Logan Square Target Trip Turns Into $5K Tap-To-Pay Nightmare

What was supposed to be a quick Target run in Logan Square turned into a financial shock for Emilie Kostecka. She says three men approached her on the sidewalk next to the store, one of them holding a binder with photos of a child, while another offered to hold her phone. Kostecka says she never completed a donation on her device, yet later discovered a $5,000 charge for carpentry services that she insists she did not authorize. She reported the transaction to the police and opened a fraud dispute with her bank.

How the scam played out

Kostecka told NBC 5 Chicago that she flipped through the binder while a man held her phone, supposedly to make a small donation. She maintains that no donation was ever completed, yet a large charge appeared on her account soon afterward. She reported the transaction to Chase, which initially decided she was responsible for the payment. After NBC 5 Responds reviewed her complaint, the bank said it reopened the dispute and ultimately credited her account, according to NBC 5 Chicago.

Wider pattern in Chicago

Across Chicago, reports describe a similar playbook. Strangers approach people for a small donation, reject cash, and ask them to tap their phones to pay. Later, victims discover that instead of a few dollars, thousands have quietly vanished from their accounts. As reported by CBS Chicago, some victims have seen nearly $5,000 in charges and have had to push their banks for months before finally getting refunds. Consumer and neighborhood groups have been spreading the word, urging residents to say no to tap-to-pay donation requests on the street.

What federal rules say

Behind the scenes, federal rules do give consumers some backup when electronic payments go sideways. The Electronic Fund Transfer Act, implemented through Regulation E, sets out how banks must handle disputed electronic transfers. Under the Consumer Financial Protection Bureau's rules, banks generally have 10 business days to investigate reported errors. If they need more time, they usually must provide provisional credit while they continue their review, according to the Consumer Financial Protection Bureau.

How victims can protect themselves

"It can happen truly to anyone," Kostecka told NBC 5 Chicago, adding that she is now rethinking which payment apps she keeps on her phone. Target told NBC 5 it will assist law enforcement with any investigation into incidents like this. Chase, for its part, reminded customers not to hand their cards or phones to others and to double-check the dollar amount before confirming any tap-to-pay transaction.

Practical steps if it happens to you

Consumer advocates say the simplest move is often the safest: do not tap to pay for unsolicited donations in public. The Better Business Bureau has labeled so-called "ghost tapping" a growing threat and recommends contacting your bank immediately, freezing or cancelling the affected card, and filing a police report to create an official record, according to the Better Business Bureau. If your bank refuses to reverse the charge, you can try again with a new dispute, file a complaint with the CFPB, or talk with a lawyer about civil options. Keeping receipts, screenshots, and names or descriptions of anyone involved can help support both bank disputes and police investigations.