A couple of months ago, a guy posted on an online forum that his now-deceased mother opened up a credit account under his name without his knowledge and that he is now liable for the debt that had accumulated under it. Sounds like a story that can only come from a scary crime fiction novel, right? Well, the only scary thing here is that it’s a real story.
If that was not scary enough for you, there was also a reported case where a mother stole her kids’ identities in order to open up 12 credit cards! That is just crazy!
What I am trying to say here is that nowadays, credit card scams can come from anywhere and anyone! So, we sought out some help from an industry expert, HTP Enterprises Financial, to share with you the most prevalent credit card scams that you should beware of.
- Identity Theft.
Since I have mentioned this above as a prime example, let us talk about it first. Identity theft can come in all shapes and sizes but the two most common cases are when 1, someone pretends to be you and apply for credit cards (like the examples above), or 2, when someone uses your personal and credit card information to use your actual credit card.
Both cases are scary but there are a lot of ways to avoid it.
- Be wary of the kind of information you give away to anyone. Never, and I mean never, give your password and/or full credit card number to anyone. Scam artists are getting more and more creative these days so always stay vigilant.
- Dispose of your billing statements properly. Remember, these documents probably hold valuable credit card information that anyone could use to their advantage. The same rule applies for old and expired cards and everything else that has your credit card number on it.
- Card Theft.
We all use our credit cards like cash, right? So use it like one. Avoid using it in ways that you would never use actual, physical money for. Going out with friends on a Friday night and keeping an “open tab” sure does sound like a convenient plan, but would you really do that with actual cash? Probably not. So, if you prefer using your card, just swipe it as you order but keep it with you at all times.
Also, avoid leaving your cards unattended for extended periods of time as that makes it vulnerable to thieves. After every transaction, double-check if you have your card back with you and put it immediately back into your wallet or purse. Better safe than sorry, am I right?
- Online Phishing.
Most of us have our accounts all linked up online which is pretty convenient. However, the convenience does not end on our side. If accessed by the wrong people, things can go south faster than you think. So, be wary of your online activity. Only make your purchases from legitimate and verified websites, avoid clicking suspicious links, and refrain from saving your PINs and passwords on an online platform.