX-XXXX] issued by [Issuer].
2. On [date/time], I received a [call/SMS/chat] from [number/sender], claiming to be from [Telco], offering “rewards/points.”
3. The person induced me to [describe: share OTP/click link/provide details] under false pretenses. I believed it was legitimate.
4. Subsequently, an unauthorized transaction was posted on my credit card with the following details:
   - Merchant/Descriptor: [ ]
   - Amount: PHP [ ]
   - Date/Time: [ ]
   - Reference: [ ]
5. I did not authorize the transaction, did not receive any goods/services, and did not benefit from it.
6. I reported the incident to [Issuer] on [date], case no. [ ], and requested card blocking/replacement.
7. I am filing this affidavit to support the dispute/chargeback and for law-enforcement/regulatory action.

IN WITNESS WHEREOF, I have hereunto set my hand this [date] at [city], Philippines.

[Affiant’s Signature]
[Printed Name]
SUBSCRIBED AND SWORN to before me this [date], affiant exhibiting [ID type/number].
[Notary Public details]

C. Police/NBI Complaint Summary (short form)

Incident Type: Online Fraud / Social Engineering (Telecom “Rewards” Scam)
Date/Time Discovered: [ ]
Narrative: [3–5 sentence summary of how contact occurred and what followed]
Loss/Exposure: [Amount charged], [Data disclosed if any]
Attachments: Screenshots, call/SMS logs, bank dispute, IDs
Requested Action: Documentation for bank dispute; investigation and coordination with telecom/NTC.

Practical tips to strengthen your case

Write a clean timeline (discovery → report to bank → filed affidavit → law-enforcement report).
Disable/limit supplementary cards until the new card is activated.
If a courier delivered any item you didn’t buy, refuse delivery; if received, do not use—return and get a receipt.
Keep communications in writing (email confirmations).
Record reference numbers for every call.
If you inadvertently shared an OTP, acknowledge it with context (deception) in your affidavit—credibility matters.

If the scam used your telco account or “direct carrier billing”

Sometimes the fraud routes purchases through carrier billing tied to your mobile number and then to your card/e-wallet.

Dispute with the card issuer (still unauthorized).
Also open a ticket with the telco to reverse the carrier-billed content and to disable carrier billing on your line.
Ask the telco for IP/device logs and subscription records to support the bank retrieval request.

Collections calls or harassment on a disputed amount

Under R.A. 11765 (and BSP consumer protection standards), collectors must not harass or misrepresent the status of a properly disputed charge.
Inform them in writing that the amount is under dispute with case number and date; demand that collection activity be suspended pending resolution.

When to consult a lawyer

The issuer denies your dispute without adequate proof, or delays unreasonably.
You suffered significant monetary loss or identity theft beyond one transaction.
You intend to pursue civil damages against identified perpetrators or a negligent merchant/service provider.

Quick checklists

Bank Dispute Checklist

Hotline report; get case no.
Card blocked and replaced
Dispute/chargeback form filed
Sworn statement + ID attached
Evidence pack sent (screens, logs)
Request exclusion from finance charges/collections
Calendar reminder for follow-up dates

Reporting Checklist

PNP-ACG/NBI complaint and reference no.
Report to telco (impersonation/number)
BSP escalation (if bank handling is deficient)
DTI/NPC/NTC reports (as applicable)

Prevention Checklist

Never share OTP/CVV; staff will never ask
Verify promos on official sites/apps
Enable 2FA; use a separate email for banking
Lock SIM with PIN; disable carrier billing if unused
Monitor statements and enable real-time spend alerts

Frequently asked questions

Q: I accidentally gave my OTP. Am I automatically liable? A: Not necessarily. If it was obtained through fraud or deception, it remains unauthorized. Your prompt report and evidence are critical.

Q: Will my credit score be hurt while it’s under dispute? A: Ask your issuer to flag the account as disputed and to withhold adverse reporting on the contested amount pending resolution. Pay all undisputed charges.

Q: Can I get the scammer’s identity from the bank/telco? A: Law enforcement (PNP/NBI) can request records. Banks/telcos typically release account or log details only to authorities or under lawful process.

Final word

Act fast, document everything, and insist—politely but firmly—on your rights under R.A. 8484 and R.A. 11765. A clean paper trail and a timely, well-supported dispute are the biggest factors in getting fraudulent “telecom rewards” charges reversed and stopping the scam at its source.