Fake credit reporting companies are becoming a major problem not just in the United States, but all over the world. These credit reporting companies are taking advantage of your good faith and good credit and using it against you though a fairly elaborate scam.
The main method in which they attract consumers is through a method called phishing. Through phishing, these companies are essentially doing what the name infers, they are ‘fishing’ for your information. While they realize that most consumers aren’t going to respond, that know that the odds are that some people will. Phishing is a relatively simple process. First, they use a program to harvest email addresses off of the internet, or they use a computer to generate possible username and email address possibilities. After they have create a large database of email addresses with which to use, they then begin the process of creating an elaborate email based off of the promotional emails that REAL reporting agencies use to market their products to consumers. When you check your email, it appears as if you are reading something from a legitimate company. If you are interesting in a reporting product, you might think to yourself, ‘how convenient’, but if you go to the site link and register at their extremely professional looking website, you’ll be setting yourself up quickly for failure.
Once at the website, and once your information is submitted, conveniently nothing happens. You’ll assume that their website isn’t working and most likely you’ll just forget about it or email them. However, while it looks as if the website didn’t do anything after you submitted your information, in reality it did and just reloaded the page with that same information in order to give the appearance that you didn’t actually submit your information.
After some time you’ll have forgotten all about that company, and suddenly charges are going to start appearing on your credit report. You had given that company all of your personal information, including your mom’s maiden name, which allowed them to apply for credit cards, get loans, you name it. They are now masquerading as you and making purchases with your information.
If you already have a credit report, you may see this, if you don’t, you are completely blind to what is happening, and could be in for a massive mess of a surprise when you finally do find out.
If you want more information about phishing, I recommend checking out the Federal Trade Commission’s website on the topic, directly relating to fake credit reporting companies :
http://www.ftc.gov/bcp/conline/pubs/alerts/fakealrt.htm
And some companies that are LEGIT credit reporting companies :
http://www.myfico.com
http://www.experian.com
If you are smart, you can easily avoid being caught in a phishing scam. Just remember, it is important to know who you are doing business with. Check their contact information, research the company, do whatever you need to do to find out more about the company before giving them all your personal indentifying information.