Free Credit Report Scams Are Flourishing |
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As per an amendment to the
Fair Credit Reporting Act (FCRA) that Congress passed last year, U.S. citizens are allowed to receive a copy of their free credit report once per year. But most people are not aware of the fact that everyone who promises to give you free credit report is not entitled to do so and is actually not delivering one to you. This plan is being rolled out slowly in order to avoid the system getting clogged and dubious. These free credit reports can be easily obtained through the official Website. Additional information is available at the FTC website. Obtaining a copy of your free credit report through these sites is easy and convenient and only requires your name, Social Security number, date of birth, and address. This way it seems fairly easy and straightforward, but there are many illegitimate companies that are on the look out of people seeking copies of their credit report. Scams are flourishing in the form of such companies and the consumers need to be careful of them. Many of such illegal companies have established Websites with addresses that are very similar to the address of the official site. These sites promise a free credit report, but they are actually interested in misusing your personal information. In addition to stealing your name, Social Security number and address, these sites may also tell you that a credit card number is necessary to verify your identification. With this information, the people operating these sites can actually steal your identity. There are many other Websites that promise free credit reports, but only a few of them actually provide these reports for free. These companies indulge in credit report fraud to a large extent. These sites promise a free credit report, but require a credit card for identification purposes. Customers fill out the form and receive a copy of the credit report but also receive a charge on their credit card. Other unscrupulous companies take a more direct approach by sending spam e-mail that promises to provide free credit reports. These spam messages are actually targeted at obtaining your personal information. The Federal Trade Commission (FTC), the nation's consumer protection agency, urges you to take the following precautions when visiting sites or responding to email that offer credit reports: If you get an email offering a free credit report, don't reply or click on the link in the email. Instead, contact the company cited in the email using a telephone number or Web site address you think is genuine. Check for misspellings and grammatical errors. For instance, an area code that doesn't match an address can easily inform that the site is a scam. Look at the company's Web address: is it a real company's address or it is a misspelled version of a legitimate company's Web address. Exit from any Web site that asks for unnecessary personal information, like a Personal Identification Number (PIN) for your bank account, the three-digit code on the back of your credit card, or your passport number and issuing country. Legitimate sites that provide free credit report don't ask for this information. All legitimate sites that provide free credit report will want to verify who you are, and will respond to an electronic request for a credit report by asking you for an additional piece of information. If a site does not ask a follow-up question, the site is almost certainly a fake. Use only secure Web sites. Look for the lock icon on the browser's status bar, and the phrase "https" in the URL address for a Web site, to be sure your information is secure during transmission. All real sites are secure. Watch your mailbox and credit card statements: If you've responded to a bogus site, you may never receive the free credit report. If you paid one of these sites for a credit report, your credit card may never be charged. If you find that you have unauthorized charges, contact your financial institutions and credit card issuers immediately. You have to be aware that you can receive a copy of your credit report, for free, once a year. But at the same time, know that not everyone who is promising you a free credit report intends to provide you with one. You should always contact the authorized government approved agencies for a copy of your free credit report. |
