Dormant Credit Card Accounts Open to Fraud - WBAY

Target 2 Consumer Alert

Dormant Credit Card Accounts Open to Fraud

Updated:

If you're no longer using a credit card, make sure you close down the account.  Dormant accounts are susceptible to fraud.

A group of contractors was arrested in credit scam case that cost consumers more than half a million dollars.

It all started with one bad credit card company employee.

"The credit card employee knew that these were dormant accounts which the businesses had lost track of, so she would go in manipulate the account," said Mona Hernandez, U.S. Postal Inspector.

The suspect would create new credit cards based on these dormant accounts and ask accomplices to use the cards.

"Multiple contractors were arrested in this case, many of them were recruited as the runners to purchase equipment that was used for the purposes of building materials," said Hernandez.

The contractors would buy construction equipment and either sell it or use it on their projects.

Postal inspectors caught the mastermind behind the scheme.

"She ended up confessing to compromising 30 to 50 dormant accounts," said Hernandez.

Hernandez has some important advice for consumers: "This is something that can affect anyone not just businesses. If they have accounts that are dormant or unused they have to get those closed."

Postal inspectors also recommend checking your credit report.  That can indicate any unused or dormant accounts in your name.

You can get a free copy of your credit report once every 12 months.  Click here for information on how to get your free copy.

 

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