A credit card scam is a form of theft in which a criminal uses your credit card number to make fraudulent purchases. Criminals use numerous sneaky tactics to gain access to the credit cards of unsuspecting individuals.
Over the Internet, on the phone and even at a restaurant, con artists can use trickery or traditional purse snatching to get your credit cards. In the fight against credit card fraud, knowledge is the most important weapon to combat this agonizing and frustrating crime.
Most often attempted over the Internet (but sometimes over the phone), phishing is a tactic that has flooded the inboxes of hundreds of thousands of personal e-mail accounts. In this scam, a thief uses various rouses to get you to hand over your credit card information so he may use it for online or mail-order purchases. Credit card specialists have dubbed this scam "phishing" because thieves are essentially placing baited hooks and fishing for credit card information.
Con artists may use a variety tricks when commiting phishing scams, with new twists being added frequently. One of the most common is when a criminal contacts you "on behalf" of your credit card company or bank. Either through e-mail or over the phone, the crook will cook up some excuse for validating your credit card information.
However, most reputable businesses have stated that they will never request this kind of information via phone or e-mail, so ignore these requests. If the e-mail appears legitimate, call your credit card company directly to validate the request.
Though phishing scams have received plenty of media lately, there are simpler (and more prevalent) types of credit card fraud. Here are a few of the criminals'' favorites:
Being cautious with your credit cards is an important step in ensuring you don''t become a victim of credit card fraud. Here are some tips that credit card fraud specialists suggest to help you avoid credit card scams:
If your card is lost or stolen, or you find fraudulent charges on your bill, contact your credit card company immediately. A toll-free number can usually be found on the back of the credit card, on monthly statements and the company''s website. In most cases, you need to cancel your credit card and obtain a new one with a new number.
Under U.S. law, you have no responsibility for unauthorized charges after you have reported the card lost or stolen. Most banks will also not hold you responsible for fraudulent charges made prior to fraud claim, provided their investigation concludes your claim is legitimate. If caught, credit card thieves can receive between one and ten years in prison, depending on the severity of the case.
Federal Trade Commission (n.d.) Secured credit card marketing scams. Retrieved March 17, 2008, from the Federal Trade Commission Web site.