Identity theft and new credit card scheme

Many identity theft schemes have to do with the use of the Internet; phishing attempts probably pop up in your electronic mail inbox every single day. The problem of identity theft is a growing one and identity thieves are coming up with new schemes every day to rob consumers of their personal information. A popular identity theft scheme that threatens consumers involves credit card information and an old fashioned telephone.

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Acquiring a victim's Social Security number allows the crook to do a lot of damage, as she can pretend to be you for all manner of transactions, including taking out a home loan. Although identity theft commonly involves stealing the Social Security number or driver's license number of the victim, many crimes steal only credit card numbers. The potential for financial harm may not be quite as great with the loss of a credit card number as it is with a Social Security number, but you could easily lose ten to twenty thousand dollars through the loss of your credit card number.

In a popular identity or credit theft scam, the criminals call their would-be victims and identify themselves as customer service agents of the bank that provided the credit card. They say that they are calling to inform them that their credit card has been used to make an odd purchase. The item and the sales amount are not known to the victim, who informs the caller that they didn't make the purchase. The caller insists 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.
 

If a criminal has possession of the CVC2 number, they can use the card at any one of thousands of Internet businesses to acquire anything they like. The CVC2 number was added to credit cards to provide additional verification in case of a Web or telephone transaction. Many Internet retailers ask for the code during the checkout process. This credit card trick is rising in popularity, and many consumers are falling victim to it.

How can you avoid becoming a victim of this credit card scam? You will only be held liable for $50 in unauthorized charges if you call your bank, but if you do not report the crime, you are responsible for everything the criminal buys. You can avoid becoming a victim of this credit card crime by refusing to give out personal information to strangers who call you on the phone. If you find that you have had your card or your account number stolen, you should immediately report it to the bank. 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. Your bank doesn't need your CVC2 number, as they already have it.