New credit card scam

[ITPjohn]

I got this from a friend today. Pass it on... jd

This is good information, verified on SNOPES.com. (On the Snopes site search "credit card scams" and click on item #2 after the search results come up). There is lots of info on SNOPES about this if you are interested in learning more.

Take care of your credit cards.

WARNING...New Credit Card Scam. This one is pretty slick since the crooks 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 and MasterCard Telephone Credit Card Scam works, you'll be better prepared to protect yourself.

Here's a story passed along the www: by a concerned citizen:

One of our employees was called on Wednesday from "VISA", and I was called on Thursday from "MasterCard".

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 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 made 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. 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 MasterCard" with a word-for-word repeat of the VISA 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.

Please pass this on to all your family and friends. By informing each other, we protect each other.

 

[MorriganTait]

http://www.hoax-slayer.com/card-security-code-scam.html

Visa & MasterCard Telephone Credit Card Scam
Summary:
Email forward warns that scammers are attempting to obtain CVV2/CVC2 security numbers by phoning credit card holders and posing as Security and Fraud Department staff from Visa or MasterCard.

Status:
True

Commentary:
The core information in this email forward is true. The three-digit security code included on the back of Visa and MasterCard credit cards is designed to enhance security by allowing merchants to verify the user's card during "card-not-present" transactions. The security codes, known as CVV2 and CVC2, are intended to reduce the occurrences of fraud for transactions such as online purchases and phone orders in which the merchant does not physically process the card. The CVV2/CVC2 is separate from the card account number and is printed on the back of the card in the signature panel. These security codes are not included in the information encoded on the card's magnetic strip or on receipts. Therefore, even if scammers have managed to acquire a credit card number, they may not manage to fully utilize the information unless they also acquire the CVV2/CVC2. Criminals obtain credit card numbers via card skimming devices, online and email fraud, stolen transaction records and other devious ways. However, while these methods certainly allow scammers to steal credit card information, this information will not always include the CVV2/CVC2 security codes.

Therefore the motive for the scheme outlined in the message is clear. If scammers have already acquired your credit card number, they might very well wish to enhance the usefulness of the stolen information by acquiring the credit card number's corresponding security code. If the scammers have your personal contact details as well as your card number, then this "Security and Fraud Department" phone ruse could certainly be an effective method for them to procure the desired information.

Thus, the outlined scheme is certainly plausible. I have no reason at all to doubt that scammers can and do carry out schemes like the one described. However, I do feel that the message may overstate the frequency of such scams somewhat. The message implies that this scam tactic is quite a common occurrence. The individuals featured in the message apparently received two such scam calls within as many days and the message claims that police are taking several reports a day about the issue. However, while this warning message has been featured in many legitimate news reports and financial websites, there is little credible information about how often this scam actually occurs.

Also, it should be noted that there are now several versions of the message, set in different countries and each with different details. Thus, the actual incidents described in these messages may well be anecdotal. As is common with email warnings of this nature, there is no way of confirming if the specific events outlined in the messages actually occurred or were simply made up as a way of embellishing the scam warning to emphasise its key points.

That said, the advice in the message is certainly worth heeding. You should never provide account information to anyone claiming to be from a credit card provider, the financial institution that issued the card or any other company, without first effectively verifying the identity of the caller. Credit card companies or banks are unlikely to request sensitive financial information over the phone unless you were the one who initiated the call. Phone based credit card scams have been around for a long time. While the CVV2/CVC2 ruse may be a new twist, fraudsters have long tried to glean credit card details from victims by making unsolicited phone calls and miss-representing themselves as company staff members or law enforcement officials. Cardholders should be very wary of giving any information at all about their account in response to an unsolicited phone call.

If you do receive such an unsolicited call, the safest course of action is to:

Ask for the caller's name and department details and then terminate the call.


Find a legitimate contact number for the company either in a bill or other official documentation or a telephone directory. (Don't use a contact number provided by the caller).


Call the company and ask to speak to the original caller by name.

This strategy should effectively derail any scam attempts and also allow you to deal with the issue in the event that the call was actually legitimate.

A key factor regarding this scheme is that it can only work if the scammer already has your credit card number and contact details. In other words, regardless of the success or failure of the scheme, your financial security has already been compromised. Thus, if you do receive a security code scam call like the one described, recognising it as a scam and terminating the call is only part of the solution. Naturally, you should also immediately inform your credit card issuer that the security of your card has been compromised and take any other steps necessary to protect yourself from credit card fraud and identity theft.

 

[horselover61]

Thanks for the head up. I am so caution with my any kind of account that I may have.

 

[diehardbiker]

I knew it that it would happen one way or other. I don't like the idea of CC requiring cashier to look at your signature! I can bet you some of cashier is crook, and that requirement is making easier for crook cashier to memorize your AVS code, only 3 digits, come on! it is alot easier to remember than 16 digits. That idea of requiring signature won't deter or stop anyone from stealing your card!
I just wish that banks would create a new "Financial Security Number. Nothing to do with SSN, but my thoughts of having FNS would make it harder for crooks to steal identity and once crooks stole your identity you can always go down to bank and ask for new FNS to stop these criminal activity. I bet you, it will WORK!

Don't you all know that FDR who created SSN never had intended it for financial identification number in the first place. However back in 1970, bank find it easier to use SSN, and start to abuse it since then. Now who pays for the price for abusing SSN? OFC most banks! But everybody suffers!

 

[horselover61]

Hear! Hear!

I knew it that it would happen one way or other. I don't like the idea of CC requiring cashier to look at your signature! I can bet you some of cashier is crook, and that requirement is making easier for crook cashier to memorize your AVS code, only 3 digits, come on! it is alot easier to remember than 16 digits. That idea of requiring signature won't deter or stop anyone from stealing your card!
I just wish that banks would create a new "Financial Security Number. Nothing to do with SSN, but my thoughts of having FNS would make it harder for crooks to steal identity and once crooks stole your identity you can always go down to bank and ask for new FNS to stop these criminal activity. I bet you, it will WORK!

Don't you all know that FDR who created SSN never had intended it for financial identification number in the first place. However back in 1970, bank find it easier to use SSN, and start to abuse it since then. Now who pays for the price for abusing SSN? OFC most banks! But everybody suffers!