How to avoid the many common credit card scams
Almost everyone could use an additional line of credit right about now. If you find yourself in what seems to be a desperate financial situation, you might become a target for credit card scams. There are always individuals and institutions who are more than willing to take advantage of someone who feels they have no other options. Credit card scammers abound and they have a variety of subtle and not-so-subtle ways to part you from your cash. In the past, we've learned to expect that high interest rates went with the territory. As though that were the worst result. Credit card scams are now being perpetrated on unsuspecting consumers at an alarming rate. Let's see how these scammers work and how you can protect yourself.
Credit card scams are often run over the telephone. One such scam has recently gained national attention, resulting in hundreds of thousands of cases of identity theft. Here's how this one works:
Your phone rings. You answer, only to hear a recording: We're calling to speak to you about your current credit card. There's nothing wrong with your account and your account is in good standing. We do, however, need to verify certain information about your account, in order to serve you better. If we don't receive verification, your account may be closed. I've received a dozen such calls. When I hear this line, I hang up. Why? If there's nothing wrong with my credit card, why are they calling? Surely they have enough customers who are delinquent! The recorded voice does not identify the credit card in question, nor the bank. The credit card scam caller is preying on your fears. Are they going to raise my APR? Are the proposing new conditions to my agreement? Didn't they receive my last payment? Everyone is so paranoid now about their credit standing, they become easy prey to these innuendos.
What are these credit card scams about? You can bet that they don't know which credit cards you might hold. Their objective is to find out! The scammers make calls on random telephone listings. If you hang on to talk to them, they'll typically say that they only need to verify that your current information is correct, including bank, credit card numbers and other personal information, such as your social security number, place of birth and mother's maiden name. All in the name of 'updating and verifying your information'.
Should you divulge such data, your identity may be sold on the black market within 24 hours! If you take a close look at your bank agreement, you'll discover that your bank will never ask for or divulge any of your personal data over the phone. The credit card scams are fishing expeditions that pay scammers well! Don't fall for it!
As for online offers, you must be equally diligent. Always, read the fine print, and, in particular, the 'Terms and Conditions', before providing any personal information. The terms and conditions can be a confusing legal mouthful. If you don't understand every point of the conditions, don't apply and submit until you've got clarification from the would-be provider. If the provider will not send a response addressing each of your points, chances are good that this is a credit card scam.
There are so many scams being run on credit card applicants and holders. Don't you become their latest victim!
