Bust-Out
A bust-out is a carefully hatched plan to defraud credit card companies out of a lot of money.
First a fraudster applies and receives a credit card. They act like a model consumer for a brief time period—not overspending and making all monthly payments on time. So the credit card company thinks, “What a great customer; let's increase his credit limit.”
Meanwhile, the fraudster is taking out many other credit cards and making payments on time. When he amasses enough available credit to buy a Lambo, the bust-out phase begins. He maxes out all the cards and quits making any payments, leaving the credit card companies holding the bag.
This could happen with any type of revolving credit, such as store credit cards or home equity lines of credit, but fraud detectors are always on the lookout for this type of behavior. And just like in old Western movies, you have to believe that the Sheriff always wins in the end.
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Finance: What are Phishing Scams?8 Views
Finance a la shmoop what are phishing scams? all right you know when you're out [Woman on fishing boat with Dad]
on the lake with dad just the two of you trying to haul in some trout when one of
the fish pulls a fast one on you and hangs one of these things on your line [Fishing line with boot attached]
yeah total scam we're telling you you cannot trust anything that breathes
through the side of its face anymore these days really okay so that's a not
quite a phishing scam although the general idea is similar it's someone
trying to make you believe something that isn't exactly true with a phishing
scam the venue switches from the great outdoors to cyberspace never gotten an [A wooden hut appears]
email from a Nigerian prince who's temporarily down on his luck and if
you'll just wire him three hundred bucks in cash immediately well immeasurable
riches await you it sounds like a little good to be true there right yeah and it [Man gives thumbs up in room]
is well usually that Nigerian prince is an overweight balding guy named Jerry
living in his mom's basement in a suburb just outside of Cleveland he'd love
nothing more than to hook a sucker you and take that 300 bucks [Jerry on his computer]
off your hands but many times the scam is much more intricate than that often
its identity thieves who are trying to con you into releasing private
information such as your social security number or credit card information mm-hmm
that's out there well they might try to convince you that
their Amazon support or your bank or your long-lost uncle Yusuf who just [Person flicking through e-mails]
needs a few personal details before he can FedEx you your large inheritance
don't fall for any of it anytime you're randomly asked to divulge any sensitive
information or pop a wad of cash in an envelope stop for a second and ask
yourself whatever you might be well a fish and then ask yourself whether you'd [Cash burning]
like all your hard-earned money to be sauteed or flame-broiled good stuff...
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