Bogus Balance Transfer Offers: One of the
Latest Identity Theft Scams
Recently, many consumers have had steep
increases in their credit card interest rates due to the
struggling economy. This isn't just happening to people who
default on their accounts. It is also happening to people with
excellent credit histories. Because of this, there has been a
significant increase in the number of people looking to
transfer their credit card balances to get lower interest
rates. If you receive an attractive balance transfer offer by
email or by phone, beware!
A New Opportunity for Identity
Theft
Identity thieves know that people who have
suddenly been hit with higher interest rates will be
interested in balance transfer offers. They are sending emails
offering people 0% balance transfers, high credit limits, no
balance transfer fees and instant approvals. Like other
phishing scams, the emails have links directing the victims to
spoof websites. The spoof websites look like those of well
known credit card companies and even have company logos. On
the websites, the victims are prompted to enter personal and
financial information. The identity thieves use the
information to charge up the victims'accounts and to open new
accounts in the victims' names.
A Wealth of Information for Identity
Thieves
The balance transfer scam is especially
lucrative for identity thieves because of the vast amount of
information they receive. The victims supply their credit card
numbers, PIN numbers, full names, addresses, social security
numbers, birthdates, occupations, employers, length of
employment, length of residence, personal references, income
and assets. Some even ask for a small transaction fee by EFT
so they can get bank account numbers in addition to credit
card numbers. Others offer a 0% cash advance that is only
available the day the victim receives the email. Identity
thieves often use tactics that will get their victims to act
quickly without thinking.
Emails: The Main Source of Identity
Theft
The majority of phishing scams are initiated
by incoming email solicitations. These emails never have
working telephone numbers. Most of them originate from outside
the United States, so it's virtually impossible for the
scammers to be prosecuted. The best protection against the
balance transfer scam and other phishing schemes is to never
give personal or financial information in response to an
email. |
