Beware the Latest Credit Card Scam
If you get a call from your credit card company informing you that your account has been flagged because of suspicious activity, be skeptical.
A current scam works like this: A fraudster, claiming to be from the security department of a credit card company, tells the consumer he is checking unusual account activity. He may even offer a badge number. Then, he tells the consumer that a fake purchase, such as an $800 television from Best Buy, has been made on the card.
When the consumer says he did not make that purchase, the scammer explains that he is starting a fraud investigation and gives the consumer a "confirmation" number. He says he needs to verify that the consumer has the credit card and asks for the three numbers on the back of the card, known as the card identification number. He may already have the consumer's address and card number, and that verification code lets the fraudster ring up charges on the card.
Discover spokesman Matthew Towson, who says he is familiar with the scam, gives this advice:
• Card companies, including Discover, will never ask for a consumer's card identification number. Instead, they use security questions, such as mother's maiden name or the cardholder's high school.
• Consumers are not usually asked for card identification numbers unless they are making purchases over the phone or the Internet. Being asked for it in other situations is a tip-off to fraud.
• If a consumer calls Discover from a phone other than his home phone, the company will probably ask for the account number, because it doesn't match the phone number, and follow up with other security questions. But customer service representatives would not ask for the card identification number.
My advice: If you get a call from someone claiming to be from your credit card company, hang up and call the company yourself, using the number listed on the back of your card. That way, you'll know whom you're talking to.
Tags: credit cards | fraud
Tools: 
Share
|
| Comments (10) | Print
Reader Comments
j crew
is there any scams on j crew
Not just Credit Cards
Fraudulent checks were printed and cashed in another city that went through our account. We caught this early when only four checks had been cashed. The checks had our B of A routing number and our account number with similar but ficticious names and a similar but non-existent address. One of the checks had my wife's correct driver's license number on it, obviously written by the clerk who cashed it - so a fake driver's license had also been created. B of A was very cooperative in immediately crediting us with the amounts that had been deducted from our account and in flagging the account as fraudulent so no more checks would be processed, but beyond that it was all up to us. We spent well over 6 weeks of work getting Affidavits notarized and submitted to B of A, Credit Reporting Agencies, a Check collection agency, police departments, etc., swearing we did not cash the checks and had no knowledge of who did. (This is not easy because nearly every organization has a different form.) Worse, one check was cashed at Walmart, which doesn't send your check through the Bank - they scan and collect the electronic information at the cash register and give the check back to you, so there was no copy of the fraudulent check cashed and therefore no false signatures, no false names or false bank image. They turned it over to a collection agency, which was rude and treated us like criminals, making it very difficult to get the paperwork submitted and "investigated" before finally backing off. Worse, now there was a fraudulent driver's license in use with my wife's real number and a similar name and address. We feared this id could be used in various criminal schemes and the police could issue a warrant for her arrest. The state driver's license bureau was very uncooperative, callous and belligerent in getting a new driver's license number issued. Local police did not want to handle the matter because the checks were not cashed here. Police in the city where they were cashed didn't care because it is routine and they don't have the manpower, plus we were not citizens of that city. But you need a police report for the affidavits. Only after great pressure did they take a police report and only gave us the number after repeated phone calls. We never discard checks or any sensitive information in the trash, shredding everything. But retail outlets often write down your number on checks. Plus, the check with the DL# is seen by many in the processing. Doctor's offices and others want to make copies of your DL. Beware! Do not allow anyone to write down your DL# or make a copy of your DL. Get a locking mailbox and use electronic statements with strong passwords and ids. This is a nightmare!
Credit Address Change
Last July (2008) I didn't notice that I had not received my Citicard Bank statement. However, I did realize that there was a problem when I did not receive my August statement. I called Citicard and was informed that it had been mailed to me but maybe the mail was slow. I replied that it was now three days longer than usual. After more reassurances from customer service, the representative said it had been sent to my home in Bakersfield on the usual date and I should be receiving it in a few days. Oops, I don't live in Bakersfield. After being transferred to the fraud department it was found that three charges totaling over $3,000 were on my August account for electronic equipment I did not buy. The person in the fraud division said she would remove those charges and contacted one of the credit agencies about the fraud and they notified the two other credit agencies. I asked for a copy of my July bill and they said it would it would be mailed to me...it wasn't or else it was mailed to Bakersfied. It took three more phone calls to have the July statement sent to me and there were three more electronic equipment charges for over $3000. After reporting this to the police and FTC and filling out a seven page document for Citicard, I assumed that was the end of the problem. It wasn't. Every month after this had the July fraudulent charges plus interest and late fees. This went on for five months with many phone calls to finally have my account straightened out.
Now, this problem was due to someone at Citicard changing my address without verifying this with me. How much trouble would it be to call the phone number on my account to verify if there really was an address change?
advertisement
