| Nothing is worse than finding out that someone has | | | | advance fee loan! You pay an advance fee in |
| stolen your identity and maxed out your credit. In this | | | | exchange for a loan. This scam targets people with |
| article we will discuss the most common scams to | | | | poor credit ratings. There are two ways these crooks |
| watch out for and how to arm yourself so this does | | | | make money: 900 numbers you have to call to get the |
| not happen to you. | | | | information and through the actual fee for the loan. By |
| The worst of the scammers are the ones posing as | | | | the way, you will never see the actual loan.o Anytime |
| credit repair companies. These guys are not looking to | | | | someone wants to access your credit or personal |
| repair your credit, they just want to take the money | | | | information without proper authorization. With identity |
| and run. Be wary when a credit repair company tells | | | | theft on the rise, banks are taking special steps to |
| you that:o All you have to do is get and EIN (employer | | | | confirm your identity. They have "secret" questions |
| identification number) and you can wipe your credit | | | | and code words to help to determine your identity. If |
| record clean! This is possible to do; however, it is | | | | you are at all suspicious of someone claiming to be |
| HIGHLY illegal. This is not a civil matter. It is credit fraud | | | | from your bank or other credit agency, take their |
| and a criminal matter. EINs exist for companies to use | | | | name and number and tell them you have an |
| ONLY. Any individual claiming an EIN is committing a | | | | emergency and will call right back. Then call the bank |
| felony. Worse yet, as long as the file has the same | | | | directly to find out if that person really does work for |
| personal information as your old one (i.e. name, | | | | the bank or agency. If so, contact them directly. If not, |
| address, social security number, etc.) the information | | | | you just avoided a very costly scam. |
| will eventually migrate to your new file. Be careful.o File | | | | In order to avoid these scams, you need to take steps |
| Segregation. This is closely related to (in fact, it | | | | to protect yourself. The police can only do so much. |
| includes) the EIN scam. But it also covers other ground. | | | | The rest is up to you. Here are some tips:o Learn, |
| Not only do they encourage you to get an EIN number, | | | | learn and learn some more. It is very important to keep |
| they also offer to help you attain new taxpayer | | | | up with the latest credit card scams and know them |
| identification to hide your true credit score. This also is | | | | when you see them. A quick check with a site like |
| HIGHLY illegal. If you have been a victim, whatever | | | | Snopes, will help avoid a lot of stress and worry.o |
| you do, do not hide it. When the truth comes out, and it | | | | Take steps to protect yourself by shredding |
| will, you will look like a criminal. When you realize what | | | | confidential information. You can get a personal |
| has happened, contact the Federal Trade Commission | | | | shredder for about fifty dollars at any office supply |
| and report the fraud. Protect yourself.o Many | | | | store.o Be suspicious. Think things through. Whenever |
| companies will offer over-the-phone advice with no | | | | someone it proposing credit, a method of increasing |
| obligation to meet! Many companies offer | | | | your credit, or a means of fixing your credit, ask |
| over-the-phone advice, after you call their 900 number, | | | | yourself these questions. |
| which bills you by the minute. The longer they keep | | | | 1. Who is this person/company? Do I trust them? Have |
| you on the phone, the better for them. They talk fast | | | | I looked into their history? |
| and are very unclear so you have to keep asking | | | | 2. Has this person/company had any legal problem? |
| questions for clarification. This could be very costly for | | | | 3. Did I contact them or did they seek me out? |
| your FREE information.o Your bank telephones and | | | | 4. Do I know anyone who has successfully used their |
| asks for the three-digit security number on the reverse | | | | service? |
| of your card. In this scam, the thief already has access | | | | 5. Is there any reason I should pay these people? Are |
| to some of your personal information. Enough to put | | | | they really doing anything that I could not do on my |
| you at ease. He may correctly rattle off your name, | | | | own? |
| address, and some banking information. He will claim to | | | | The key is to find a balance between healthy suspicion |
| be from your bank and ask for your three-digit | | | | and paranoia. Your credit history is an integral part of |
| number. At that point, even though you have not given | | | | your financial history and you should be very careful |
| him your actual credit card number, he has what he | | | | who you trust with your future. Always be aware and |
| needs to gain access to credit in your name. By then, it | | | | you will not end up at the costly end of a scam. |
| is too late. Don't give it out.o Everyone qualifies for an | | | | |