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Scams I haven't figured out yet
Old 03-09-2018, 10:31 PM   #1
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Scams I haven't figured out yet

1. "Day trade with my money" plus a phone number on a sign at the corner by the grocery store. Why would anyone want me to day trade with their money?

2. Dubya dubya dubya dot get freedom checks dot com. If you watch the video, you find out that "freedom checks" are just distributions from oil and gas partnerships. Fine, but they make it sound like free money. Why are they wanting me to buy oil and gas partnerships, and what's in it for them?

Answers welcome. There are probably others.
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Old 03-10-2018, 12:10 AM   #2
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Old 03-10-2018, 06:29 AM   #3
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Old 03-10-2018, 07:41 AM   #4
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Here's another scam for you. You can let other people use your credit rating, somehow related to your credit card, and earn yourself money by doing so. It's called piggybacking. Sounds very sleazy, but apparently is legal. Supposedly very low risk to you (if any).
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Old 03-10-2018, 07:51 AM   #5
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Sounds like you would be facilitating bank fraud. More importantly, it involves adding someone as an authorized user to your credit card. What if the guy runs up a big charge on your card (since he is now an authorized user) skips town and leaves you holding the bag?
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Old 03-10-2018, 11:36 AM   #6
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I know they're scams. The engineer in me just wants to know how the scams work.
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Old 03-10-2018, 12:54 PM   #7
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Old 03-11-2018, 03:32 AM   #8
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Sounds like you would be facilitating bank fraud. More importantly, it involves adding someone as an authorized user to your credit card. What if the guy runs up a big charge on your card (since he is now an authorized user) skips town and leaves you holding the bag?
I’m guessing they never get your address and account number, making it impossible to charge your account. They just get the benefit of your activity and credit limit on their credit report. Somewhat similar when you add a child to your account.
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Old 03-11-2018, 05:11 AM   #9
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Iphones to Nigeria is the one I encounter at work a lot. I have no idea what sad story or offer of money gets to these people but they are usually elderly and poor.

They are told to ship the phone and as soon as they ship the phone they must give them the tracking number and the money (repayment) will be released from Western Union or paypal. There is no money waiting for them and we used to then hold the package for fraud.

The theives then had the mark put the package in their name and then use the tracking number and our contract of carriage to force us to ship the phone despite the hold.

Because of that tactic Nigeria is now a restricted destination and the phones are held in a clearinghouse. I'm not sure what happens then.

On Fri I encountered the latest evolution of the scam to get around the clearinghouse. Just lie about the contents of the package. A lady comes in and tells me it's a Red Cross package to Nigeria. I ask her point blank if the package contains a cell phone (which are conidered dangerous goods because of the lithium batteries and have to be declared and marked as such). She says no and actually shakes the box for me.

I cut it open as soon as she leaves and there is a brand new iphone 7 wrapped in pajamas. I can then hold the box for undeclared hazardous materials and the contract of carriage is null and void. We then called her to come back and get the package and refunded her money. She's still out the money for buying an iphone though.
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Scams I haven't figured out yet
Old 03-11-2018, 07:40 AM   #10
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Scams I haven't figured out yet

Quote:
Originally Posted by Gumby View Post
Sounds like you would be facilitating bank fraud. More importantly, it involves adding someone as an authorized user to your credit card. What if the guy runs up a big charge on your card (since he is now an authorized user) skips town and leaves you holding the bag?


It's completely legal and called a "tradeline" in the industry. The person paying to be added to your account as an authorized user has no idea of your name, address, credit card number and no way to access it. It's a method of increasing a persons credit rating and providing compensation to the credit "lender."



The ethics of doing this are debatable but again it is completely legal. There are folks out there with very high limit and well aged accounts making well over 10k per year doing this.
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Old 03-11-2018, 09:04 AM   #11
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It's completely legal and called a "tradeline" in the industry. The person paying to be added to you account as an authorized user has no idea of your name, address, credit card number and no way to access it. It's a method of increasing a persons credit rating and providing compensation to the credit "lender."

The ethics of doing this are debatable but again it is completely legal. There are folks out there with very high limit and well aged account making well over 10k per year doing this.
You say it is "completely legal". What is the basis for that conclusion?
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Old 03-11-2018, 10:05 AM   #12
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You say it is "completely legal". What is the basis for that conclusion?
FTC provided a ruling about tradelines in 2015. The FRB also provided an opinion paper supporting its legality.

