from my momsie

It's been awhile since I've had a really juicy credit card scam to 
warn you about, so I suppose it was inevitable that one would show up. 
This particular scenario is so sophisticated that I can see how a 
person might think it just has to be legitimate. But don't believe it. 
Here's how it goes.

The 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."

It goes on. "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 800 number listed on the back of your 
card and ask for security. You will need to refer to this control 
number." The caller then gives you a six-digit number. "Do you need me 
to read it again?"

Here's the important part of how the scam works. The caller 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 seven numbers; 
the first four are part of your card number, the next three are the 
security numbers that verify you are in possession 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 three numbers to him. After you 
tell the caller the three 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. What the scammers want is the three-digit security code on 
the back of the card. Don't give it to them.

Instead, tell them you'll call VISA or MasterCard directly for 
verification of their conversation. VISA will never ask you for 
anything on the card, as they already know the information, since they 
issued the card.

If you give the scammers your three-digit PIN, 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." (End of 
report)