Credit Card Scam
Maylene Renninger
How does the scam work?
There are a few ways in which criminals can make you fall for credit card scam:
•Offers to Skip a Payment: If your credit company invites you to skip a monthly payment without a penalty, it is not doing you a favor.
•Teaser Rates: Some cards are advertised with very low introductory interest rates called teasers. The rate is good for a short period of time.
•Credit Insurance: When you take out a loan for a big purchase, a salesperson may try to sell you credit insurance. The coverage may be promoted as a way for you to protect yourself if your property is damaged or lost.
Scammers may use spyware or some other scam to obtain your credit card details. A scammer might steal or trick you into telling them your security code (the three or four digit code on your card) and then make purchases over the internet or the telephone. If they know your PIN, they could get cash advances from an ATM using a ‘cloned’ credit card (where your details have been copied onto the magnetic strip of another card). Of course, there is also a danger of someone using your credit card if it has been physically lost or stolen.
Who does the scam target?
A credit card scam can target virtually anyone with a credit card. People with little knowledge about this scam can be targeted for an easy steal. Small business owners are also targeted.
Who will be hurt?
Many people can be hurt as a result of a credit card scam. The victim’s credit score could potentially take a drastic turn after a credit card scam. Small business owners could potentially be hurt. People paying the charges such as the victim or thief could also be hurt. Banks could also be hurt, losing lots of money.
What is the economic impact?
With this type of crime, there is usually a great economic impact. If not caught, thieves could potentially earn thousands of dollars, without you even suspecting a thing. Even if they are caught, someone still has to pay for the loss or damage. With Target as an example, there was millions of dollars in lost inventory and more replacing credit cards.
What makes it believable?
A credit card scam is believable because they usually involve trusted names. An email providing a link from your credit card company could be a phony and when pressed, could start installing malicious software that could have opened up account information to the crooks.
Do you think the average person would fall for this scam?
The average person could potentially fall for this scam if not educated about the dangers and signs. It is very easy for criminals to steal your information and in today’s world, it is increasingly important to watch your information and keep it safe from potential thieves.
What does this scam rely on to be successful?
A credit card scam relies on unaware people and trusted names to be successful. With unaware people, it is easy to make them fall for a scam and provide their confidential information. Trusted names such as credit card companies may be the key to tricked some into opening that email or answering the phone.
What emotion does the scam depend on?
A credit card scam depends on the emotion of greediness, trust, and distraction. Some might be greedy offering a reward on a link causing you to install malicious software with a click on the link. Trust plays a role with emails or phone calls from a trusted credit card company, not knowing that the people behind the name are criminals and not your credit card company. Distraction can be involved when not paying attention to others looking at your information and stealing it.
Report a Scam
Think you’ve been scammed? Report it immediately!
Call: 1-800-run-scam
Email: reportascam@gmail.com
Or visit: reportascam.com
Disclaimer: None of the above contact information is accurate or true. Please do not try to call or email or visit the website! :)