Pedicab drivers in New York City are exploiting the Square mobile payment app to overcharge tourists, often without their knowledge until they review their credit card statements. The app allows drivers to add undisclosed fees, claiming transaction fees or taxes, to inflate the charge. This scam particularly targets vulnerable individuals such as late-night revelers. Laramie Flick, acting president of the NYC Pedicab Owners Association, criticized Square for making it too easy for dishonest drivers to commit fraud and difficult for victims to track down the perpetrators. Recently, a pedicab driver charged a Japanese couple $720 and attempted an additional $616 charge, which was blocked by the credit card company. The city’s Department of Consumer Affairs is seeking to subpoena Square for the driver’s details, though Square maintains that victims’ banks can contact them for transaction details but not the fraudsters’ contact information. Square asserts its commitment to collaborating with cardholders, banks, and authorities to address fraud and protect consumers.
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