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Adult Webcam Fraud and Scamming. Everyone ever involved in the adult industry knows it’s a high profit but a very high risk industry.
Banks, credit card processors stay far away, companies like PayPal won’t even go near the industry because it is a know fact that adult industry derives a big fraction of their profits from the rebills. That is because they count on the fact that people forget to cancel their memberships or simply don’t want to go to the hassle of canceling a membership. Another major shift in the industry is created by the fact that reputable and legit webcam sites (adult entertainment, cams, streamray) and other serious adult service providers started accepting crypto-currencies, blockchain currencies like bitcoin.
The reason is simple, so many people wake up second morning after watching few cam shows and spending some money and they regret their actions, they regret spending the $40 to sign-up for a site or the $20 to watch a live girl. In other words the user signs up for the site does his business and somehow the next day he feels either ashamed or angry with himself for the past night actions. So what he does next… being remorseful he goes in denial and calls the credit card company to dispute the charge to claim it wasn’t him. Legit reputable sites are aware of this and they simply refund the purchase because it’s considered the cost of doing business. However in general the user is placed on a ban list with the major providers and this can’t happen again and again.
So what ends up happening is people are usually angry on themselves or in denial and they have to direct their anger somewhere. In most cases they go after the sites leaving a bad review or trashing their reputation.
From my experience no website in the adult business will make it past the 6 months mark being shady or scamming people. I am not saying that scam sites don’t exist, but for the most part the so called “scams” are legit sites where users somehow got angry either on themselves for paying for services or on the site for rebilling them (because they forgot to cancel). Of course is part of the human nature to blame someone else before looking at your actions.
There are plenty of articles online discussing this kind of user behavior where a man acts on impulse just to feel remorse next day. And it’s not only about man, but when it’s about the adult industry it’s man mostly because man watch more adult material online than women.
See the LifeHacker article here.
It is a matter of a user rationalizing something that they did and are not very proud of.
See the Buffer articlehere
Meanwhile you can read few more articles on this on Google Plus, Reddit and Tumblr.