Note: The callers do not ask for your credit card number; they already have it.

The scam works like this:

The 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 the transaction. The card used was your VISA card that 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 $297.00 to $497.99, just under the $500.00 purchase pattern that flags most credit cards. Before your next statement, the credit will be sent to (caller 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 800 number listed on the back of your card (1-800-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.” The caller will ask you to turn your card over and look for some numbers. There are seven (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”, and hangs up.

The cardholder actually says very little, and the caller never asks for or tells you the card number.

The real VISA® will never ask for anything on the card, they already know the information. If you give the scammers your 3-digit 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.

Social Security Phishing Scam

The Social Security Administration issued a warning about a new e-mail scam being circulated with the subject, “Cost-of-Living for 2007 Update.” The message appears to be from the Social Security Administration and provides information about the benefit increase for 2007. It contains the following, “NOTE: We now need you to update your personal information. If this is not completed by November 11, 2006, we will be forced to suspend your account indefinitely.” The reader is then directed to a Web site designed to look like Social Security’s Internet Web site.  Once directed to the phony Web site, the individual is asked to register for a password and to confirm their identity by providing personal information such as the individual’s Social Security number, bank account information, and credit card information.

You should never provide your Social Security number or other personal information over the Internet or by telephone unless you are extremely confident of the source to whom you are providing the information.

To report receipt of this e-mail message or other suspicious activity to Social Security’s Office of Inspector General, please call the OIG Hotline at 1-800-269-0271. A Public Fraud Reporting form is also available online at OIG’s Web site, www.socialsecurity.gov/oig.