Beware of credit card fraud! Wise Bread gives advice on how to stay protected from the latest credit card scams.
The Federal government is warning consumers about a secured credit card scam run by a sham bank called AmTrade International Bank. Banking regulators released an alert warning that AmTrade,
"...is involved in a scheme that involves soliciting consumers for semi-secured credit cards through the U.S. mail. Potential victims receive solicitations and program agreements, which may mention that Credit One Bank, N.A., is connected with the card agreement. Credit One Bank, N.A., has no connection to this entity."
RELATED: What Are Secured Credit Cards?
The fraudsters target consumers with poor credit and offer semi-secured credit cards as a way of repairing their credit. The offers arrive via mail and look like many other such secured credit card solicitations. AmTrade's letter asks victims to send cash deposits of $500 or $900 to secure credit limits of $1,500 or $3,600, respectively. The checks are deposited, but the secured Visa card never arrives. (If you're wondering if you've received one of these offers, take a look at the images at the end of this piece.)