Be Careful To Avoid This Credit Card Scam

I got a warning about a credit card scam that is doing the rounds this morning, so thought I would post it here as it is very good advice. Here's the email word for word...

This one is pretty slick since they provide Y O U with all the information,
except the one piece they want.Note, the callers do not ask for your card
number; they already have it. This information is worth reading. By understanding how the VISA & MasterCard Telephone Credit Card Scam works, you'll be better prepared to protect yourself.

The scam works like this: Person calling says, "This is (name), and I'm calling from the Security and Fraud Department at VISA. My badge number is 12460. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. This would be on your VISA card which was issued by (name of bank) did you purchase an Anti-Telemarketing Device for £497.99 from a Marketing company based in London?" When you say "No", the caller continues with,
"Then we will be issuing a credit to your account. This is a company we
have been watching and the charges range from £297 to £497, just under the £500
purchase pattern that flags most cards. Before your next statement, the
credit will be sent to (gives you your address), is that correct?" You say
"yes". The caller continues - "I will be starting a fraud investigation.
If you have any questions, you should call the 0800 number listed on the
back of your card (0800-VISA) and ask for Security. You will need to refer to
this Control Number. The caller then gives you a 6 digit number. "Do
you need me to read it again?"

Here's the IMPORTANT part on how the scam works:

The caller then says, "I need to verify you are in possession of your card."
He'll ask you to "turn your card over and look for some numbers."
There are 7 numbers; the first 4 are part of your card number, the next 3
are the security numbers that verify you are the possessor of the card.
These are the numbers you sometimes use to make Internet purchases to
prove you have the card. The caller will ask you to read the 3 numbers to
him. After you tell the caller the 3 numbers, he'll say, "That is correct,
I just needed to verify that the card has not been lost or stolen, and that you
still have your card. Do you have any other questions?" After you
say, "No," the caller then thanks you and states, "Don't hesitate to call back
if you do", and hangs up.

You actually say very little, and they never ask for or tell you the Card number. But after we were called on Wednesday, we called back within 20 minutes to ask a question. Are we glad we did!

The REAL VISA Security Department told us it was a scam and in the last 15
minutes a new purchase of £497.99 was charged to our card. Long story - short -
we made a real fraud report and closed the VISA account. VISA is reissuing
us a new number. What the scammers want is the 3-digit PIN number on the
back of the card. Don't give it to them. Instead, tell them you'll
call VISA or MasterCard directly for verification of their conversation.

The real VISA told us that they will never ask for anything on the card as
they already know the information since they issued the card! If you give
the scammers your 3 Digit PIN Number, you think you're receiving a credit.
However, by the time you get your statement you'll see charges for
purchases you didn't make, and by then it's almost too late and/or more
difficult to actually file a fraud report.

What makes this more remarkable is that on Thursday, I got a call from a "Jason Richardson of MasterCard" with a word-for-word repeat of the VISA scam. This time I didn't let him finish. I hung up! We filed a police report, as instructed by VISA. The police said they are taking several of these reports daily! They
also urged us to tell everybody we know that this scam is happening .

Secret To Getting Out Of Credit Card Debt

I don't really think it's much of a secret, but I found this article, liked it, and thought it was worth passing on. See what you think...

The Secret To Credit Card Debt Relief

Does this sound familiar? You have been living the good life, buying all your favourite clothes labels, fancy gadgets and maybe even treated yourself to a super holiday? Well unless you are great at planning your finances you are probably amongst the many millions of Britains who are badly in need of credit card debt relief.

One of the main culprits that lead to debt is that little piece of plastic sitting in your
purse or wallet. It just makes it so easy to make that impulse buy as you don't actually see cold hard cash changing hands so it doesn't feel so bad when you make that purchase.

So what happens when you eventually max out your credit card? Another card, and another and another. And before you know it you have 3, 4 maybe 5+ credit cards all maxed out. And nowadays with lenders keener than ever to give you more money those little pieces of plastic could leave you £10,000's in debt.

So, what happens when you find yourself deep in credit card debt? Well you need to consider your options and believe me there is loads of help at hand.

Your options include professional debt help if your debts are over £15,000. One of the lesser known secrets in debt help options these days is an IVA. An IVA (Individual Voluntary Agreement) is a method whereby the debt specialist will discuss all your debts with each of your lenders. From this an agreement is made as to how much of the debt you can repay and all parties concerned then sign the agreement. By choosing an IVA you could potentially end up paying as little as 25% of your original debts back to your creditors. Although this may sound like a good idea there are some drawbacks in that your credit rating will be severely affected during the debt payback period, typically 5 years, and beyond.

Another popular option is to take out a Debt Consolidation loan. One of the main benefits to Consolidation Loans is that you can pay back all your credit card debts so that you can have just a single low monthly payment to make to one company rather than to lots of credit card companies. This may sound like a good idea but lots of Consolidation Loans are secured on your property which means that if you don't keep up with payments then you could lose your home, similar to what would happen if you didn't pay your mortgage.

Whichever option you choose will be down to your exact circumstances and how much debt you have got yourself into. As a quick guide you should consider an IVA if you're over £15,000 in debt and a Debt Consolidation Loan if your debts are less than £15,000.

So, the secret to credit card debt relief? Taking action today to sort out your debts once and for all. All it takes is either a short phone call or fill in an online form and you could be well on your way to a debt free life in no time.

About the Author: Andrea Simpson is an online financial expert who specialises in credit card debt relief.

I thought it was a good article anyway.

Frightening Debt Statistic

Just a quick one today...

I heard on the radio news yesterday that two million (2,000,000!!!!!) people in the UK alone are in so much debt that they will never be able to repay that debt in their own lifetime, save for winning the lottery or inheriting a fortune.

That is a very frightening debt statistic and says a lot about current buy now pay later lifestyles. I think that maybe we all need to take a step back and look at our parents and grandparents and see how they lived. Do you really need a 42 inch plasma TV to give meaning to your life?