Credit card fraud

[Joe Chi Minh]

I don't know if this is "old hat" to you, but if it prevents someone being scammed, it will have been worth posting. This is the text of an email I received this morning from Australia:

Credit card scam, please read
This is the latest scam going on in Sydney BEWARE

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.

One of our employees was called on Wednesday from 'VISA', and I was called on
Thursday from 'Master Card'. The scam works like this: Caller: '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 w e 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 th e $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 next 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 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 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. But after we were called on Wednesday, we called back within 20 minutes
to ask a question.. Are we glad we did! The REAL VISA Security Department told
us it was a scam and in the last 15 minutes a new purchase of $497.99 was
charged to our card.

Long story - short - we made a real fraud report and closed the VISA account.
VISA is reissuing us a new number.
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 conversation. The real VISA told us 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.

What makes this more remarkable is that on Thursday, I got a call from a 'Jason
Richardson of Master Card' with a word-for-word repeat of the V ISA scam. This
time I didn't let him finish. I hung up! We filed a police report, as
instructed by VISA. The police said they are taking several of these reports
daily! They also urged us to tell everybody we know that this scam is
happening."

Instead of putting the reciver down straight away, maybe the best thing would be to con them by giving them a false 3-digit number, before reporting it to the police. More fun that way, thinking of their puzzlement and time-wasting.

[mwooldri]

1. Better still, if in doubt, call your credit card company.

I work for one and yes, outbound calls are made when there's suspicious activity. However no information is asked for in these outbound calls, and they are not at all offended if they get any suspicions.

Also check the caller ID number, if you have it. At least, with who I work for, you can provide that phone number to customer service and they'd verify if it was correct. But then fraudsters can spoof Caller ID, so that one has to be careful about too.

Mark.