Since my story ran last week about pre-acquired account marketing, I've received e-mails from folks who read my story and checked their credit card statements only to realize they were victims of this scam. They found small charges labeled "Reservation Rewards" and "PrivacyGuard" and were shocked to learn they must have purchased these so-called "services."
I know pre-acquired account marketing is an unsexy term and a mouthful to say. But it's everywhere on the web and can cost you hundreds of dollars if you're not careful.
I encourage you to read my entire story.
But in a nutshell, here's how this works:
After a consumer makes a purchase at a participating retailer's website, he is offered a cash-back reward or free item. The offer is typically designed to look as though it's part of the underlying transaction.
If the offer looks enticing, the shopper may not see or fail to read the fine print. Then he clicks "yes," or provides an e-mail address, and his payment information is sent from the retailer to the marketing company offering the reward or freebie.
The retailer gets a cut of the profit for referring the customer to the loyalty program.
Another variation of this practice is as follows: A consumer receives what looks like a rebate check in the mail and fails to read, see or understand the fine print on the back stating that if the check is cashed, the consumer is automatically enrolled in a monthly membership program.
