Chargeback blockers are underhanded tactics used by scam brokers and fraudulent trading platforms to prevent clients from successfully reversing payments through their bank or credit card provider. When traders realise they’ve been scammed and try to initiate a chargeback to recover their funds, these brokers employ delays, fake receipts, forged consent, and intimidation to stop the process before it succeeds.

In this article, we uncover how chargeback blockers work, how to recognise them, and how to fight back if a broker tries to trap your funds behind fake legitimacy.

What Are Chargeback Blockers?

A chargeback is a reversal of funds processed by a card provider (e.g. Visa, Mastercard) when a customer disputes an unauthorised or fraudulent transaction. Chargeback blockers are tactics used by scam brokers to disqualify or sabotage your chargeback claim, such as:

• Falsely claiming the transaction was authorised
• Presenting forged or misleading documents
• Delaying withdrawal requests to exhaust dispute windows
• Pressuring you to cancel the dispute
• Creating fake refund receipts or showing phantom payment attempts

How the Scam Works

1. You Request a Withdrawal or Refund

Once you realise you’ve been misled—through fake profits, blocked withdrawals, or a scam trading platform—you try to get your money back through your bank.

2. Broker Intervenes

The broker:

• Claims the chargeback is unjustified
• Produces “signed” documents or invoices
• Shows you “refund in progress” messages
• Claims the chargeback will block or forfeit your funds

3. Delay and Distract

They stall for time until:

• The chargeback window (typically 60–120 days) closes
• You cancel the dispute thinking a refund is imminent
• You accept a partial refund that voids further claims

4. Fake Legal Threats

Some brokers go further by:

• Threatening legal action
• Claiming the chargeback is a violation of their terms
• Insisting you signed a no-refund policy

None of this is enforceable—but it’s designed to intimidate.

Common Chargeback Blocking Tactics

• Fake terms and conditions: Sent post-deposit or altered retroactively
• Unverified “consent” forms: Screenshots or PDFs with your name and forged signature
• Fake chat transcripts: Fabricated messages to “prove” you agreed
• Delaying refunds with vague “compliance” processes
• Sending partial amounts that make banks view the issue as resolved
• Using unregulated offshore entities that complicate the dispute

Red Flags You’re Facing a Chargeback Blocker

• Broker demands you withdraw the chargeback in exchange for a refund
• They offer a refund only via cryptocurrency or third-party wallets
• You are pressured to sign a “settlement agreement”
• They claim a chargeback will lock or suspend your account
• You are told that chargebacks are illegal or “bad for your credit”
• You receive fake receipts that don’t match your card statement

Real Consequences for Victims

• Lost opportunity for recovery if the chargeback period expires
• Financial loss reinforced by false hope or delays
• Emotional stress and manipulation during the dispute
• Compromised data or identity theft if more info is provided

How to Protect Yourself

1. File the Chargeback Immediately

Contact your bank or card provider as soon as you suspect fraud. Don’t wait for the broker’s excuses or refund promises.

2. Provide Strong Evidence

Include:

• Screenshots of chats and emails
• Platform statements or trade history
• Proof of misleading claims or withdrawal denials
• Broker website screenshots showing false regulation or terms

3. Refuse All Broker Settlement Offers

If they ask you to drop the chargeback—don’t. This is a trap.

4. Contact the Regulator

If the broker claims FCA or ASIC regulation, report them directly. If they are unregulated, this will also be confirmed.

5. Use the Bank’s Language

Frame your case as:

• Misrepresentation of service
• Non-delivery of agreed terms
• Deceptive business practice

Avoid vague terms like “scam”—use verifiable, transactional facts.

Learn How to Fight Back Intelligently

Understanding how scammers defend against chargebacks is critical. Traders MBA offers expert-led trading courses that include how to evaluate brokers, handle disputes, and protect your capital through smart legal and technical strategies.

Conclusion

Chargeback blockers are psychological and procedural weapons used to silence victims and keep stolen funds locked away. But a well-prepared trader with documented evidence and fast action can still win. Don’t trust the scammer’s refund promises—trust the system designed to protect you. Because in trading, the strongest move isn’t trust—it’s proof.