A New Credit Card Scam
By understanding how the latest VISA and MasterCard Telephone Credit Card Scam works, you'll be better prepared to protect yourself and your clients.
One version starts with a phone call, from someone purporting to be with one of the major credit card issuers. The voice sounds professional, casual and not like a salesperson. The person calling says, "This is _______, 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 just calling to verify. This would be on your VISA card, which was issued by the ______ bank. Did you purchase an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona?" It could be anything purchased for less that $500 from out of state or even out of the country. 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 your residence address), is that correct?" You say "Yes" falling right into the caller’s trap.
The caller continues... "I will be starting a formal Fraud Investigation. If you have any questions, you should call the 1-800 number listed on the back of your card (1-800-VISA, etc.) and ask for Security. You will need to refer to this Control #". The caller then gives you a 6 digit number, and in a very businesslike manner, says, "Do you need me to read it again?" Next comes the IMPORTANT part on how the scam works. The caller then says, "I just need to verify you are now in personal possession of your credit card." The caller will ask you to "Please turn your card over and look for some numbers. There are 7 numbers; the first 4 are from your card number, the next 3 are the 'Security Numbers' that verify you are currently in possession of the card. These are the numbers you use to make Internet purchases to prove you have the card. Read me the 3 numbers." 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 questions?" After you say “No,” the caller then thanks you and states, "Don't hesitate to call back if you do," and hangs up.
You have actually said very little, and they never ask for or tell you the basic credit card number. However, if you were to call the real number for your credit card, you will learn this has been a scam to get those three numbers. Chances are, there are a series of charges being made for amounts just under $500. Once this has occurred, only a real fraud report and closing your credit card will stop the process and you’ll have to have a new card issued. This will be a real mess if you have any automatic accounts being handled by credit card, such as utilities, phone or cable.
What the scammer wants 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 MasterCard direct. The real credit card company personnel will tell you 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 for a false charge. That’s how they soften you up. 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 more difficult to actually file a fraud report.
Another version of this is conducted on the Internet, and you are asked to verify information, and they will be seeking confirmation of some information, but really after the PIN Number. How do the scammers get the information they use at the start? Usually it is from a charge you have made at a legitimate business or restaurant. They have your name and the credit card number. The Internet can give them your phone number and address. A credit report can give them even more data to make the call seem reasonable, and that can lead to the terrible “Identity Theft” that might take nearly a year and a lot of effort and stress to clear up.
