Phantom Banks Operate Credit Card Scam out of Mailboxes

Phantom Banks Operate Credit Card Scam out of Mailboxes

October 29, 2013         Written By Lynn Oldshue

Two ghost banks in Ft. Lauderdale, Florida have been operating credit card scams using mailboxes located at a local storage facility. The banks, working under the names of AmTrade International Bank and Freedom 1st National Bank, have sent out numerous letters asking customers to pay money in order to fix their bad credit.

The scam works through the promise of a secured credit card. These are cards that anyone can apply for because the applicants put up the money for the available balance. In exchange, the secured credit card company then reports the payments on the card to the credit bureau, which improves your credit score.

These phantom banks planned to do no such thing.

In fact, the banks never sent out cards in exchange for the money they were receiving. Most amounts were between $500 and $900, but one man sent over $3,000 to the rogue financial institutions. Investigators have not been able to track down the culprits yet because they only paid for their mailboxes for one month. The storage facility with the mailboxes reports receiving over 300 phone calls complaining about the scam.

If you happen to live in the Ft. Lauderdale area and sent money to one of these two banks, don’t expect a card in the mail any time soon. Contact the police to note the details of your experiences, and hopefully, you can get your money back in the future.

The information contained within this article was accurate as of October 29, 2013. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
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