Card Loss Protection Offers:
the Real Steal
got a call from a woman who said I need credit card loss protection
insurance. I thought there was a law that limited my liability to
$50 for unauthorized charges. But she said the law had changed and
that now, people are liable for all unauthorized charges on their
account. Is that true?"
buy the pitch - and don't buy the "loss protection" insurance.
Telephone scam artists are lying to get people to buy worthless
credit card loss protection and insurance programs. If you didn't
authorize a charge, don't pay it. Follow your credit card issuer's
procedures for disputing charges you haven't authorized. According
to the Federal Trade Commission, your liability for unauthorized
charges is limited to $50.
credit card loss protection offers are popular among fraudulent
promoters who are trying to exploit consumers' uncertainty. As a
result, the goverment is cautioning consumers to avoid doing business
with callers who claim that:
liable for more than $50 in unauthorized charges on your credit
you need credit card loss protection because computer hackers can
access your credit card number and charge thousands of dollars to
a computer bug could make it easy for thieves to place unauthorized
charges on your credit card account; and
they're from "the security department" and want to activate
the protection feature on your credit card.
Consumers are advised not to give out personal information - including
their credit card or bank account numbers - over the phone or online
unless they are familiar with the business that's asking for it.
Scam artists can use your personal information to commit fraud,
such as identity theft. That's where someone uses some piece of
your personal information, such as your credit card account number,
Social Security number, mother's maiden name, or birth date, without
your knowledge or permission to commit fraud or theft. An all-too-common
example is when an identity thief uses your personal information
to open a credit card account in your name.