How Credit Card Scams Work

by Violet WillettMarch 14, 2024
How Credit Card Scams Work

Credit card scams are a common issue in the modern world, where digital modes of payment are becoming more and more popular. There are many types of credit card scams that are prevalent in society today. Read on to discover the top credit card scams you may come across in your daily life.

The charity scam

It is great to see people come together in the face of adversity. Unfortunately, this credit card scam is designed specifically to take advantage of these good-hearted instincts and exploit our compassion for those that need help most. For instance, in natural disasters or other emergencies where donations are needed right away, such scammers become active.

The hotspot scam

Public Wi-Fi networks are a scary place since crooks could be monitoring these systems. But sometimes, the network itself is designed with one intention: trapping your personal data and credit card numbers.

Your smartphone or laptop connects to the Public Wi-Fi Hotspot, and you are prompted for credit card information. You need to understand that this is a scam because when they get hold of your sensitive data, it’s sent over email without any encryption meaning anyone on their network can read what was said! In other instances, though, where there is public internet access but FREE - this may seem innocent enough until scammers monitor every move while pretending not to be watching through separate hidden cameras installed that will stream 1080p quality video back to them.

The overcharge scam

The internet has made online shopping very convenient but beware of this new credit card scam. You get a call or text message telling you that you’re overcharged on recent purchases and need personal information like name, address, etc., for them to look into the matter further.

The good news is that identifying these scammers is very easy! They’ll ask questions to obtain some basic contact information from the victim, which gives them the access points if nothing else does work out. It is advised that you do not give up any sensitive data unless necessary.

The interest rate scam

Millions of people have fallen for this classic robocall scam. You answer a phone call, often from an unknown number, and are given the great news that they can negotiate significantly lower interest rates on their credit card balances if you want to cut down your monthly payment by thousands of dollars! 

The scam artists behind these calls know that you might be feeling desperate and want to make it easy for them. They will tell you they have inside connections with credit card companies, which is completely false as there are no such things! The whole thing has one goal- stealing personal information like social security numbers or dates of birth so people can steal your money from accounts tied into those numbers without any accountability whatsoever once the theft occurs (often overseas).

If they can maintain the level of your curiosity and you continue to listen to the call, the system will transfer your call to a live representative. This rep would seem to be extremely helpful and would skillfully extract your sensitive data and credit card details.

A variation on the scam is when they contact your credit card company and successfully lower rates. You might get hundreds or thousands of dollars charged for this service, but you can do it yourself at no cost! The only thing that third parties have over consumers in these cases are their connections with major banks - which may give them options like transferring balances to other cards with less expensive interest rates if yours has an excessively high APR.

If you think this post can help you identify credit card scams and are interested in reading similar articles, you can visit our website.

Dive even deeper, explore more of our Blog
Here at AnyCredit, we aim to make the most complex financial issues and topics easy to understand. In our articles, we will be making analysis, smart finance judgments, and honest conversations to help you make sense of your financial capacities and options.
Copyright © 2024 AnyCredit. All Rights Reserved.