How to avoid credit report scam

In a credit report scam, the victim provides sensitive financial information to a website or e-mail to receive a free credit report. Instead, the imposter posing as a business will capture information to commit identity theft related frauds.

In most of the cases, emails are sent out to hundreds of thousands of individuals. The credit report scam seems to have originated in the United States in January 2005.

How credit report scam works?
As ironic as it may sound, the Credit Report Scam take advantage of innocent consumers who are trying to monitor their credit report. This scam sends out email notifications to thousands of consumers informing them to collect their free credit report by clicking on the email link provided in the body of the email. The fraudsters will always try to pose as a legitimate business helping customers get their free credit report. Recipients of the email will click the email link and will fill up the online form to receive their free credit report. The victim will fill up the form and give away their name, date of birth, social security number etc, to receive a free credit report. The fraudsters now have the necessary information in order to create havoc in the victims financial life. They can open new bank accounts, credit card accounts, commit credit fraud and much more.

What you must know about free credit report
If you intend to order your free credit report over the internet, the only website authorized by the Free Credit Report program is annualcreditreport.com There are more than a million websites that come up when searched for free credit report. Usually most of these companies will offer your software packages for credit monitoring or worst yet - steal your identity!

What to do when you are a victim of credit report scam?