Credit Card Protection Scams

Watch your credit cards. Thieves are calling unsuspecting area residents about credit card protection services, but the sales pitch uses false and misleading statements.

I'm Shirley Rooker for the Federal Trade Commission.

With dire warnings about computer hackers stealing credit card numbers and running up huge bills, the caller tried to convince Nancy to purchase credit card protection. The caller stated that Nancy would be liable for $50 for each purchase made on a stolen card, so that if 10 separate transactions occurred, Nancy would have to pay $500.

Well, that's not true. The maximum exposure for consumers is $50, no matter how many sales occur - if you report the card missing as soon as it is lost or stolen. 

In addition, the caller wanted Nancy's credit card number so the deal could be completed that evening. Warning bells sounded in Nancy's head. She hung up.

If you are interested in credit card protection, ask for written information. Don't be pressured into makin ga decision until you know more about the company.

I'm Shirley Rooker, director of WTOP radio's Call For Action for the Federal Trade Commission.

January 2002