My sister-in-law sent me this information about credit card fraud, and after verifying its authenticity on Snopes.com, I thought it was serious enough to pass on the warning. Many schemes are fairly recognizable as such, but this one could seem authentic, since the caller provides you with so much information that you could easily assume they were legitimate. Here’s how it works.

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. 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 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 last 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 last 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 thanks you and says, “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 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.

If you give the scammers your 3 Digit PIN Number, on your next statement you’ll see charges for purchases you didn’t make, and by then it’s almost too late and/or more difficult to file a fraud report.

Apparently this scam has been going on for several years, and unfortunately, it’s just one of many that are out there. Always remember that financial institutions will never call you or email you to ask you to verify your information. When in doubt – DON’T! Just hang up the phone or delete the email immediately.