Caller : '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.T
he 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 o n 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 in all states.
In the context of Credit Card frauds, one of the Credit Card issuing Banks
in India is calling the customers and asking them to insure themselves
against fraudulent use of Cards. The insurance premium is hefty and is
proposed to be debited to the card account.
As an ex-Banker, I have told the Bank that they are responsible for any
fraudulent encashment of my credit card and I donot need to take any
insurance at my cost to cover their liability. I have also asked them to
take a group insurance cover at their end if they so desire.
In case any of the customers receive such call I suppose it is better to
refuse the insurance. I also urge RBI to instruct the Banks that fraudulent
encashment of a credit card is like "Forgery". Customer cannot be held
liable even under "negligence". He may be liable only if he is proved to be
an accomplice in the fraud. This is a standard principle of banking law in
case of forged cheques and should be applicable not only to stolen credit
card related payments as well as Phishing related payments.
