Credit Card Scams

Scammers prey on unsuspecting victims. Through the use of tricks and schemes, they cheat others out of money. As technology changes, scammers are continuously coming up with more sophisticated tricks to target and catch the public off guard. Being vigilant and protecting sensitive account information can help individuals protect themselves from fraudulent credit card activity.

Common Types of Credit Card Scams

Skimming Devices are installed by a fraudster at a gas pump, point-of-sale terminal (POS), or ATM machine. The data collected by the skimmer is used to create fake credit cards and steal from victim accounts.

Phishing A fraudster posing as a legitimate company gathers credit card information through an email, text message, or website. Victims are given fraudulent instructions or asked to click on a link where they are requested to provide sensitive information.

Credit Card Interest Rate ReductionA trickster poses as a third-party company promising a lower interest rate to consumers. Victims are coaxed into disclosing their credit card number to the scammer to cover the fee for the fraudulent debt relief services.

Social Security Benefit Scammers tell victims their benefits were overpaid and some money needs to be paid back via credit card. Victims may be forced to provide not only personal information, but even their Social Security number.

Identifying Credit Card Scams

There are several signs that can help an individual identify a scam. First, fraudsters give the appearance they are contacting an individual as a representative of the government or a known business, such as a charity, utility company, or credit card company. Second, scammers pressure victims to take action. A scammer may threaten to sue the victim or have the victim arrested. Third, scammers lure victims in by telling them they are in trouble or there is a family emergency.

Avoiding Credit Card Scams

To help protect yourself from credit card fraud, there are some practical steps you can take. As a rule of thumb, if it sounds too good to be true, it most likely is. Legitimate businesses will not force you to act immediately or tell you to send money out of the blue. Never disclose your personal or financial information to a person you do not know or in a call you did not initiate. Furthermore, check your credit card statements routinely and set up alerts on your credit card accounts so that you are notified when purchases are made.

Be careful exchanging sensitive or financial information when using public internet access. Public Wi-Fi connections offer no privacy, so consider purchasing a virtual private network (VPN), or wait until you have access to your own home network.

Consumers are able to request a credit report from all three credit bureaus once a year for free. Additionally, signing up for credit-monitoring services will enable you to receive an alert when new activity is added to your credit report. Consumers also have the ability to freeze a credit report. This will prevent new accounts from being opened in your name.