New scam targets homeless

A scam preying on the homeless is popping up in cities across the country.

Scammers reportedly have been ruining homeless peoples' credit and incurring big debts in their names. The reason? To get their hands on cheap cellphones that they later sell, according to CNNMoney.

Fraudsters pay homeless people to take out cell phone contracts and get subsidized phones - the phones cost maybe $100 for a phone worth $600. The scammers then dropp off the homeless victims and sell the phones, giving them as little as $50 or $100 for their efforts.

But because the phones are in their names, they end up racking up hundreds or thousands of dollars in bills. When they fail to pay, their credit gets destroyed.

Read more from CNNMoney.