- Credit Card Loss Protection
They're the Real Steal
"A man told me that
the Y2K bug makes it easier for thieves to get my credit card number
and charge thousands of dollars on my account. He said that I'd be
responsible for paying the bills, even though I didn't okay the
charges. He wanted to sell me credit card loss protection insurance
to cover the unauthorized charges, and said that the fee for the
insurance could be billed to my credit card. Should I buy it?"
"I 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
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.
The FTC says worthless credit card loss
protection offers are becoming more common as the millennium approaches
and fraudulent promoters try to exploit consumer uncertainty. As a result,
the agency is cautioning consumers to avoid doing business with callers
who claim that:
- you are liable for more than $50 in
unauthorized charges on your credit card account.
- you need credit card loss protection
because computer hackers can access your credit card number and charge
thousands of dollars to your account.
- the Y2K bug will make it easy for
thieves to place unauthorized charges on your credit card account.
- they're from "the security department"
and want to activate the protection feature on your credit card.
The FTC advises consumers not to give out
personal information - including their credit card or bank account numbers
- over the phone or online for any product unless they are familiar with
the business and have initiated the contact. Scam artists can use your
personal information to commit fraud.