Don't Fall For Newest Credit Card Scams

The "You're Approved!" Scam

This scam preys on those with less-than-perfect credit. You receive a call and the caller tells you you're approved for a credit card with a credit limit of up to $10,000. The caller goes into the details and terms of the card and at the end of the conversation says they have to "verify" your checking account. This, my friends, is your red flag.

Never, no matter what, provide up-front checking account information or pay in advance when applying for a credit card. If you do, you're going to end up as the victim of one of the most common credit card scams out there.

The only time you should ever provide money to a credit card company is when you're paying your monthly statement or when you've open a secured card account. Any other up-front money requests are a gimmick, and chances of you ever seeing that credit card are slim to none.

The "I'm Protecting You From Fraud" Scam

This one really is a tricky scam and if the people who devised it weren't such disgusting lowlifes, I'd have to admire their savvy. This is how it works:

You get a call from the fraud department of your credit card company (or so you think). The person on the phone tells you there have been suspicious charges on your credit card. They don't ask for your address or your phone number. In fact, they read that information to you. What they do ask for is the 3-digit code on the back of your card to "verify you are in possession of the card," or so they say.

Unfortunately, the caller is a con artist and while you haven't yet been the victim of a scam, you will be the minute you give them the 3-digit code on the back of your card. These creeps got your credit card information somewhere, but they're missing one of the key pieces of information they need -- your 3-digit code.

Don't ever give anyone any financial information over the phone, even if it seems harmless and innocent. If you do receive a call from a financial institution asking for information, tell them you'll call them back at a published number. Only then can you be sure the person on the phone is really who they say they are.

Remember, while we'd all like to think the world is a safe place and that people are generally good, but the fact remains that there are some bad apples in the bunch. These two credit card scams are a prime example and reminder to keep a vigilant watch for scammers.