Avoiding the Dollar Scam

An investigation has reported that while the scam has peaked in popularity, it still exists among the western world in credit card fraud.

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Nowadays, if you have any sort of shady transaction made on your account, you can quickly dispute the charge with your bank and have it cleared in a matter of days (provided you act as soon as possible).
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That’s why fraudsters are attempting to stay one step ahead of contemporary security with a newly-angled approach to credit card scams.
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What is the ‘Dollar Scam’?

Typically, thieves will go on a rapid spending binge and dispose of a credit card and it’s details as fast as possible to avoid being traced. The more time it takes a consumer to react to a fraudulent charge, the more chance they have at getting away with it.
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When a certain amount of credit card details have been swiped, the first step is to charge an inconcpicious and small amount to the card ($1-$3). From this point, two possible events may occur:

• The vigilant consumer will sniff out the charge on their recent transactions or statement and dispute it. Since it is such a small charge, the bank shouldn’t treat it as fraud, and will pass it off as an accident or false charge.
• A consumer who isn’t up to date with their credit may completely miss it, or disregard it.
• The thief in this case will likely have access to your recent statements or transactions. For those who didn’t dispute the charge, the theif will assume that they aren’t as active as others in managing their statements and will proceed in their fraudulent charges.

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Even if you missed the initial ‘caution’ charge, you can still act quickly and dispute the damaging fraudulent charge if you act quickly. The scam simply filters out those who take slower or no action at all in defending themselves.
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Who’s at Risk?

Once your details are taken by any regular method, for example:

• Phishing
• Skimming
• Direct card theft without your notice

Then you become at risk to any sort of credit card fraud. The ‘dollar’  scam is simply a different and unique approach.
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Nearly all credit card banks have some form of consumer protection and fraud security. A popular feature of ANZ cards is the ANZ ‘Secure Falcon’ which also alerts you instantly when any suspicious transactions or activity is made.

While security updates will help, it’s ultimately your responsibility to stay on top of your credit transactions to stay safe and secure.

Comparison of our Top Credit Card Offers

		Interest Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual Fee	Cash Advance Rate (p.a.)
Citibank Clear Platinum Card	A low interest rate offer on balance transfers and purchases	11.99%	2.9% for 12 months	$99	21.74%
St George Vertigo	An introductory offer on balance transfer and a low annual fee	13.24%	0.99% for 12 months	$55	21.49%
Virgin Flyer Credit Card	Earn 1 velocity point per $1 spent, plus an introductory offer on balance transfers	20.99%	1.9% for 9 months	$99	20.99%
Westpac 55 Day Credit Card	No annul fee for the first year with a low rate on balance transfers and purchases	0% for 5 months (reverts to 19.59% )	3.99% for 6 months	$0	21.49%
ANZ Frequent Flyer	An exclusive bonus points offer, Plus extended warranty, overseas travel and medical insurance,90 day purchase security insurance.	19.74%		$95	20.99%