What is Subscription Fraud?
Definition
Deceptive practices involving subscriptions, including unauthorized charges, fake free trials, and stolen payment credentials used for sign-ups.
Understanding Subscription Fraud
Subscription fraud takes many forms: services that sign up users without consent, fake free trials that immediately charge, difficulty canceling (which may constitute fraud in some jurisdictions), and criminals using stolen credit cards to create subscriptions. To protect yourself: use virtual credit cards for trials, monitor bank statements regularly, set up transaction alerts, read terms carefully before entering payment details, and report unauthorized charges immediately. Subscription tracking tools help detect unauthorized subscriptions by providing visibility into all recurring charges.
Related Terms
Dark Patterns
Deceptive user interface designs that trick subscribers into actions they did not intend, such as making cancellation unnecessarily difficult.
Cancellation
The act of ending a subscription, which stops future billing and eventually terminates access to the service.
Payment Method
The financial instrument used to pay for a subscription, such as a credit card, debit card, PayPal, or bank account.
Consumer Rights
Legal protections for subscription consumers, including rights to cancel, obtain refunds, and receive transparent billing information.