The infamous East Coast/West Coast rap feuds of the 1990s did not start with Biggie and Tupac. The rap feuds of that era was actually ignited by a lesser-known rapper. Timothy Blair, AKA Tim Dog, was a regional rap star from the South Bronx who actually started that infamous rap feud. Music history may have forgotten Blair, but not criminal history. After failing in rap, Blair became a scam artist and bilked over $2 million from dozens of victims. Blair allegedly engaged in card cracking fraud as well. (Blair died in 2013).
Another aspiring NY rap artist, Young Ash, reportedly stole $50,000 via card cracking fraud in 2018.
Now, “notorious street rapper resorts to crime,” may not be a shocking headline.
What is shocking about card cracking fraud is that this scheme entices average people to become unwitting criminals.
Most card cracking fraud schemes involve online scam artists enticing everyday people to become accomplices to fraud.
According to the American Bankers Association, almost $12 million dollars was stolen due to card cracking fraud in 2014.
You don’t have to be a rap star to be involved in a card cracking scam.
The typical American household owes over $137,000 in debts. The allure of card cracking fraud as a, “victimless crime,” can temp anyone – not just street rappers.
Over 60 million Americans applied for unemployment benefits since March 2020. Tens of million face imminent eviction in the weeks and months to come.
In this pandemic-wrecked economy, you should be aware of card cracking fraud.
Odds are better than even that card cracking scam artists look for people like you to enable their efforts.
Card Cracking Fraud 101
Card cracking fraud, also known as card popping, is a mutual effort crime that requires two parties working together.
However, the scam artist holds all of the power and information.
Card cracking scam artists take advantage of people who are financially hurting and looking for quick cash.
Card cracking accomplices, potentially people like you, don’t consider the consequences of their actions in such scams.
Card cracking is an enhanced form of check fraud. The difference is that the card cracking scam artist needs the help of the, “victim,” you, to pull it off.
A Card cracking scam sends you a phishing email or social media message promising easy money. This message is a carrot on a stick to people who are financially hurting.
After you answer, the scam artist befriends you. If you give them direct access you your bank account, they can make you easy money and give you a cut.
For a card cracking scam to work, you must give the anonymous scammer your bank account number, PIN, and other information. You must willingly give an online stranger the keys to your personal finances.
The anonymous scammer will deposit fake checks into your account and then withdraw that amount. Or, even more. Since they are assuming the most risk, they keep most of the money.
After withdrawing the money, the scammer may send you 10% or 20% of what they withdrew via wire services.
You must then call your bank and lie to them. You can say that your bank card was stolen. Or that your identity was stolen. This action makes you an accomplice.
Then, the bank may reimburse all the money that was, “lost,” to you. Or, simply close the account without penalizing you.
Who would do something like this? And why?
Card Cracking Fraud Accomplices
It may be comforting to believe that only hardened street rappers and criminals engage in card cracking fraud.
The truth is that those people are usually the leaders of crack cracking rings.
The other hard truth about this crime is that the victims are unwitting accomplices deluding themselves they are doing nothing wrong.
According to the American Bankers Association, most card cracking fraud rings target:
- Social media users
- People aged 19 to 25
- College students
- Single parents
- Newly enlisted active military personnel
Everyday people who may be financially struggling are sometimes easily enticed by card cracking fraud.
They may rationale that since their own bank account is involved, it may be a victimless crime.
Why You Must Refuse Card Cracking Solicitations
If a card cracking fraud scheme needs you to victimize your own bank account, what is the harm?
Well, you can cause a lot of harm for yourself and others.
Card cracking rings don’t develop overnight. These scam artists need to entice hundreds or thousands of people to give up their financial information. Card cracking rings are built by enticing one person like you one at a time.
Why would you trust an online stranger with your most sensitive financial information? Would you surrender this information to a good friend or relative?
Also, you are engendering a lot of trust in an online stranger card cracking scam.
The card cracking scam artist has all of your personal information and the power.
If you deposit $20,000 in a new account in the future, how do you know they won’t take it? If they have your Social Security number and other financial information, it wouldn’t be hard. How do you know they won’t steal your identity or sell it to someone else? Do you think the anonymous scam artist wouldn’t do that to you?
Your bank may flag your account as a possible fraud risk. This information can be passed to other banks. It may even end up on your credit history.
Imagine if a card cracking ring is busted and the police discover your name on their lists of associates? You won’t be viewed as a victim and will have a lot of explaining to do then.
Life is hard, no question about that.
Giving into the allure of a card cracking fraud scheme will only make life harder.
Don’t Respond to a Card Cracking Solicitation
Don’t respond to any message asking you to give up all of your financial information in exchange for a kickback.
Card cracking scam artists try to make it seem as though you are partners in a harmless scheme. Well, if you were partners, you would know the identity of this person.
Card cracking scam artists could live down the street or be foreigners from a different country. You would never know. Meanwhile, you must trust this person with your most sensitive financial information.
Card cracking fraud leaves you perpetually vulnerable. The scam artist knows everything about you and could use this information to their own ends in the future.
Even if you did this once, how could you not be paranoid for the rest of your life? If the scam artist has your name, address, and Social Security number, they could check to see if you’ve opened new accounts. You will probably be checking your online balance constantly.
Personal suffering is usually caused by willful ignorance and desire.
If you convince yourself that there are no victims in card cracking fraud, you may be in for a lot of suffering.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.