Scam alert: Caller wants card's security code

Here's another timely tip from our friends at Silver Planet.

This trick has already made the rounds, but scammers seem to have a fondness for this one because it's being reported again. We want you to stay alert and avoid becoming ensnared.

The trap involves a phone call from someone claiming to be with your credit card company. The call sounds legit because the person provides you with all the information about your card, except for one vital component: the three-digit security code on the back. Here's how the scam works:

1. The caller says, “This is (name), and I’m calling from the Security and Fraud Department at VISA. My badge number is (number). Your card has been flagged for an unusual purchase pattern, and I’m calling to verify. This would be on your VISA card issued by (bank). Did you purchase an Anti-Telemarketing Device for $497.99 from a marketing company based in Arizona?”

2. When you say “no,” the caller continues: “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 (your address). Is that correct?”

3. 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 six-digit number. “Do you need me to read it again?”

4. Now for the important part. The caller needs to “verify you are in possession of your card.” You’re asked to “turn your card over and look for some numbers. There are seven numbers. The first four are your card number, the next three are the security numbers that verify you are in possession of the card. These are the numbers you use to make Internet purchases to prove you have the card. Read me the three numbers.” After you say the three numbers, the caller will 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.

During the call, you actually say very little—only the three-digit security code on the back of the card. But your next credit card statement will show the damage. That’s because criminals don’t need the actual credit cards they’re calling about, only the security code. With that code, they can make purchases over the phone, through mail order, and online.

What you should know is that your issuing card company already has this security code, so they will never ask you for it.

If you receive one of these calls, and aren’t sure what to do, tell them you have to call your credit card company directly for verification. Don’t use any phone numbers the caller provides; look on the back of your card for the real deal,