The Secret Service is providing the below information to increase awareness of a VISA/Master Card scam. Royal Bank received information on the newest scam which is currently taking place in the Midwest, but moving across the country. NOTE: The callers do not ask for your card number; they already have it. The scam: Person calling says: “This is [name] and Im 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 Im 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?” Heres the IMPORTANT part on how the scam works: The caller then says, “I need to verify you are in possession of your card.” Hell 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, hell 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, “Dont 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. According to the victim, if you call the 1-800 listed on your card as instructed, the real VISA Security Department will answer and you will be told it was a scam and in the last 15 minutes a new purchase of $497.99 was charged to your card. Make a real fraud report and close the VISA account. VISA will issue a new card number. Important: What the Scammer wants is the 3-digit PIN number on the back of the card. Dont give it to them. Instead, tell them youll call VISA or Master Card directly for verification of the conversation. The real VISA told the victim that they will never ask for anything on the card, as they already know the information because they issued the card. If you give the Scammer your 3 Digit PIN Number, you think youre receiving a credit. However, by the time you get your statement youll see charges for purchases you didnt make, and by then its almost too late and/or more difficult to actually file a fraud report. The following day, the same victim received another call from a “Jason Richardson of MasterCard” with a word-for-word repeat of the VISA Scam. As instructed by VISA, a police report was filed. In addition to awareness of this specific scam, you may wish to consider the following measures in order to help minimize your exposure to fraudulent purchases, and more importantly, monetary loss due to identity theft. 1.) Utilize one credit card for all “automatic” purchases that you have configured on a periodic basis. These include such things as subscriptions, ongoing rentals, etc. Keep the card in a secure place, do not physically remove it from your residence. Use a different card for retail purchases, on-line purchases, and the like. Should this card be lost or stolen, your automatic payments will not be impacted or interrupted. 2.) Utilize a credit card, vs a debit card, for your retail purchases. A credit card offers you very limited monetary liability exposure (generally $50.00) for fraudulent purchases. A debit card is essentially a conduit into your bank account, which generally offers little or no loss protection against it being used to empty your account. Debit cards are best reserved for use as ATM cards only. 3.) This measure is perhaps your best protection against monetary loss due to identity theft. Most every state offers their citizens the ability to freeze their credit with the three credit bureaus (Equifax, Experian, and TransUnion). Freezing your credit will prevent others from obtaining any information pertaining to your credit history. Accordingly, a thief cannot open any credit in your name, as you will have no visible history to tap into. The credit bureaus will in turn provide you with a pin in order to un-freeze your information on an as needed basis. There is a slight fee (generally $10.00) associated with this transaction. The un-freeze would apply should you wish to take out a loan or obtain credit etc. You can specify who can look at your information during the open period, as well as for how long the information will remain open. Most merchants etc. will tell you which credit bureau they utilize in order to check your credit history, which will allow you to un-freeze your information for only that bureau. While this process may appear to be somewhat cumbersome, it palls in comparison to the potentially devastating impact that identity theft can have on your financial well-being. Should you wish to freeze your credit, information pertaining to the MA program may be found via the following link: mass.gov/ago/consumer-resources/consumer-information/scams-and-identity-theft/identity-theft/fraud-alerts.html
Posted on: Wed, 05 Mar 2014 16:13:27 +0000