Credit Card Scams
In the financial world today, we all rely on credit to do
business and get around. Those of us that don't use credit
cards as a habit still have one for emergency use and for
convenience so we can reserve airline flights, hotel rooms
or rent a car.
So, having a credit card is almost a necessity in today's
society. With the ease and convenience of use of credit
cards, comes the potential for abuse not only by ourselves
overusing them, but by others who get ahold of information.
As a result, there are increasingly more reports of credit
card scams today.
These scams can range from identity theft to people hacking
into our computers to obtain credit and financial
information. In one recent credit card scam, a person
calls the home of the credit card owner. The caller
pretends they are calling from a Security and Fraud
They claim they have flagged your account for unauthorized
purchases and they want to give you a credit on your
account. The caller then says he needs your information,
verifies your address and name on the account and asks for
the 3 numbers on the back of the card. These 3 numbers are
the security code that proves that you are in possession of
Within a few days, the caller is fraudulently charging on
your account using the security code numbers that you have
given them. So, consumer beware. If someone calls you
asking you for any credit card information, refuse to give
it to them.
The credit card companies won't call and ask you for this
information because they already know it and have it on
file. If you encounter this situation, hang up and call
the police and the credit card company. Con artists may use
a variation of this type of scam as they may have part of
the information from your account and then they're calling
you to"verify" the remainder of it so they can fraudulently
use your credit card.
There are some unscrupulous scams in the form of guaranteed
credit and loans via emails on the internet. Many emails
of this nature are simply looking for you to give up your
personal information online to them so they can use it for
To protect against internet style credit scams, keep your
computer safe with updated antivirus software, antispy
software, a firewall and an antiphishing toolbar. As
common sense dictates, if you receive an email promising
you easy credit repair and a guaranteed loan, do not
respond to it by giving out personal information. Identity
theft is so prevalent today that there are multitudes of
companies now promising you protection for a monthly fee.
The best way to protect yourself without resorting to a
monthly bill is to know what to beware of. If you lose
your wallet or checkbook, or if it is stolen, cancel all
credit cards and accounts and report it immediately. Shred
all personal documents and information before disposing of
it to prevent dumpster diving scams.
Beware of mail theft as identity thieves can use credit
card offers or payment envelopes left for pick up. Another
scam is a con artist posing as a person with a valid reason
to obtain personal information. Unfortunately, identity
theft can also be done as the result of an inside job by
family members, friends or even a babysitter with access to
your personal information.
Means of prevention of identity theft are cancel all
inactive accounts, sign your credit cards and don't give
out personal information when using your card.
You can request electronic versions of bills and
statements and direct deposits of your payroll checks.
When you receive your monthly statements, check all items
to ensure there are no unauthorized purchases.
About the Author:
Danna Schneider is the founder of
www.creditcardcatalogue.com for information on low
interest credit cards, special deals on low to no interest
credit cards, and the best deals currently going in credit
and loans. She also manages an online financial and credit
info blog www.primeratecredit.com .