Credit Card Debt Management

What does a credit card thief do when all the finer tricks of the trade have been uncovered? Invent new ones! Without condoning this line of income-making, you’ve got to give the thieves an “A” for creativity … or maybe not. It probably depends on whether you’ve ever been a victim of credit card theft.

Banks have become wise to the standard trick thieves pull as soon as they get a credit card. It might be small, random gas purchases or it might be a penny charge. These have been well-established as telltale signs of credit card theft, as it enables thieves to determine whether or not a card is still active. This is important because active credit cards sell for higher values on the black market, according to CNET News.

But now, thieves have upped their game. To determine whether a newly stolen card is still active, thieves have taken to making small charitable donations with the card. If it’s rejected, then they’ll know it’s going to sell for less on the black market. Banks and consumers, meanwhile, are less likely to pick up on the fraud quickly because charitable donations are quite normal. A consumer might assume a spouse made the donation and might not even find out about it until the thank you note arrives in the mail.

The best line of defense - sign up for identity theft protection and credit monitoring, or check your credit card statements yourself every week or so. This is easy enough to do, as most companies provide convenient online account access. A credit monitoring company is more thorough because it can spot when your name has been used to open accounts you didn’t even know existed. It’s important to be proactive in these matters because thieves won’t be “generous” for long. In no time, they’ll have a new set of golf clubs, a mani-pedi and tickets on a world-class cruise — all courtesy of you and your incredible “generosity.”