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How to Stay on Top of Credit Card-Related Scams

Identity Theft

It is no wonder that credit card-related scams are on the rise. Many credit card thieves and scammers have taken advantage of the countless Americans who are in some type of financial difficulty.

In short, they are preying on the most desperate Americans. Although this sad truth is all too prevalent in today’s society, there are a number of things we can all do to protect ourselves from credit card scammers. In particular, we need to know what to look out for. Here are some of the latest credit card-related scams that have come to light:

• You should never have to give up your credit card or banking numbers on a job application. This newest credit card fraud took individuals who were anxious for a job for a ride; these scammers faked jobs and lured individuals into thinking they were being hired for a position. As a result, many individuals willingly gave up their personal credit card and banking information on these fake job applications. The scammers made the applicants think that they were merely checking their credit report; instead, they took them for a ride by stealing their credit card information.
• You should never become involved with any type of debt assistance company before thoroughly checking their credentials. There have been a number of debt assistance scams that have convinced individuals to pay them a fee in return for either erasing or reducing their credit card debt by working with their creditors. Unfortunately, all they did was take off with these consumers’ money.
• You should never give your credit card numbers over the phone unless you initiate the call. Credit card phone scams have been increasing as of late, so it is important to pay close attention to anyone soliciting you and promising you lower rates. Never, ever give your credit card information to anyone who calls you; there is absolutely no way to verify who is making the call. If you have any question regarding whether it is really a legitimate call, ask for their name and phone number and immediately contact your credit card company to check the validity of the credit card offer.

Beware of Credit Card Scammers Asking for your Security Code

Identity Theft

We all know to be aware of credit card scammers, but sometimes a new scam comes along that simply throws us for a loop – and scammers are counting on it.

Many of us already know that retailers are now using the security codes on the back our credit cards as a way to curb credit card fraud. For example, the last time you made a credit card purchase over the phone or online the retailer likely asked for your credit card’s three-digit security code, as well as the card’s number and expiration date.

This is done to prevent credit card thieves from placing unauthorized charges on your credit card account without your knowledge. In other words, having a credit card holder’s credit card numbers is now simply not enough for scammers; they must also have the card’s security code to break into your account.

The Newest Scam and how it Works

Credit card scammers have now found a new way to fool credit card customers into giving up their three-digit security code (surprise, surprise), so here’s what you need to know about this scam so it doesn’t happen to you.

The scam goes something like this: a credit card thief (who is already in possession of your credit card number) calls you, claiming to be from your credit card company; probably from the security or fraud division of your credit card company. The caller then recites your address to ensure that you are the cardholder, and lets you know that your card may have been stolen, or that unauthorized charges were placed on your account.

The caller then asks you to verify that you have the card in your possession. And, of course, the only way to do this is by reciting your security code to the caller. Bingo – you’ve just been scammed.

It is important to understand that, at no time, will your credit card company ask you to reveal any private information, including your security code. If you have any doubt about the legitimacy of a call, simply hang up and contact the credit card company directly.

Newest Credit Card Scam Targeted at Veterans

Identity Theft News

We all must be aware and diligent when it comes to protecting our credit, as credit card scammers seem to be keeping up with the best efforts of industry fraud experts.

It is important to note that no one – and I mean no one – is safe when it comes to credit card scammers.

Case in point: the Department of Veteran Affairs recently sent out a warning to all veterans, as the latest credit card scam appears to be targeting this group.

The scam against veterans works when a scammer calls a veteran, posing to be a VA worker. The scammer then proceeds to ask for the veteran’s credit card information so that he/she can update the veteran’s prescription information. The scammer often informs the veteran that the VA has changed the process of dispensing prescriptions, so they need a credit card to do so.

Veterans need to understand that the VA will NEVER ask them to disclose their personal or financial information over the phone.

Although this scam is not new, the Department of Veteran Affairs has noticed a sharp increase in this type of scam as of late. And credit card scams are just one of countless scams targeted at veterans at any give time. Other scams targeting both active military and veterans include life insurance scams, payday loan scams, car title scams, repair scams and loads of fraudulent discounts.

How to Protect yourself from Credit Card Scammers:

• Never reveal personal or financial information to ANYONE unless you have initiated the call.
• If you are ever suspicious of a call, simply hang up and contact the company directly to address the validity of the call.
• Never open or respond to unsolicited emails, even if they claim to be from a trusted source. Banks, credit card companies and the VA will never ask for your personal information via email.
• Only do business with trusted sources.