Thursday, April 03, 2008

ALERT - NEW credit card scam


This is happening in southern Alberta right now and moving.
This one is pretty slick since they 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 &
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 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 last 3 are the Security Numbers that verify you are t he 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 last 3 number 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.

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

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. I dealt with a similar situation this
morn ing, with the caller telling me that $3,097 had been charged to my
account for plane tickets to Spain , and so on through the above routine.

It appears that this Is a very active scam, and evidently quite successful.

Pass this on to all your family and friends

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