Fishing Credit Card Scam: How to Avoid Financial Losses

Credit card fraudsters are constantly creating new ways to misappropriate your money. Have you ever received an e-mail asking you to click a link and verify your personal or financial information? These messages are called "phishing" because the sender is fishing for your data to commit a credit card fraud. If you receive such a message, don't follow the link in the e-mail message or provide any information. Otherwise, you may face with identity theft or unauthorized use of your credit cards.

Phishing scam involves the use of fraudulent emails, pop-up messages or copycat websites to trick you into revealing valuable personal or financial information - such as credit card numbers, your social security numbers or the login IDs and passwords you use when accessing your online financial services providers. The messages claim to be from a legitimate service (your credit card issuer, Ebay, Paypal, etc.) you deal with. You may be asked to "update," "verify," or "confirm" your information. Some phishing emails threaten that your accounts will be closed if you don't respond immediately. The messages redirect you to a website that looks like an official organization's site. However, the web site is a forgery and sends the information you enter back to fraudsters.

Phishing e-mails are becoming more difficult to detect even for technically savvy and attentive people. As a result, you can be fooled into giving out your financial or personal information in response to a phishing message or on a copycat website. If you have been tricked this way, you should understand that you can become a victim of identity theft or credit fraud.

So consider the following steps to avoid financial losses and minimize related problem.

If you have given out your credit card information:

•   Report the theft of your information to the credit card issuer. Do this as soon as you discover the problem because stolen credit card numbers are used for making numerous purchases within a very short period of time. Many credit companies have toll-free numbers and 24/7 customer services to deal with such emergencies.

•  Review your credit card bills carefully after the loss. If you see any unauthorized charges, send a letter to the credit card issuer describing each questionable charge.

•   Under federal laws, your maximum liability for unauthorized transactions is $50. If the loss involves your credit card number, but not the plastic itself, you are not responsible for unauthorized charges.

If you have given out your personal information:

•  Call to the three major credit bureaus: Experian, Equifax and TransUnion. Report the theft and request them to attach a fraud alert and a victim's statement on your file.

•   Ask for a free copy of your credit report to check it for suspicious activity. If you see inquiries stemming from the theft or unexplained debts, request the credit bureaus remove them.

•   Notify your banks about the theft of your personal information and ask them to flag your account.

•   Contact your local police department to file a criminal report.

Contact the Social Security Administration's Fraud Hotline and Department of Motor Vehicles to report the identity theft.

•   Make notes of the date and time of your call and the names of the persons you speak to regarding the incident.

•  Follow up each of your phone calls with a letter. Make copies of all correspondence.