How to Identify Automatic Billing Scams
People can easily fall victim to automatic billing scams, especially in this day of online subscriptions, paperless billing options and credit card use at an all-time high. People who frequently use their credit cards for monthly subscriptions and online billing need to watch out for fraud, or they'll find their cards loaded with recurring charges they never wanted.
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Instructions
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Watch out for people asking for personal information that doesn't make sense. If a "free" web service is asking you for your credit card, chances are they'll use it to charge you for something else without your consent.
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Research everything you can about the provider. Do a search-engine check on the business' name. Then do another search, adding the words "fraud" or "scam." See how many sites and forums come up with complaints about this business.
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Keep a list of every subscription or automatic billing service you apply to with your credit card. When your card statement arrives, check every recurring charge on it and look for any you don't recognize. Find out where they came from.
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Contact the website or phone number provided on your statement from the source that charged you. Look for any sites or numbers that are similar or connect you to the same place. This likely means one provider is double-charging you.
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Read all the terms and conditions of everything before you confirm them. Many scams hide within their fine print that they'll be billing you monthly to avoid the legal issues. It's still unethical, and you may get trapped by it.
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Tips & Warnings
If you get caught in a billing scam, often your only choice is to cancel the credit card or get the number changed. This is a huge hassle, especially since you'll have to notify the legitimate services you use the card for.
