Being warned of new credit scams is not really anything new, however, the way scammers are looking to steal both personal identification and your money, is. With so many warnings constantly hitting the internet, it almost seems better to just stay home and shop from there, but if you’re like most other people who head out with debit or credit card in hand, here are a few ‘new scams’ to be aware of.
One of the newest scams to hit the market is aimed mostly towards investors and businesses. A ‘letter of credit’, which is a legitimate financial contract, is being sent to investors as a guarantee of payment to a seller. More times than not, the investors later find out they’ve been scammed with high interest rates of between 100 per cent and 300 per cent!
The comforts of bluetooth have definitely made life easier for any of us who have used it, and now, most electronics come with such features. Unfortunately, the dishonest have found a way to use bluetooth to steal personal information. Yes, scammers have been caught abusing bluetooth by wirelessly transmitting debit and credit card information back to their ‘base’ via skimming machines that have been planted in restaurants, ATM machines and gas stations.
Phishing emails are not necessarily new when it comes to comparing such devious acts to the new bluetooth problem; however, phishing emails most certainly have come a long way in their look. Copying company logos or duplicating a banks webpage has raised concern as more and more people are filling out personal information and hitting ‘send’. This is then used to reproduce fake credit and debit cards in your name.
The recession has caused many people to fall behind on their mortgage payments. Scammers are out and about seeking people who are in financial distress and assuring them they can stop the sale of their home regardless of how far behind they are on their payments. The scam involves homeowners paying these companies hundreds of dollars a month to prevent foreclosure. Mortgage rescue scam also involves signing over the deed to your house. The scammers then transfer the house into their name and then rent or sell it. Legally, the original homeowners are often still liable for the mortgage payments.
Trying to rebuild a bad credit rating can take a long time, however, secured credit cards can definitely help this process. It is worth taking note on which credit card company you chose. Some of these companies offer secured cards with more fees on them than your balance. They charge monthly service fees and annual fees as well as set-up fees and activation fees, all this on top of incredibly high interest rates. Your balance is gone before you’ve even had a chance to make a purchase.
There are also many companies out there who offer overnight (or the next best thing) credit repair. The idea is they claim to be an agency that can help clean up your credit rating by having certain things removed off your report or that they have inside links and can even have debt forgiven. Of course, there is no such legitimate service and unsuspecting people fork over hundreds of dollars in the meantime. If you are looking to repair your credit, it is best to do some homework and check out any potential company you are thinking of doing business with. One great way to know if they’re valid or not is to look for a BBB (Better Business Bureau) logo on their home page. Many legitimate companies that are worth doing business with will have ensured they are registered for both their protection as well as the protection of their clients.