Fake Bank Scamming Victims Out of Hundreds

People deposit up to $900 for semi-secured credit cards they never receive

By Ruth Brown,  Newser Staff

Posted Aug 19, 2013 6:21 PM CDT

(Newser) – A new scam is bilking people looking to rebuild their credit rating out of hundreds of dollars by offering semi-secured credit cards then pocketing their deposits, TheStreet reports. The Treasury has sent a letter to US bank executives and federal and state regulators warning them of the scam, run by an outfit named Freedom Gold Club, which claims to be associated with a bank called Freedom 1st National Bank—which doesn't exist—and also sometimes Credit One Bank, N.A., which does exist but isn't actually involved.

Freedom Gold Club contacts people by mail, offering them the secured cards for a deposit of $500 to $900. When victims send in the money, "the checks are cashed by an individual using the name of Bradford C. Ege II, and the victims never receive the anticipated credit card," says the letter.

These credit cards are real.   (AP Photo/Elise Amendola, File)
« Prev« Prev | Next »Next » Slideshow
My TakeCLICK BELOW TO VOTE
14%
0%
47%
3%
28%
8%
To report an error on this story, notify our editors.

NEWS FROM OUR PARTNERS
Other Sites We Like:   The Street   |   MSN Living   |   PopSugar Tech   |   RealClear   |   24/7 Wall St.   |   Biography   |   Barstool Sports   |   OK!