Technology has made life a lot easier. It is now possible to get almost everything from the comfort of your own home either via phone or by going online. You can even apply for online loans and the money will be delivered straight to your bank account. Convenience has its downfalls; unscrupulous people can steal personal information and use it in corrupt ways. There are many credit fraud schemes that have come into light in recent times. It is best to learn about them so that you can avoid their pitfalls. Some of the common credit fraud schemes are-
- Identity fraud - Criminals can steal your identity by getting necessary personal details by picking your wallet or by posing as bank employees or other persons and then getting all details. These people will then use these details to procure a loan in your name and before you know will run away with the money.
- Credit card fraud - Criminals take your credit card details via various means and then use it for online purchases. People have been shocked to see huge credit card bills for the purchases they have never made.
- File segregation - Predatory companies or people advertise and promise to repair poor credit report of the borrowers. They will ask for a hefty fee to sign up the program. The company will then suggest you fraudulent practices such as getting a new EIN (employee identification number) and using it in place of social security number. They will also ask desperate people to hide credit information of the past. These are illegal activities and individuals could be prosecuted by law.
How to avoid credit fraud schemes?
- Don't give any personal details like credit card numbers, bank account numbers, over the phone or via mail.
- Verify the people who visit you as company officials before discussing anything with them.
- Don't fall for any quick-fix credit repair or loan solutions.
- Always be alert while using a credit card online; especially if you are in internet cafes.
- Destroy all important documents before throwing them into the trash.
- Don't respond to spam mails from unknown people.
Follow the above tips and be vigilant to prevent yourself from getting duped by fraudsters.