Credit Card Loss Protection Scams
There is a scam being run where someone calls and tells you that the "law has changed" and you are no longer protected against fraudulent use of your credit card, ATM, or debit card. The caller then pressures you to buy Credit Card Loss Protection Insurance. If you get that call, tell them "Bull Hockey", and hang up!
You do not kneed "loss protection" insurance. Telephone scammers are peddling this worthless paper for up to $50, or more, per year! There has been no change in the law and you are still protected, just like you always were.
According to the U.S. Federal Trade Commission, worthless credit card loss protection offers are popular among fraudulent promoters who are trying to exploit consumers' uncertainty. As a result, the agency is cautioning consumers to avoid doing business with callers who claim that:
The FTC further advises you not to give out personal information, including your credit card or bank account numbers, to anyone unless you are 100% sure that you are dealing with a legitimate organization.
Thieves can ruin your financial life if they are given access to your credit card account numbers, 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 and then runs the card through the roof!
As a rule of thumb, never give you personal information to anyone who calls you without you expecting them to call. Even if they claim to be from your bank, or credit card issuer, get their name and number and call them back. Be extra cautious. Don't call them at the number that they gave you, call the actual number of the bank or company, as listed in the phone book, or directory assistance, and ask for the person who called you. If no one knows who they are, ask to speak to a supervisor. Explain what you were told and let the supervisor work out what's really going on.
You should never accept anything you hear on the phone as true. It's very easy to find out what the law really says, and to verify any odd-sounding claim, by visiting these three web sites:
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