Beware another card fraud scam Card fraud is increasing so we need to be aware of the clever scams that fraudsters are using. One scam recently experienced by Michael Binns is reported in detail as a useful warning for fellow members. (10.3.05)

A friend received a telephone call this week from 'VISA' and I was called the following day by 'MasterCard'. The calls turned out to be a clever scam which can easily fool you into believing the calls are from the fraud department of the company that has issued your credit or charge card - but beware they are not - they are from scammers.

How does the scam work?
The person calling says. "This is Carl Patterson (any name) and I'm calling from the Security and Fraud Department at VISA. My badge number is 2460. Your card has been flagged for an unusual purchase pattern, and I'm calling to verify. Did you purchase an Anti-Telemarketing Company device or any expensive item, for £497.99 from a marketing company based in [any town is mentioned]". When you say 'No' you have not made that purchase, the caller continues with "Then we will be issuing a credit to your card account. This is a company we have been watching and the charges range from £297 to £487 just under the £500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to [they give you your address], is this correct?" When you reply, 'Yes' to confirm that is your address, the caller continues "I will be starting a fraud investigation, if you have any questions, you should call the 0800 number listed on your card and ask for Security. You will need to refer to this Control number. They then give you a 6-digit number following which the caller says "'Do you need me to repeat it?"

The caller then says he needs to verify you are in possession of your card and this is the stage where the scam takes place as up till now they have requested nothing! They then ask you to turn your card over. There are additional security numbers on the back of the card - the first four numbers are 1234 or whatever, as they have your main card number anyway. The next three numbers are the security numbers that verify that you are in possession of the card. These are the numbers they are really after as these are the numbers you use to make internet purchases to prove you have the card. The caller will then say "Read me those three numbers please". When you do so, he then says "That is correct. I just needed to verify that the card has not been lost or stolen, and that you still have the card. Do you have any other questions? Don't hesitate to call back if you do".

V8 Register - MG Car Club
During this call you actually say very little and the caller speaks in an authoritative manner and never asks for or tells you the full card number on the front of your card. But after we were called, we each telephoned back using the card enquiry number on the back of the card within 20 minutes to ask a question - and are we glad we did! The real VISA security department told me it was a scam and that in the last 15 minutes a new purchase of £497.99 was put on my card. I then made a real fraud report and closed the VISA card and they are reissuing the card with a new number. The key piece of information the scammer wants is the 3-digit number on the back of the card so he or his associates can make Internet purchases using your card. Once the first charge on your card made by the scammer goes through, they keep making further purchases charged to your account every few days. By the time you get your statement, you think the credit to your account promised by the "fraud department" (in reality the scammer in the initial call) is still due to be made, and it's harder to file a fraud report with the real fraud department of the card company.

The real VISA/MasterCard fraud departments both reinforced the point that they will never ask for anything about the card since they already know everything about the card as they issued it!!

Scammer called again the following day aiming to carry out the scam on another card!
What makes this even more remarkable is that on the following day I got a call from Jason Richardson of MasterCard with a word by word repeat of the VISA scam. This time I didn't let him finish, I hung up. I filed a police report (as instructed by VISA), and they said they are taking several of these reports daily and encouraged me to tell friends, relatives and colleagues ...... so I urge you to please PASS THIS CAUTION ON to family members, friends and fellow V8 Register members.

Footnote - on previous occasions when we have published warnings of Internet scams, one or two members have, in a slightly patronising way, brushed the report aside saying it's already well known and has been in circulation for many years. Well that may be so but in this case card fraud is happening in the "here and now" and is increasing at an alarming rate, so we feel this caution should be published for the benefit of our members.