newsinferno.com : Credit card scam artists have come up with a new tactic to steal consumer’s personal information; they trick people into giving out their three-digit security number issued by credit card companies on the back of their cards. The con is a real problem since the thieves already have consumers’ actual credit card numbers. This gives the criminal instant credibility with the victim when soliciting them.
According to Diana L. Taylor, Superintendent of the New York State Banking Department: "As credit card use has continued to skyrocket, there are more and more people – online merchants, store clerks, waiters – who have access to your credit card number. This scam works so well because, prior to making the call, the scammer has already illegally obtained the consumer's credit card number. By asking only for the three-digit security number during the phone conversation and providing phony badge and control numbers, the scammer sounds legitimate to the unsuspecting consumer."
The agency has issued a warning to consumers outlining the scam wherein the thief telephones a prospective victim and claims to represent the security and fraud department of a major credit card company often giving false badge and control numbers to sound more legitimate.
The caller claims the consumer's card was “flagged” by the security and fraud department because of an "unusual purchase pattern" for a recent purchase under $500. After the consumer denies having made the purchase, the scam artist tells the victim that a credit will appear on the consumer's next credit card statement.
After providing a fake control number to "document" the fraud claim, the scammer requests the three-digit security number from the back of the credit card in order to prove that the consumer is currently in possession of the card. Once the scammer has the three digit number, they are free to make fraudulent purchases using the credit card number. According to Department officials, within as little as fifteen minutes of the call, the thief uses the information to make a purchase for the very amount the scammer told the consumer had been 'flagged' as suspicious.
Since the scammer had warned that a charge for this amount had been made, the fraud victim will not immediately be suspicious or report the bogus transaction.
Officials advise consumers who receive a call claiming to be from a bank or credit card company's security or fraud department to hang up and call the credit card's toll-free number in order to make sure that the call is valid. Companies usually list the toll-free number on the back of the credit card.
Source: Newsinferno News Staff
According to Diana L. Taylor, Superintendent of the New York State Banking Department: "As credit card use has continued to skyrocket, there are more and more people – online merchants, store clerks, waiters – who have access to your credit card number. This scam works so well because, prior to making the call, the scammer has already illegally obtained the consumer's credit card number. By asking only for the three-digit security number during the phone conversation and providing phony badge and control numbers, the scammer sounds legitimate to the unsuspecting consumer."
The agency has issued a warning to consumers outlining the scam wherein the thief telephones a prospective victim and claims to represent the security and fraud department of a major credit card company often giving false badge and control numbers to sound more legitimate.
The caller claims the consumer's card was “flagged” by the security and fraud department because of an "unusual purchase pattern" for a recent purchase under $500. After the consumer denies having made the purchase, the scam artist tells the victim that a credit will appear on the consumer's next credit card statement.
After providing a fake control number to "document" the fraud claim, the scammer requests the three-digit security number from the back of the credit card in order to prove that the consumer is currently in possession of the card. Once the scammer has the three digit number, they are free to make fraudulent purchases using the credit card number. According to Department officials, within as little as fifteen minutes of the call, the thief uses the information to make a purchase for the very amount the scammer told the consumer had been 'flagged' as suspicious.
Since the scammer had warned that a charge for this amount had been made, the fraud victim will not immediately be suspicious or report the bogus transaction.
Officials advise consumers who receive a call claiming to be from a bank or credit card company's security or fraud department to hang up and call the credit card's toll-free number in order to make sure that the call is valid. Companies usually list the toll-free number on the back of the credit card.
Source: Newsinferno News Staff
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