Credit Card Scam

I get a newsletter called Everyday Cheapskate by Mary Hunt and in today's issue, I read this article:

Another crazy credit-card scam

It's been awhile since I've had a really juicy credit card scam to warn you about, so I suppose it was inevitable that one would show up. This particular scenario is so sophisticated that I can see how a person might think it just has to be legitimate. But don't believe it. Here's how it goes.

The 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."

It goes on. "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 800 number listed on the back of your card and ask for security. You will need to refer to this control number." The caller then gives you a six-digit number. "Do you need me to read it again?"

Here's the important part of how the scam works. The caller 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 seven numbers; the first four are part of your card number, the next three are the security numbers that verify you are in possession 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 three numbers to him. After you tell the caller the three 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 actually say very little, and they never ask for or tell you the card number. What the scammers want is the three-digit security code on the back of the card. Don't give it to them.

Instead, tell them you'll call VISA or MasterCard directly for verification of their conversation. VISA will never ask you for anything on the card, as they already know the information, since they issued the card.

If you give the scammers your three-digit PIN, 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.

Don't fall for it!