Identity theft - Watch out for new charge card scheme

An increasing number of identity theft crimes involve the use of the Internet; phishing scams probably pop up in your e-mail inbox every single day. A recent identity theft scheme that threatens people employs credit card details and an old fashioned telephone. The crisis of identity theft is a growing one and criminals are coming up with new scams every day to rob consumers of their personal information.

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Stealing a victim's Social Security number permits the crook to do a large amount of harm, as she can pretend to be you for all manner of transactions, including taking out a home loan. While identity theft most often makes use of obtaining the Social Security number or driver's license number of the would be victim, a lot of scams involve only charge card numbers. The possibility for financial damage isn't quite as significant with the loss of a bank card number as it is with a Social Security number, but you might still lose a lot of money via theft of your charge card number.

In a recent identity theft scam, the crooks call their victims and identify themselves as employees of the bank that issued the credit card. They say that they are contacting the victim to notify them that their credit card has been used to make a strange purchase. The item and the price are not familiar to the would be victim, who assures the caller that they did not authorize the purchase. The caller maintains that everything is Fine, and that they will credit the victim's account for the purchase amount. For safety reasons, they ask the victim to give them the three digit CVC2 code from the back of the card. The caller explains that providing the number will confirm that the cardholder has the card. If the victim gives them the number, they have all they need. What the victim may not understand is that they probably have your credit card number already, and they just needed that extra information to use it.
 

The CVC2 code was added to cards to offer extra verification in the event of an online or telephone purchase. A lot of online sellers request the CVC2 code in their checkout pages. If an identity thief possesses the CVC2 number, they can use the credit card at any one of tens of thousands of online stores to buy anything they like. This credit card trick is growing in popularity, and many consumers are falling for it.

How can you avoid becoming a victim of this charge card scam? You will only be held liable for fifty dollars in unauthorized charges if you report the crime to your bank, but if you do not report the crime, you are liable for everything the criminal buys. You have no need to prove whether or not you have the credit card, as you are accountable for it whether you have it handy or not. If you find that you have had your card or your number taken from you, you should immediately report it to the bank. You can avoid becoming a victim of this credit card scheme by refusing to give out personal information to strangers who call you on the telephone. Your bank doesn't need your CVC2 code, as they already have it.