Credit, Debt and Internet Scams

We are living in an age where disreputable companies and individuals do not think twice about pulling scams on an unsuspecting populous. These predators work coast to coast posing as legitimate business with the purpose of cheating honest people out of money. It is important that people be aware of what schemes are being carried out so they can prevent themselves from falling prey. Here are a few of the common telephone, e-mail and internet scams in practice today.

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Automatic Debt Scam. Also called an automatic debit scam. This telephone and mail scam entails soliciting individuals to claim a prize or a credit card regardless of credit. The primary objective is to get the person to read him the account information listed on the bottom of his check. The primary way to prevent becoming a victim of this scam is to refuse to give your checking account information out over the phone unless you are familiar with the company and you have agreed to make a purchase.

Offshore Unsecured Credit Card Scam. This scam claims to deliver an unsecured credit card regardless of your credit. All you need to do is send in an application fee and your card will be delivered. If you are being asked to send in an application fee for an unsecured credit card offshore it is probably a scam.

Credit Repair Scam. Quite often you will see this manifested as an internet scam. There are many companies who will claim to eliminate your negative credit information for a fee. Although there are legitimate steps that can be taken to move your credit in the right direction this always takes time. Negative marks can remain on your credit report for up to 7 years. Ultimately nothing (legally) can erase your bad credit in a short span of time.

Ponzi scheme. This is perhaps the most famous of all the telephone, e-mail and internet scams. Although the details of the scam often change the main idea remains the same. People are promised a tremendous return if they invest a certain amount of money. Some of the initial investors are actually payed sizeable returns to give the illusion that the program is legitimate. This generally has the effect of drawing additional investors. Be very skeptical when presented with an offer promising a great deal of money through a small investment.

These represent a small sampling of the telephone, e-mail and internet scams that are in operation today. Although debt scams have been around for decades the rise of e-mail and the internet have increased the frequency of this dubious activity from all corners of the globe. This does not mean that there are no longer any legitimate financial opportunities available. It does mean that you should do your research and make sure that you are dealing with a reputable company or organization before you part with your hard earned money.

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About the author:

Mark Carney is a professional consultant with First American Debt Consolidation and Loans, a debt consolidation service specializing in financial education, credit counseling, and debt management services nationwide.