Both of these documents and others are easily available if you would spend a moment with the Google doing a basic search.
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Old 03-11-2018, 11:49 AM   #13
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Here's another scam for you. You can let other people use your credit rating, somehow related to your credit card, and earn yourself money by doing so. It's called piggybacking. Sounds very sleazy, but apparently is legal. Supposedly very low risk to you (if any).
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The ethics of doing this are debatable but again it is completely legal. There are folks out there with very high limit and well aged accounts making well over 10k per year doing this.
Interesting. If I understand correctly, I put your name on my credit card. You don't know my name, CC number or address. But when they pull your credit report, my good payment history shows up.

Does it work the other way? Does your bad credit history pull my score down?
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Old 03-11-2018, 11:58 AM   #14
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First part of your question—yes that’s basically how it works. Second part, no. People needing to increase their credit scores are only “piggybacking” on those whose credit is stellar and have well seasoned credit card accounts. There is no market for someone selling tradelines on a poor or mediocre credit history. In fact, you really need to be among the top 5 to 10 percent of the very best of credit scores to make this venture profitable and also posses credit card(s) that have a multi year history. It’s a bit of a rare unicorn with the general public.
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Old 03-11-2018, 12:25 PM   #15
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First part of your question—yes that’s basically how it works. Second part, no. People needing to increase their credit scores are only “piggybacking” on those whose credit is stellar and have well seasoned credit card accounts. There is no market for someone selling tradelines on a poor or mediocre credit history. In fact, you really need to be among the top 5 to 10 percent of the very best of credit scores to make this venture profitable and also posses credit card(s) that have a multi year history. It’s a bit of a rare unicorn with the general public.
So that's how these 'repair your credit in 30-60 days' signs work! I just can't imagine anyone with stellar credit doing this. While not illegal, it is IMHO unethical.
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Old 03-11-2018, 12:31 PM   #16
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So that's how these 'repair your credit in 30-60 days' signs work! I just can't imagine anyone with stellar credit doing this. While not illegal, it is IMHO unethical.


Yep, I agree on the ethics issue. I think the main reason that this side hustle isn’t widely known is that most people with appropriate credit scores and long term credit accounts don’t really need the income that comes along with tradelines. There are some out there though that have been milking this cow for quite a while.
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Old 03-11-2018, 12:34 PM   #17
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First part of your question—yes that’s basically how it works. Second part, no. People needing to increase their credit scores are only “piggybacking” on those whose credit is stellar and have well seasoned credit card accounts. There is no market for someone selling tradelines on a poor or mediocre credit history. In fact, you really need to be among the top 5 to 10 percent of the very best of credit scores to make this venture profitable and also posses credit card(s) that have a multi year history. It’s a bit of a rare unicorn with the general public.
I think it must be very possible for the person to get the CC #.
Why would the CC company allow this unless the person is going to get a card, which is tied to an account number ?
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Old 03-11-2018, 12:47 PM   #18
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Sorry, nothing else that I can add but lots of info available with a Google search.

I think I unintentionally derailed this thread from its original intent. My apologies to the OP and I’ll sit on the sideline now.
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Old 03-11-2018, 01:30 PM   #19
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FTC provided a ruling about tradelines in 2015. The FRB also provided an opinion paper supporting its legality.

Both of these documents and others are easily available if you would spend a moment with the Google doing a basic search.
It was a simple question. No need to be pissy about it. I have located nothing on the FTC's site about a ruling on tradelines, so if you can provide a link, I would appreciate it.
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Old 03-11-2018, 05:00 PM   #20
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I'm not ready to be so judgmental about this "piggybacking" thing.

Is it ethical for credit rating agencies to gather huge amounts of personal data about me? Is it ethical that, when they get hacked, I have to spend my time and money freezing my credit? Is it ethical that any fly-by-night business can declare to the credit rating and collection agencies that I'm in debt to them? Is it ethical that they accept these business's statements without proof, forcing me again to spend my own time and money fighting to clear my name?

Making a little money from one's own good credit rating by gaming THEIR system seems fair to me.
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