Typically, the caller tells the victim that, due to a change in credit laws, people can now be held liable for all unauthorized charges on their account. Then comes the pitch for the warm-fuzzy feeling of being "insured" against such losses.
The law has not changed. If you didn't authorize a charge on your credit card, just don't pay it. Follow your credit card company's procedures for disputing charges you haven't authorized. According to the Federal Trade Commission (FTC), your liability for unauthorized charges is limited to $50.
The FTC says worthless credit card loss protection offers are popular among fraudulent promoters who are trying to exploit consumers' uncertainty. As a result, the FTC cautions consumers to avoid doing business with callers who claim that:
The FTC advises consumers not to give out personal information - including their credit card or bank account numbers - over the phone or online unless they are familiar with the business that's asking for it. Scam artists can use your personal information to commit fraud, such as identity theft. That's where someone uses some piece of your personal information, such as your credit card account number, Social Security number, mother's maiden name, or birth date, without your knowledge or permission to commit fraud or theft. An all-too-common example is when an identity thief uses your personal information to open a credit card account in your name.
For More Information To learn more about protecting yourself against credit card fraud and identity theft, call the FTC toll-free, 1-877-FTC-HELP (1-877-382-4357).
[Source: Federal Trade Commission]
