He was also told that accepting the credit card would help him build his credit up again. That was certainly a relief to Alan because his credit rating is poor and he is financially strapped right now. As is the case with many other victims, the company took money out of Alan's bank account but Alan never got a credit card. Scams of this type, called advance fee credit card scams, are on the rise. Con artists target individuals who have bad credit and or who have been unable to obtain credit in the past.
Some scammers actually purchase credit card applications filled out by their potential victims.
The companies that generate the credit card applications are not affiliated with the major credit card companies but are often lead brokers who create bogus credit card applications primarily to sell the names and information of the people who fill them out. When contacted by telephone, victims fall for the promises of high credit limits and the opportunity to restore poor credit. Consumers often get nothing for their money or end up receiving a card that is only good for sales from a catalog, which the telemarketing company provides. A credit card with such limited use is certainly not the offer, which entices victims to provide their bank account information over the telephone. Consumers should beware that it is unusual for major credit card companies to offer credit cards for a fee.