Scams, Schemes, and Identity Theft

Credit Repair Scams

How Does The Scam Work?

žCredit repair scams offer to help rebuild people’s credit, but require a hefty up-front fee. When this is paid, the fraudulent company does nothing to help the persons credit as promised.

Who Will Be Hurt?

žThe person that will be most hurt is the person that takes the offer. If they already have credit or money problems, the last thing they need is to spend a large amount of money on a scam that does nothing to help them.

What Is The Economic Impact?

žThe economic impact is negative, because if this continues to happen to a number of people, then many people’s credit scores will remain low and cause them to not be able to buy a buy a house, car, etc. This affects the economy negatively because if people can’t buy these things then there is less money flowing through the economy.

Would The Average Person Fall For This Scam?

žYes, if someone is desperate to fix their credit, then they would fall for a scam like this that promises to fix their credit.

What Makes It Believable?

žThe part of this scam that makes it believable is that the scam company promises multiple services and money-back guaranteed, which makes the victim feel safe about the decision of paying the up-front fee.

What Emotion Does This Scam Depend On?

žThis scam depends on the feeling of desperation someone feels to fix their credit.

What Does This Scam Rely On To Be Successful?

žThis scam relies on people who do not know how to manage their credit and are desperate to fix the damage that they or someone else caused to their credit.