Scam Alert: Newest credit card scam is fiendishly clever — don’t fall for it

Posted on October 3, 2007
Filed Under Advice, Fraud | Leave a Comment

Pay close attention, friends: The newest version of credit card fraud is very crafty and so well- performed that even a seasoned banking professional might fall for it.

The scam begins with a telephone call from a male claiming to be from the security department of Visa or Mastercard. He tells you that your credit card has been flagged due to unusual purchases and wishes to verify information for security purposes.

OK, so far none of this is new. Schemers have used this approach for a number of years. But here is the hook: The caller has the name of the bank issuing your card and the entire number. Gadzooks!

The caller goes on to ask if you’ve signed up for an anti-telemarketing phone device priced at just under $500 from a company in Arizona. You say, “no.” He says, “OK, a credit will be issued to your account,” but goes on to tell you that he will open a fraud investigation. He even offers the 800 number for Visa security so you can call to verify.

Now to begin the fraud investigation: Our con artist asks you to verify the numbers on the back of your card, even going so far as to provide the first in the series. You are asked to fill in the last three.

Why the last three? Those are the new numbers added to your credit card for security purposes which are commonly used to match the card holder to the card itself for online or telephone purchases.

Once you give those numbers, the scammer has everything he needs to use your account for his scheming and defrauding pleasure.

You might reasonably ask how the bad guy gets so much of your credit card information. Most likely your credit card was “skimmed” during your own use at some point.

Tourist locations and busy travel spots like airport restaurants or hotels can often provide a skimming opportunity for the less ethically inclined.

Here is how to reduce the risk:

• Watch your credit card when you make a purchase.

• Never give or verify any portion of your credit card numbers over the phone unless you initiate the call to a trusted company.

• Remember your credit card company security department will have all your information already, they don’t need to ask you for it.

• When in doubt, hang up and call the card issuer directly using telephone numbers provided on your monthly statements, the phone book or established Web sites.

Nora J. Carpenter is executive director of the Better Business Bureau, a not-for-profit organization serving Southwest Idaho and eastern Oregon.

Comments

Leave a Reply