In the Latest Credit Card Scam the Fraudster Already Has Your Credit Card Number-Truth!
In the Latest Credit Card Scam the Fraudster Already Has Your Credit Card Number - Truth!
Summary of eRumor:
A chain email warns about the latest credit card scam in which a fraudster poses as someone from a credit card company and asks the cardholder for their card's three-digit security code.
This scam is real, but it isn’t new.
This type of fraud is called “phishing.” It happens when a fraudster poses as a company or government agency to get a victim to give up personal information.
This eRumor deals with a specific type of phishing that is called “spear phishing.” That happens when a scammer already has some personal information — like a name or credit card number — and uses it to get a victim to give up even more personal information, the Royal Bank of Canada reports:
“A recent rise in data breaches involving email marketing providers has resulted in a large volume of names and email addresses being accessed by fraudsters. This type of data breach opens the door to a specific type of convincing email scam called ‘spear phishing,’ where the sender can identify you by name and send an email that appears to be from a company that you deal with. The goal is to get you to open the email and provide the fraudsters with your personal information.”
A telephone version of the spear phishing scam surfaced in West Virginia in 2010. The West Virginia Office of Technology issued a scam alert that warned fraudsters had posed as Visa and Master Card representatives and asked cardholders for their three-digit security code in order to investigate a fraudulent purchase.
That scam alert is the exact same text that appears in the chain email that is marking the rounds on the web.
If a fraudster already has a victim’s credit card number but not the three-digit security code on the back of the card, they will be unable to use the card to make online purchases. That’s why cardholders should never give up their security code over the phone, according to Visa:
“The three-digit security code shown on the back of your Visa card lets merchants know that you're physically holding the card when you make a purchase online or over the phone. It's yet another layer of protection Visa implements to prevent fraud before it happens.”
Credit card companies say that consumers should never reveal personal information over the phone. Cardholders should hang up and call the 800-number on the back of their credit card if they receive a suspicious phone call from the company.
A real example of the eRumor as it has appeared on the Internet:
This is a heads up for everyone regarding the latest in credit card fraud.
Royal Bank received this communication about the newest scam. 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 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 last 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. We were 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 Scammer wants is the 3-digit PIN number on the back of the card. Don’t give it to
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!