The Latest Scams Circulating the Consumer World. Be warned. Be informed.

December 2006

Credit Card Switch

Credit card scammers are continually coming up with new ideas to gain access to your credit cards. This scam would most severely impact a victim that doesn t use his or her credit card frequently during the month. Keep those credit cards close at hand, especially during the next month as you do your Christmas shopping. As you read on, you ll see that many small purchases didn t trigger a fraud alert at this victim s credit card company.

A man went to the local gym and placed his belongings in the locker. After the workout and a shower, he came out, saw the locker open, and thought to himself, "Funny, I thought I locked the locker. Hmmmmm." He dressed and just flipped the wallet to make sure all was in order. Everything looked okay - all cards were in place.

A few weeks later his credit card bill came - a whooping bill of $14,000! He called the credit card company and explained to them, saying that he did not make the transactions. Customer care personnel verified that there was no mistake in the system and asked if his card had been stolen.

"No," he said, but then took out his wallet, pulled out the credit card, and yep - you guessed it - a switch had been made. An expired similar credit card from the same bank was in the wallet. The thief broke into his locker at the gym and switched cards.

The credit card issuer said since he did not report the card missing earlier, he would have to pay the amount owed to them. How much did he have to pay for items he did not buy? $9,000! Why were there no calls made to verify the amount swiped? Small amounts rarely trigger a "warning bell" with some credit card companies. It just so happens that all the small amounts added up to big one!

Play It Safe

• If you re not going to use the card, leave it at home.
• Double-check your cards periodically…just to make sure they are yours!
• Check your credit card balance online instead of waiting for the monthly statement.