Common Online Schemes That Can Ruin Your Credit

Filed in Credit Reports by on September 10, 2013 0 Comments

Common Online Schemes That Can Ruin Your Credit

Canadians is one of the most connected societies in the world and we do just about everything online – from shopping to paying our bills. But as we become more comfortable with technology it increases the chances of our personal information being compromised and our credit score ruined.

Every Canadian, whether we like it or not will have a credit report which documents every financial detail about us. In case you haven’t reviewed it yet, start by requesting a free credit report for Canadians. The information that you find documented about your financial life could be surprising.

Most people think that their firewall and security software is enough to protect them from being a victim of identity theft. However, they are not enough to protect people with the sophisticated programs. The internet is full of scams and these scams are all based on our human nature and not just technological advances.

Today there are several scams are designed to convince a person to give their information voluntarily. These fraudsters are deceptive and quite crafty at it. The goal is to trick you into giving them what they want. The internet makes committing these types of crimes much easier than before. The sad part is these scams can affect your credit and can damage your ability to buy a car or refinance your mortgage. While most say it won’t happen to them, you may not find out until it is too late.

The eBay and PayPal Scheme

eBay is the online marketplace of choice and the happening place for those who want to buy things at a great price. Since its inception in 1994, it has been a great place for thieves and cons to attract their victims. While the schemes from 1994 were much less sophisticated than today’s schemes, they were still present.

Those who have PayPal accounts have to put in their financial information into the system to obtain an account. From the checking account information to the credit cards, this information can be hacked without issue. It doesn’t even have to be a person who is buying something on eBay, PayPal accounts can be hacked.

The common scheme is to put something on eBay that really isn’t for sale. A person will bid on this item and pay the seller. The seller will pocket the money. While eBay and PayPal has protection in place to ensure safety, these people set up new accounts on a regular basis. By the time these companies are onto their tricks, their account is closed and a new one is already opened and in business.

Kijiji Classified Ads

Kijiji is one of Canada’s largest classified ads. Users need to be careful of the frequent scams that are going on all the time on this site. The most common scam is for the person who is selling something to be contacted by an interested party. They will be asked to hold something for them and they will send a money order. The money order or certified check is written on an account that is closed or fake. The party will cash the check and give the buyer a refund of a certain amount. The problem is this check is fake so the person who cashes it can face criminal charges for cashing a check on a closed account, and they will have to pay the bank for the money that it is missing.

In the year 2009, it was reported that more than eleven million people were the victims of identity theft. The numbers are continuing to rise, as these internet schemes continue. If you or your significant other gets duped by one of these schemes, it could impact your credit and ruin it. It is important to check your credit report regularly and make sure there is nothing on there that you didn’t authorize. Checking your credit periodically is not only smart, it is imperative to make sure you’re not a victim of one of the latest schemes. When checking your credit report, you MUST make sure that the site is legitimate and is a local site, meaning it is from Canada or caters to Canadians. Below, I’ve listed some trustworthy and verified links to help you obtain your Credit Report in Canada.

About the Author ()

Pat Drummond is the author of Credit Reports Canada and considered by many to be one of the leading experts on productivity and simplicity in relation to financial planning. He started this online credit score & reporting site to chronicle and share what he’s learned in over 20 years of counseling families and individuals on debt management, obtaining loans and improving credit scores.

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