CREDIT CARD SCAM ALERT: Kiwis be alerted

Posted on October 30th, 2009 by John


Credit card fraud is growing and latest police figures show the number of cases has more than doubled since 2005.

End of last month the New Zealand Herald reported an incident on how you can be a victim of a credit card fraud before you ever received it. One of the readers passed of this example of a credit card scam which as I understand is taking place in New Zealand at the moment. It is an example of how a little information will go a long way.

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 & Master Card Telephone Credit Card Scamworks, 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: Caller: ‘This is (name), and I’m calling from the Security and Fraud Department at VISA. My Badge number is 12460. You r 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 ?’

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 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 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.

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’re 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, friends and neighbours. By informing each other, we protect each other.

SOME TIPS

If you get a call like the one above, you can always say you will call him or her back and verify with the credit card provider first using the number on the back.

If  behind the computer, check your online credit card statement while you are talking and you will find very likely no transaction there (yet) as that is why the security pin is needed. If and when you are asked to provide the security pin, you know it is time to block the card anyway as the rest of your info is already out there.

Be careful with your credit card statements: destroy them instead of flicking them in the paper recycling bag or bin, and ensure you don’t receive important mail in an unsecured mailbox.

When you use your card online, do not process any transactions through sites that do not offer a secure connection.

Keep your computer/internet security software updated.

Be careful when you use your cards in restaurants and cafes you do not know well. Instead of handing your card over and let it go out of sight, walk to the cash register and keep an eye on what is happening with your card.

More tips can be found on the sites of different banks:

Whichever one of the links above you may want to check out, basically they all convey the same message:

THE BEST PROTECTION AGAINST CREDIT CARD FRAUD IS YOU.

DO GO TO THE TROUBLE OF LODGING A CRIMINAL COMPLAINT OR TIP WHEN YOU ARE A VICTIM OR SOMEONE TRIES TO PULL OF A SCAM ON YOU! Allocation of resources is related to the urgency of matters and that urgency follows from complaints and tips, so lodge them, for yourself AND others.

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Filed under: HEADLINES, INFORMATION SECURITY, SCAMS AND SCHEMES

2 Responses to “CREDIT CARD SCAM ALERT: Kiwis be alerted”

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