New Twist on a Credit Card Scam

As we approach the holiday season the credit card scams have kicked into high gear. We were made aware that a slick approach that originated in 2003 is once again gaining momentum. It sounds plausible as the caller provides the card holder with information and asks for only the one piece they need to make a fraudulent Internet or phone transaction. This scam is affecting MasterCard and VISA customers alike. We encourage clients to pass this information along to your customers and members as the scenario can sound very convincing. Here's how it works:

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?"

The cardholder answers: "No"

The caller continues:
"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 (caller provides cardholder address), is that correct?"

Cardholder answers: "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 and ask for Security. You will need to refer to this Control Number." (The caller then provides a 6 digit number) "Do you need me to read it again?"

Here's the IMPORTANT part on how the scam works.

The caller continues:
"I need to verify you are in possession of your card. Please turn your card over and look for some numbers. There are 7 numbers on the back of all credit cards the first four are part of your card number, the next 3 are the security numbers that verify you are the possessor of the card. Please read me the 3 numbers."

The cardholder complies with the request.

The caller continues:
"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?"

The cardholder replies: "No I don't have any questions."

The caller concludes the conversation with:
"Thank you and don't hesitate to call back if you do."

The cardholder actually says very little and the thief never asked for or told the cardholder the card number. The cardholder that received the call turned around 20 minutes later and placed a call to the real VISA security department and learned the prior conversation was a scam and in the past 15 minutes a new purchase of $497.99 had been charged to their card.

Long story - short - a true fraud report was filed, the VISA account was closed and a new card was re-issued. What the scammers want is the 3-digit CV2 number on the back of the credit card that is used to make as a verification code for Internet and phone transactions. Consumers should be advised to end any calls they receive from the Security and Fraud Department and to then contact VISA or MasterCard directly for verification of the original request. The actual credit card company will never ask for any information since they issued the cards and have the data on file. Consumers, please also file a police report of the scam.