Financial scams and credit card shenanigans

The latest scam makes use of your bank card and a call from a person who may or may not be from your bank. Due to the number of scams that are prevalent today, everyone should be cautious when discussing personal information on the telephone. Consumers should be aware that scam artists are finding ever more clever ways to obtain financial information.

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These days, for business purposes, you are your financial information. All it takes for someone to pretend to be you is to have some financial information no one has but you. Once they have such information, they can open accounts in your name, obtain loans or mortgages, and spend money like there is no tomorrow. How do crooks obtain vital personal information from people? Often, all they do is ask for it.

In a current credit card scam that is making the rounds, criminals are calling consumers and posing as representatives of their credit card company. 

It's easy to get a consumer's credit card number, but to take part in Internet business, you will also need a piece of information from the back of the card. That is a number known as the CVC2 or security number, which is a three-digit number that is printed only on the back of the card. The security number does not appear on the statement or anywhere else. If a criminal should possess your credit card number and the CVC2 number, they can go on a nearly unlimited spending spree and all of the bills will belong to you. Many online shops require this number as confirmation that the buyer is the actual cardholder. 
 

The scheme is carried out by someone who contacts you and introduces himself as a representative of your credit card company. He says that he is calling you because of some unusual activity on your account. He mentions some odd charges that he knows you did not make, and you indicate you did not buy those items. He assures you that he will clear up any trouble and credit your account. He then asks you for the number from the card to "verify" that you really have it. If you give him the security number, you have been scammed.

If you provide this information, it may cost you a great deal of money. Consumers are frequently very trusting, and if a stranger calls and says they are from the credit card company, many, if not most people will trust them, particularly if they have your full name and charge card card number. You are the cardholder on the account, so your issuer doesn't care if you actually have the card in your possession. they have no reason to ask you for identifying information from the credit card. Remember that no financial institution will ever ask you to provide information that they already have.

If you receive a call from your credit card company and you do not know if it is genuine, call the card-issuing bank on your own. Do not ever provide financial or personal information to a stranger who calls you from out of the blue. If you call the credit card company, then you will know for sure who you are talking to and you can then discuss the matter in person.

These sorts of things may strike you as obvious, but thousands of people fall victim to these crimes every year. There is no way to legislate common sense, so it is up to the individual to make sure that he or she is diligent in avoiding these crimes.