It's a Credit-Card Scam. Don't Fall for It!

(MoneyWatch)  Heather is stalking me -- and probably you too. She's part of a credit card scam by phone. And you could get snookered if you're not careful.

For months, Heather left messages saying this was her absolute "last" courtesy call to lower my credit card rates. One day when she caught me live, I hit "1" (as instructed by her recorded voice) and talked to "Joy," who said she was with "Account Services Inc." in San Francisco. When I asked how she could lower my rates, Joy replied: "We make our money from the interest and finance charges we save you." After I asked how -- and refused to give my credit card number until she explained -- the phone went dead.

Reality check
There is no Account Services Inc. registered with the California Secretary of State. (You can check any business that says they're licensed on the state's web site.)

Scam check
Heather, Joy and their friend Cathy get around. Reports about this credit card scam are all over the web, indicating that people like them have been calling from Atlanta, Orlando, Los Angeles, London, Minnesota and Missouri. Several state consumer affairs offices have put out warnings.

What's their game? Credit card identity theft. To "verify" that you qualify for the low rates, you need to give Heather or Joy (or one of their associates) your credit card numbers and balances. If you seem really gullible, you'll be asked for your Social Security number too.

The one sucker out of 100 who gives out the info soon finds her credit cards charged to the hilt and new cards opened in her name.

From the web posts and increasing warnings, the game appears to be gaining steam--like dozens of other financial cons--largely because an increasing number of consumers are desperate.
A better solution
If you are drowning in debt, find a non-profit credit counseling service. Sit down with a live counselor and work out a budget and repayment plan. If you need a break on the interest rate--or even the outstanding balance--non-profit counseling services can handle that too.

You can find legitimate credit counselors in your area through the National Foundation for Consumer Credit or the Association of Independent Consumer Credit Counseling Agencies. Both have a "find a counselor" button at the top left of their home pages. And remember that you should never give your personal financial details to someone who phones you. If a caller claims to be from your bank, tell her you'll call back (to the number on your bank statement) before divulging your Social Security, account numbers, address or date of birth.

Image via Flickr user jepoirrier, CC 2.0

[tuckbodi]

Haha, I got that same phone call and here's what I did when I got transferred..

Joy: Hello, who am I speaking to?
Me: Okay, you got that trace going. Great! I got video on them too!
Joy: <click>
Joy: <craps pants>
Me: Can't stop laughing!