Credit card scam - well worth reading

[lynnbmack]

This was forwarded to me by a friend - please read it as it is the kind of call that could easily catch you out if distracted!

This one is pretty slick since they provide Y O U 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 "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 London ?" 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 £500purchase 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
fraudinvestigation. If you have any questions, you should call the 0800
number listed on the back of your card (0800-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 thecaller 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 MasterCard 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 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.

[Bill Henry]

Good to know.

Thanks for the heads up.

[Moglet]

Ditto here, Lynn. And I'll be pretty distracted for the next few weeks! Much appreciated!

[prospero]

Thanks for that intel Lynn.

Forewarned in Forearmed.

[markw]

maybe I'm paranoid but I just wont accept any call of this kind unless they prove to me who they are - I basically fire back the sort of questions your asked if you call a bank - last transactions - standing orders etc - they rarely play ball and so I tell them to write to me - they know the address.

What I don't understand about this particular scam is the fact that they need the 3 digit security code - if they have the rest of the info - including your phone number then its almost certain they would have copied the security code??. But! you've added too my paranoia so I'm going to be even more careful.

[osgood]

This email warning has been circulating since November 2003, so it is certainly not new.

Urban legends says the warning is worth heeding!
http://urbanlegends.about.com/library/b ... _fraud.htm

Hoax-slayer says it is true, so thanks for warning us, Lynn!
http://www.hoax-slayer.com/card-security-code-scam.html

I have made it a habit to check out this type of warning and other suspect stories on websites such as http://www.hoax-slayer.com/ and http://urbanlegends.about.com/ and http://www.snopes.com/

Most email warnings have proved to be false. This is one of the very, rare exceptions!

[Not your average framer]

What I don't understand about this particular scam is the fact that they need the 3 digit security code

They want your security code because they don't have it. Many companies which sell by mail order keep all their transactions on their computer system and this includes your credit card details. However they are not pemitted to store your security code. In all probabilty the criminals got the rest of the information by hacking into and un-protected computer, but it is of little use without the security code.

All credit card numbers conform to a special algorithm called modulo 10 and this algorthm is pre-programed into your card terminal so that any card plugged into your terminal can be verified as being a real credit card number. The communications between the terminal and your card are totally secure, due to a very clever method of encription.

These days without the genuine card containing the chip and pin system it is not possible to make an illegal transaction in person. So the only other possiblity is to do a mail order transaction and for this they need your security code.

[John]

Many thanks for the information Lynn.

I have been telling everyone, and thanks to you, my sister in law was warned in time. She received the call the very next day, and knew exactly what to do!