Credit card fraud costs cardholders and credit card companies hundreds of millions of dollars every year.
Consumer issues are dangers that all people who purchase or trade goods and services face every day. They stem from crooked corporations and greedy individuals; the internet has been a catalyst for scams that look trustworthy with professionally put-together websites and fake customer reviews. You can avoid the most destructive problems by being a well-informed consumer.
Identity Theft
Identity theft can ruin your credit, saddle you with debt you did not accrue and lead to years of lawyer and court fees. You can minimize your risk of having your identity stolen by taking precautions: Shred all your financial information and personal information before you throw it out. Never write your social security number on a check, give it to someone over the phone or send it through any other unsecured communication, such as email. Store your financial and personal information in a secure area, either electronically password-protected or physically in a safe.
Mortgage Assistance Relief Scams
With the increase in foreclosures, a new scam has been spreading: mortgage assistance relief. These bogus companies offer you credit counseling and loan modifications; they will also offer to deal with your lender directly to negotiate your mortgage payments. They claim that they will provide all this for you once you pay them a fee, but once they get that fee they will disappear. Some scams will not only ask for an initial fee but will also ask you to send your mortgage payment directly to them while they are negotiating with your lende; this can go on for several months before they, too, disappear with your money.
Marketing Fraud
Domestic and international marketing fraud rings present themselves as charities, lotteries, relief aides and even religious organizations. To avoid dealing with groups that are not what they appear to be, never wire money; it is like sending cash, as there is no protection for monetary loss. Do not deposit checks for people you do not know; if the check is fake you will be responsible. Never give out personal information to an organization that you have not researched or via text message, phone or e-mail, as these are not secure ways to transfer information. No legitimate company would ask you to divulge your information in a non-secure forum.
Credit and Charge Card Fraud
Credit card and charge card fraud is considered a form of identity theft. Thieves will go through your trash to find documents, such as receipts, with your card number. Other scammers will duplicate your card if they have it in their possession, even for only a few minutes. Any subsequent use of your card will leave you to sort out the fraudulent charges with your credit card company. To avoid credit card fraud, shred your receipts, never loan someone your card, sign the back of your card as soon as you get it and report suspicious charges to your credit card company as soon as possible.
