Tuesday, April 7, 2009

Credit Card Fraud

This is happening right now and moving on rapidly. This one is 
pretty slick since they provide YOU with all the information, except the 
one piece they want.. Note, the callers do not ask for your card number; 
they already have it.

This information is worth reading. By understanding how the VISA & 
MasterCard telephone Credit Card Scam works, you'll be better prepared 
to protect yourself. A Company reports that one of their employees was called on Wednesday from 
'VISA', and someone else was called on Thursday from 'MasterCard', with a similar plot.

The scam works like this:

Person calling says, 'This is (name), and I'm calling from the Security 
and Fraud Department at VISA. My Badge number is 12460 , Your card has 
been flagged for an unusual purchase pattern, and I'm calling to verify. 
This would be on your VISA card which was issued by (name of bank). Did 
you purchase an Anti-Telemarketing Device for $497.99 from a marketing 
company based in  Arizona ?' When you say 'No', the caller continues 
with, 'Then we will be issuing a credit to your account. This is a 
company we have been watching and the charges range from $297 to $497, 
just under the $500 purchase pattern that flags most cards. Before your
next statement, the credit will be sent to (gives you your address), is 
that correct?'

You say 'yes'.

The caller continues - 'I will be starting a Fraud Investigation. If you 
have any questions, you should call the 1- 800 number listed on the back 
of your card (1-800-VISA) and ask for Security. You will need to refer 
to this Control Number. The caller then gives you a 6 digit number. 'Do 
you need me to read it again?'

Here's the IMPORTANT part on how the scam works:

The caller then says, 'I need to verify you are in possession of your 
card'. He'll ask you to 'turn your card over and look for some numbers'. 
There are 7 numbers; the first 4 are part of your card number, the last
3 are the Security Numbers that verify you are the possessor of the card.

These are the numbers you sometimes use to make Internet purchases to 
prove you have the card. The caller will ask you to read the last 3 
numbers to him. After you tell the caller the 3 numbers, he'll say, 
'That is correct, I just needed to verify that the card has not been 
lost or stolen, and that you still have your card. Do you have any other 

After you say no, the caller then thanks you and states, 'Don't hesitate 
to call back if you do', and hangs up. You actually say very little, and 
they never ask for or tell you the card number.

But after this company was called on Wednesday, They called back Visa, within 20 minutes 
to ask a question as they began to have doubts about the call they had just received. Are they ever glad they did! The REAL VISA Security Department told them it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to their card.

They made a real fraud report and closed the VISA account. VISA is 
reissuing them a new card. What the scammers want is the 3-digit PIN 
number on the back of the card. Don't give it to them. Instead, tell 
them you'll call VISA or Master Card directly for verification of their 

The real VISA people told them that they will never ask for anything on the card 
as they already know the information since they issued the card! If you 
give the scammers your 3 Digit PIN Number, you think you're receiving a 
credit.. However, by the time you get your statement you'll see charges
for purchases you didn't make, and by then it's almost too late and/or 
more difficult to actually file a fraud report.

It appears that this Is a very active scam, and evidently quite successful.

Pass this on to all your family and friends


Bill ~ {The Old Fart} said...

Thank you for sharing Baron, I don't have credit cards myself, but this scam is nasty. One has to be so careful today.

Voegtli said...

It is the same when you get an email, supposedly from your mail provider saying that you mailbox needs to be extended and please provider username and password.

A few years ago, I had to travel to Brussels by plane. At the airport I went to an ATM and withdrew some money with my Mastercard. A few minutes later, whilst I was in the departure lounge, I got a phone call from Mastercard. They asked if I just recently had used the card. I said yes. They replied that this has created an alert. Because a few moments before my cahs withdrawal, "my" card was used in Australia. With a charge of 1'000 dollars.

Mastercard sent me (by post) a form to be filled in. The case was settled. They never ask for card details on the phone (in Switzerland). SO, if someone would phone me, as explained in your post, I would tell them to go and get stuffed.

A Lady's Life said...

I don't answer phones anymore unless I am waiting for a call.
There is just no end to this stuff.

Smart not to have credit cards.
Only good if you travel, to pay ahead and tell your credit company where you will be and what purchases you will likely be making.
Easier on every one.
Also don't sign your cards but write
photo ID required. Then they have to look at a passport or license or something