29/12/2010

I have had a couple of interesting phone calls from "Financial" organisations in past couple of weeks.

The first one was something along the lines of " Hello Mr Yeoman my name is Amir I calling from (a large credit card Company) I need to speak to you about your account. For security reasons can you confirm ......"

The other a message left on the machine " Hello I am calling from (High Street Bank) anti fraud team .. please listen to this message <Pause> <tape of young lady also with a strong Asian accent> ........ please call us on 0845 etc."

My response  NO! I won't and I put the phone down on the first and sent an e-mail to the High Street bank .... both turned out to be genuine this time but....

You find a name and phone number...... you phone up and ask to speak to the name about their credit card you are from (lets say Capital One or MBNA to a UK citizen  ... that's got half of you!) get you confirm your address, security word that you last transactions were at the Shell garage down the road not in Indiana USA I have a lot of useful information to go back to the credit card company and start extracting the information from them and that will enable them to steal your card.

When someone phones you up you have no idea of their bonafides, Calling back on an obscure number is no help .. rerouted and charged £2.50 an hour to hold ... plus even I can pick up a phone and say "NatLaysWestLands Bank Fraud Team Can I help"

If Financial Institutions were really keen to prevent fraud they would allow us to give them a password which they should use to prove who they are.

The "High Street Bank" were instructed, in the e-mail, that if they wanted to phone me about this possible attempt at "phone phishing" they should pass on the message that "Caroline is calling" (an old pirate radio jingle) ... shame they didn't call back.

Dec 2007 ... this arrives by e-mail circulation

This one is pretty slick since they provide Y O U 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 & MasterCard Telephone Credit Card Scam works, 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 "MasterCard". 

The scam works like this: 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 London?"  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 0800 number listed on the back of your card (0800-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 MasterCard 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 MasterCard" 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 . 

I don't believe this is a British story .... in the UK you cannot report credit card fraud as you are not the victim! But .... you have been warned ask your card issuer to repeat the phrase ... Caroline is calling .. better still invent your own.