This can be an assumed identity fraud where an individual pretends to be someone that he is not. Or it can be a financial scam where an individual provides false financial details in order to acquire credit.
2. Lost or Stolen Credit Cards
With the advent of modern technology, even the credit card scams have gone high tech. Nowadays, tricksters produce fake credit cards and trick merchants. They also copy information from the magnetic band on the reverse of the credit card, or the information stored on the smart chip.
3. Postal Intercept Deception
This happens when a card is stolen from the postal service prior to it reaching its owner. Postal intercept fraud has become a less famous aspect of credit card fraud, especially in the EU.
This is primarily due to successful monitoring of those who work for the postal service. Also, the card issuers have also started to take various safeguards such as requiring personal identity confirmation at the point of credit card activation.
4. Site Cloning and False Merchant Sites
On the Internet these are fast becoming a common technique of credit card scams for many fraudsters with a proficient aptitude for hacking. They make people provide their credit card details without realizing they have been tricked.
Precautions To Be Taken To Avoid Credit Card Scams
The best way to avoid credit card scams is to be on the lookout for any fraudulent activity. Be alert whenever you are using your credit card. Whenever you give your card to the merchant, keep an eye on it. See what he is doing and take it back as soon as possible. Do not let it go out of sight for too long.
You must not give out your credit card number on the phone to someone you do not know. The trickster may call you up pretending to be from the card company or some other company you do business with. Still do not give your card details to him. Insist on calling back on the number you have of the company.
Do not respond to any email that asks you to disclose your credit card details. Be extra cautious of emails that ask you to click on a link and verify your financial information. They are mostly 'phishing' scams. If you want to check the site, do not click on the link. Instead type out the url on the address bar and check the authenticity of the site. Be careful not to provide credit card information on any unsecured website.
Some More Do's and Don'ts
Don't write down the PIN number on your credit card or even keep it in your wallet. Your wallet is equally prone to being stolen.
Do make sure that you keep your credit card receipts properly and do not keep them lying all around you.
Do be careful that others around you cannot copy your credit card number.
Don't carry all your credit cards all at the same time. If your wallet gets stolen, then all the cards will be lost at one go. Ideally, it would be better if you carry your credit cards in any place other than your wallet.
Don't lend your credit card to any one.
Do scrutinize each item on your credit card bill to ensure that you have not been overcharged.
Don't sign a blank credit card receipt. If at any time, you feel victimized, you must promptly let your issuer know.
As long as there are credit cards there will be credit card scams but common sense and vigilance coupled with ever developing scam detection technology should make credit card fraud rather negligible.
As being the pressures of mounting consumer debt becomes an issue for more and more people, the demand for legitimate and proven ways to rebuild your credit history is on the rise. The word "budget" conjures up extreme images of depriving oneself of the foods one likes or more extreme visions of starving oneself pop up. However, a proven formula for debt management and the rebuilding personal credit and credit scores using a specific type of credit card dispels such visions.
Not only are these credit cards beneficial, they also provide for some consumers the only way out, especially if they've been denied a bank account or traditional credit card. Given that it takes two incomes in most households and a great majority of men and women both are in the workforce these days, there is hardly any time to prepare budgets and investigate ways to increase their credit scores.
They say a journey of a thousand miles starts with the first step. Let's take our first step and evaluate both secured and pre-paid credit cards and the pros and cons of each for your situation.
Secured Credit Cards
Pros - Opening a secured credit card account is a simple and affordable way to start building your credit. Secured credit cards will also help you improve and rebuild damaged credit. These cards are used exactly like a standard run of the mill credit cards you are familiar with.
Cons - One of the major drawbacks to this type of card is that to secure the card you must put down a $200 to $250 deposit with your application. For many this may be a tuff requirement. These cards also tend to have much higher interest rates (15% or higher) and additional charges such as an annual fee (usually around $50). Despite these drawbacks, for many looking to rebuild their credit, these cards make sense.
Pre-Paid Credit Cards
Pros- Pre-Paid Credit Cards can be a great tool because they provide you with the freedom and flexibility of using your own cash. These cards look like real credit cards and can be used for just about any situation that requires a credit card. Instead of granting you a credit limit based on your financial standing, these accounts require you to "load" the card with your own money. Yeah, real cash. Approval for this type of card is easy and almost guaranteed, even if you have credit problems.
Cons - If you are looking to rebuild or establish your credit however, beware.These cards may not report your repayment history to the credit bureaus. If the creditor does not report your account, this type of account will not help you improve your credit. By carefully selecting these cards, you can assure yourself that you receive the most bangs for your proverbial buck.
You might also consider that Pre-paid cards cannot be used in all situations. For example: hotels and car rental agencies may not allow you to use a pre-paid credit card to secure your rentals. It's always a good idea to call ahead first and ask each company their policy before entering into any transaction.
Both Anthony Samuel & Brian Stephenson are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Anthony Samuel has sinced written about articles on various topics from Check Credit Rating, Airline Credit Cards and Credit Cards. This article was brought to you courtesy . A credit card directory where you can search, compare and apply for. Anthony Samuel's top article generates over 74000 views. to your Favourites.
Brian Stephenson has sinced written about articles on various topics from Credit Cards, Valentines Day and Cover Letter. Brian Stephenson is the President of a credit and debt product review company based in Houston, Texas.. Brian Stephenson's top article generates over 14800 views. to your Favourites.