$1 on your credit card can cost you thousands
Fraudulent low-dollar charges, left unchallenged, signal crooks to charge big
A new identity theft scheme puts a charge of just $1 on your credit card, in what is creatively known as the "one-dollar scam."
In this new scam, thieves buy hundreds of stolen credit card numbers and put a $1 charge on each of them. But the next step in the scam that really earns the crooks some cash.
Should you be one of the unlucky cardholders who ends up with a low-dollar charge, and you don't notice it, the next month the thieves may bill thousands of dollars of merchandise to your credit card.
The scam works because by revealing who doesn't read their credit card bill carefully in order to pick up on the initial $1 charge, the thieves target unaware consumers. The consumers who don't closely examine their monthly credit card statements are hit with thousands of dollars in charges they never approved.
To avoid becoming a victim of this scam, always consider every charge that appears on your monthly credit card statement. Should you find any questionable charges, do not hesitate to call your credit card company using the card issuer's phone number provided on the back of your card or on your bill.
By remaining a vigilant credit card user, you can prevent yourself from becoming the victim of credit card fraud.
Published: November 2, 2006
- 10 warning signs of ID theft – Data breach notices and bogus charges on your card are just two red flags. Here’s what to do if you suspect fraud ...
- Wal-Mart sues Visa over debit choice – Retailing giant says it wants to require PIN transactions on debit cards to reduce fraud and transaction costs ...
- Elder financial abuse: How families can cope – Besides harming the senior who's been targeted, elder financial abuse often leaves relatives with psychological and financial stress surrounding what's happened to their loved one ...