Credit Card Fraud - Don't be a Victim!

People over the age of 65 make up almost 13% of the United States population, but represent 30% of scam victims. Seniors are especially vulnerable to consumer scams.

There is a scam I want to let you know about.  It’s not just pickpockets who steal your credit cards and money anymore.  Advances in computers and technology have made it possible for thieves to ruin your credit and tarnish your good name – without actually having possession of your credit card. And, the bad guys are already trying to get free stuff by using your credit card, so I hope you read this.

This scam is pretty slick since they provide YOU with all the information, except the one piece they want. Most people have read or been advised not to give their credit card number out over the phone unless you’ve initiated the order and you know you are speaking to a reputable company.  In this scam, the callers do not ask for your card number; they already have it. The information they are looking for is the security code on the back of your card.  This additional security step had been added recently in response to the growing cases of credit card fraud and is suppose to help deter fraud.  Well, the scammers have already found a way to circumvent the security steps set up.

By understanding how the VISA & MasterCard Telephone Credit Card Scam works, you'll be better prepared to protect yourself.

The scam works like this: Person calling says, "This is (name), and I'm calling from the Security and Fraud Department at VISA (or it could be MasterCard).  My badge number is 12460.  Your card has been flagged for an unusual purchase pattern, and I'm calling to verify the transaction.  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 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. The REAL VISA security Department verified it was a scam and within 15 minutes a new purchase of $497.99 was charged to the 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 conversation.  VISA 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 too late.

I urge you to tell everybody about this scam and hopefully it will help prevent someone from being taken advantage of.