As we have mentioned several times before, once you exit bankruptcy, it will only be a few short years before you are able to get unsecured credit. But with unsecured credit come risks and responsibilities. We've talked about guarding your credit from bad spending and budgeting habits; but what about the predators out there who steal credit cards to make their living?
Below are a few credit card scams that ever post-bankruptcy debtor must avoid:
- Cell phones and digital cameras have become smaller and even more capable of taking very clear photos. Many scammers, some of them working in retail where they can have easy access to your credit card, will steal credit card information by taking a photograph of the back and front of your card. When using your credit card at any store make sure that you don't allow the clerk to leave the area with your credit card and make sure you keep sight of your credit card at all times.
- Other scammers are using fake credit cards to increase the time between when they steal your credit card and you report it missing. How it works? Scammers take your credit card and then replace it with a fake that looks like your credit card while they take off with the real thing and charge up large amounts of debt. This can be particularly damaging for a post-bankruptcy debtor who is trying to rebuild his credit because credit cards only allow a certain window of time for a victim to report their credit card lost or stolen. If they don't report the credit card lost/stolen in that time frame they could liable for the charges.
- Finally, fake fraud alert calls are on the rise. This scam involves the con-artist calling the victim and saying that they are calling from the fraud department of the credit card company. Once the con gets the victim on the phone they ask for the three (or four) digit card verification number on the back of the credit card. Remember, no credit card company will ask for that.