Credit Card Scam

[aussiefool]

I don't know if this is really happening but if it is be aware.......

WARNING...New Credit Card Scam.

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.
My husband 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 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 to 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.

[fritzy]

Thanks for the heads up Aussiefool. I personally don't have a whole lot of time for people (animals) like that... I am not a big believer in capital punishment [smiley=hanged.gif] [smiley=behead.gif]but some poeple deserve a bullet in the leg... [smiley=rifle.gif] then another one in the other leg... [smiley=rifle.gif]Will be warning my family and friends.
Cheers Fritzy

[scuttlebutt]

Here's a link that expands on the post by aussiefool.

http://www.snopes.com/crime/warnings/creditcard.asp

cheers,

steve

[Needmorerum]

But what happens to all those sites and shops that you have given the 3 digit PIN to for legit purchases. They will have you number anyway. It's not like it changes each time you use the card.

Corry

[Burley_Boy]

We take credit card over the phone and if there was a dispute I think I would have to fully justify the charge or it would be reversed. Visa and Mastercard (actually its the bank) issue us with the rights to accept over the phone transactions but if we don't honour that trust we'd loose our rights to accept the transactions so I would assume that Visa or Mastercard would have to return a debit from someone they have authorised to accept transactions from.

It's not like we're transferring money to some unknown account, we have to be authorised by the bank thus Visa/Mastercard so I think the looser would be the bank not you, you haven't signed for the transaction in any way and I can't see you being liable. (don't take this as any legal advice in any way). How can they allow money transfers to some scammers based on your digits that can be read everytime you pay a restaurant bill.
What is worrying though is that people who hold your numbers and who transact small amounts on your card may not be picked up by you and you don't notice small amounts being skimmed.
Anyway, just my thoughts for what they're worth but don't pay too much attention to me

[vertico]

as he said dont give out your details to anyone on the phone

[RobSee]

In the vast majority of cases it is the bank that loses, but of course the consumer is harmed because the card companies recoup costs through high interest rates on unsecured credit (credit cards).

There is also a bugger of a time filling out forms and waiting for the bank to investigate and refund the money - hell of an inconveinience - best to hang up on the bastards

[Kiktz]

Good on you Aussie Fool for keeping us up to date.

I have one some thing to add here. For work I have to travel into asia
on a fairliy regular basis. In jan this year upon my return had pretty much the same phone call. BUT......... whilst using my card in KL some HAD tried to miss use my card. The account was held with the NAB, The big difference here was they asked who they were talking to and the proceeded to advise that my card was canceled, not asking. I was very reluctant to give over any of my details so the guy on the other basicly gave me all details of what I need to be comfortable with him. Upon this advice he had apologised for having to cancel my card and that there is a new one already in the post to me. Two days later I received my new card and all was happy.

The card company being on its toes saved me alot of headache.

Clarify who you are talking to quizz them,

Aj

[gogecko]

Hmmm, this scam looks like its using a USA 1-800 phone number. My cards all have 13 0000 type phone numbers on the back. This makes me think some well meaning person has just copied an email alert, rather than getting called.

Has anyone actualy recieved a call like this? Are the telemarketing scammmers actually working oz?

The snopes website is awesome. I check out all possible scams there before I have to return an email to my well meaning friends, explaing that AOL and microsoft dont track emails and pay money, and there is no actual sick dying kid involved.

Thanks for the scam alert. I just wondered if it was actually happening here.

[Pwoida]

Another good web site is Urban Legends. Here's their take on it:

http://urbanlegends.about.com/librar...card_fraud.htm

[Owen]

The three digit number they refer to is called a credit card verification number (CCV)
It is designed so that people can't pick up one of your credit card slips and use it over the phone to make purchases. That's the theory!!
The reality is (at least with the terminal I have at work) that when you enter a transaction manually it will ask you for the CCV, but you can complete the transaction without it.
I imagine in the bank's fine print any retailer who doesn't get a CCV number is probably up shit creek, the same as if you don't do everything right with equifax and cheques.

cheers,
Owen Dare