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AzLakeLizard
11-07-2007, 10:22 AM
Subject: New Credit Card Scam! READ THIS!
The Holiday Season is just a little bit down the road and the bad guys are already trying to get free stuff by using your credit.
New Credit Card Scam Snopes.com says this is true. http://www.snopes.com/crime/warnings/creditcard.asp
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 'Master Card'.
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 (gi ves 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 you rcard. 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 - 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'r e 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 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 Master Card' 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.

LhcBrad
11-07-2007, 10:32 AM
Thanks for the heads up.

Boatcop
11-07-2007, 11:00 AM
I check all my accounts daily on line. I know what I've used my card for, and if anything suspicious showed up, I'd call the Company immediately.
So far, no issues.

572Daytona
11-07-2007, 11:04 AM
I never respond to any calls that say they are from my credit card company. If they do call, I hang up and then call the customer service number on the back of the card and see if they did really call.

OGShocker
11-07-2007, 12:03 PM
Visa and Mastercard always give you your money back. No big.
It IS a big deal.

OGShocker
11-07-2007, 12:14 PM
Sorry for the C&P!
According to the US Department of Homeland Security, the cost of credit and charge card fraud may be as high as $500 million a year. And it's not just the credit card companies that are left holding the bag - cardholders often face economic losses, lengthy legal battles and struggles to re-establish clean credit records.
Also, credit card companies' losses may be reflected in higher interest rates across the board for all cardholders.
Stolen Receipts a Major Issue
The US Department of Homeland Security warns consumers: "Theft is the most obvious form of credit and charge card fraud [but] a more subtle form of fraud is misappropriation - the use of your card number without your permission."
Credit card misappropriation can happen in several ways. One of the most common forms of credit card misappropriation is when thieves "dumpster dive" through stores' credit card receipts or a dishonest sales clerk sells credit card receipts to criminals. Thieves then use the credit card numbers to make purchases - with your money.
Protective Legislation Exists, but are Merchants Complying?
In 2003, the US Congress passed a federal statute that has helped make it harder for thieves to get access to people's credit card numbers. Statute 15 UCA 1861, part of the Fair Credit Reporting Act (FACTA), prohibits merchants from printing on any receipt more than five digits of the credit or debit card. It also prohibits printing the expiration date.
The statute affected many merchants as of January 1, 2005 and it affected everyone as of December 4, 2006. While most merchants have complied with this legislation, some have not.
The Link to Identity Theft
Thieves can also use stole credit card numbers from receipts to gain personal information about cardholders and engage in identity theft, establishing new credit card accounts and maxing them out. Cardholders are then left to clean up the mess with the credit card companies and to clear their good names.
If you've experienced identity theft, you are not alone. There are at least half a million new cases of identity theft each year, about one per minute, estimates Beth Givens, director of the Privacy Rights Clearinghouse in San Diego.
Sarah's Nightmare
Sarah from Buffalo New York was a victim of credit card theft in 2005. "Someone stole my receipts from a store, and charged $2,800 in one day. Then, about 3 weeks later someone opened a new credit card in my name - with a credit line of $20,000. Luckily, the company called me to check it out. This happened over and over for about 4 months!"
"It was terrifying... I still worry about it," Sarah said, noting that she is in the process of buying her first home. "Two years later, I still have to explain myself to creditors."
Protect Yourself
Take the following steps to help protect yourself against credit and charge card fraud:
When you make a purchase, avoid signing a blank receipt. Draw a line through blank spaces above the total when you sign card receipts.
Void or destroy all carbons and incorrect receipts.
Check to ensure that the store has not printed more than five digits of the credit card, or its expiration date, on the receipt. If they have, they may be in violation of the law.
Save your card receipts and compare them each month with your billing statements.

Classic Daycruiser
11-07-2007, 12:23 PM
If you give send BoatCop your last three #'s on the back of your card he can check to see if there is any illegal activity:D :D :D :idea: :idea: :jawdrop: :jawdrop: :jawdrop:
Not!

YeLLowBoaT
11-07-2007, 12:24 PM
Its really simple... if you are being called by your credit card company... they already have ALL of your info. They don't need you to varify anything. If you think you have been scamed or are being attempted to be scamed... call your credit card company. That day. Have them close the account and reissuse the card. They will be more then happy to do it.
boat cop your lucky... I have one card that I use for work, it only sees suppliers, hd and lowes. About 3x a year I have something show up on it that is not mine( last time was bed bath and beyond for $1300.)
Its kind of funny always happends with in 3days of me buying something at HD...

Flashwave
11-07-2007, 12:25 PM
It IS a big deal.
When we get a chargeback from a card holder, we don't just eat it. We factor it in to our prices to cover the loss. So do all other merchants.

OGShocker
11-07-2007, 12:29 PM
When we get a chargeback from a card holder, we don't just eat it. We factor it in to our prices to cover the loss. So do all other merchants.
That's right. People who have the "no big seal" mentality are the same folks who don't mind businesses paying HUGE tax bills. :messedup: