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Origin based in a true scam?
I remember this scam being featured on That's Life! in the late-70s/early-80s. It was a British TV show that dealt a lot with consumer rip-offs and I think there was an actual investigation into the company involved, so it appeared to be genuine at that point. Psychonaut3000 02:20, 14 July 2006 (UTC)
This is true but I can't say that because it would be Original research
This is a variation of a true story. I worked for a company who processed financial transactions on behalf of Internet companies in the early 2000's. We received compliants about a company doing the following: Step 1: Offer the customer a free trial to a pornographic website. Use their credit card to verify their identity. Step 2: If the customer doesn't cancel membership within a set time period, bill them an annual membership fee. Step 3: if the customer complains, rather than credit the funds back to their credit cards, cut them a cheque with the above embarrassing name on it. Fortunately, the scheme did not work very well, as customers quickly figured out that they could simply call their credit card companies and reverse the charge under the pretense that their card was stolen, since at the time there was no way for the internet merchant to verify that the card was not stolen. 02:20, 17 May 2012 (UTC) — Preceding unsigned comment added by 126.96.36.199 (talk)