How Pedicab Drivers Are Abusing Square To Scam People

Posted Jul 23, 2013

Pedicab drivers in New York City have found a way to scam people using the Square mobile payment company, according to The New York Post.  The pedicab drivers have added extra fees through the app, but did not tell passengers.  The passengers did not discover that they were ripped off until looking at their account statement later on.  One of the primary targets are intoxicated people that recently left a bar or club.

The NYC Pedicab Owners Association said that the Square card readers invites fraud and gives honest rickshaw drivers a bad name.  ?Square just lets you charge people whatever you want,? stated the acting president of the NYC Pedicab Owners Association Laramie Flick. ?They are helping these guys tremendously by doing this. It?s super easy to get an account and super hard for people who get cheated to find you again. Why is that??

One pedicab driver charged a Japanese couple $720 for the ride.  That pedicab driver tried to charge them another $616, but the credit card company rejected the second attempt.  The city Department of Consumer Affairs is attempting to have Square subpoenaed to name the driver.  The receipt is labeled as SQ Pedicabs Inc. rather than that individual’s name.  A Square spokesperson, Aaron Zamot, said that the company is aggressively fighting fraud.  Zamot said that victims’ banks can contact Square to get the details on questionable transactions.

?We have and will continue to shut down any accounts that attempt to engage in fraud,? added Zamot.