New Twist on Credit Card Scam
As we approach the holiday season the credit card scams have kicked into high gear. We were made aware that a slick approach that originated in 2003 is once again gaining momentum. It sounds plausible as the caller provides the card holder with information and asks for only the one piece they need to make a fraudulent Internet or phone transaction. This scam is affecting MasterCard and VISA customers alike. We encourage clients to pass this information along to your customers and members as the scenario can sound very convincing. 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?”
The cardholder answers: “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 (caller provides cardholder address), is that correct?”
Cardholder answers: “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 provides a 6 digit number) “Do you need me to read it again?”
Here's the IMPORTANT part on how the scam works.
The caller continues:
“I need to verify you are in possession of your card. Please turn your card over and look for some numbers. There are 7 numbers on the back of all credit cards the first four are part of your card number, the next 3 are the security numbers that verify you are the possessor of the card. Please read me the 3 numbers.”
The cardholder complies with the request.
The caller continues:
“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?”
The cardholder replies: “No I don’t have any questions.”
The caller concludes the conversation with:
“Thank you and don’t hesitate to call back if you do.”
The cardholder actually says very little and the thief never asked for or told the cardholder the card number. The cardholder that received the call turned around 20 minutes later and placed a call to the real VISA security department and learned the prior conversation was a scam and in the past 15 minutes a new purchase of $497.99 had been charged to their card.
Long story - short - a true fraud report was filed, the VISA account was closed and a new card was re-issued. What the scammers want is the 3-digit CV2 number on the back of the credit card that is used to make as a verification code for Internet and phone transactions. Consumers should be advised to end any calls they receive from the Security and Fraud Department and to then contact VISA or MasterCard directly for verification of the original request. The actual credit card company will never ask for any information since they issued the cards and have the data on file. Consumers should also be advised to file a police report of the scam.
FDIC ALSO OFFERS IDENTITY THEFT HELP
FDIC unveiled an online multimedia presentation about identity theft — "Don't Be an Online Victim: How to Guard Against Internet Thieves and Electronic Scams" — that is available on the agency's Web site. It provides information on steps consumers should take to secure their computer and protect themselves from identity theft, as well as what they should do if they are victimized by the crime. Financial institutions are encouraged to make the link available to customers on their Web sites. View the presentation.
FRAUD AND IDENTITY THEFT SCAMS
Suspicious Emails
At BankNewport, we are committed to your privacy and the security of your account information. Although we may send you emails from time to time to inform you about new site features and important updates, BankNewport will never email you to ask for verification or updating of sensitive information such as account numbers, PIN Numbers, user names, passwords, or social security numbers.
If you receive a suspicious email asking for sensitive BankNewport account information, do not reply and do not click any of the links inside the message.
Please forward a copy of the email to us at abuse@banknewport.com and immediately contact our Direct Banking Center at 401-845-2265 or toll free outside the Newport County area at 1-877-709-2265.
Lottery Scams
Lottery scams are generally telemarketing and Internet scams that target consumers, informing them they are winners of a lottery or sweepstakes. Often times, variations of this scam originate from other countries such as Africa, Australia, Canada, the United Kingdom, or Spain and generally target older adults.
- Consumers are told that they must pay the taxes, handling fees or conversion fees on the winnings before they can receive their jackpot.
- Consumers are asked to mail or wire a large sum of money to a location outside of the United States, and consumers may never receive any other correspondence.
- In a variation of the scheme, consumers may receive a Certified Check in the mail for a large sum of money, which they deposit into their account.
- The Certified Check turns out to be counterfeit and is charged back to the consumer’s account.
Advance Fee Scam
Consumer receives a letter, fax or e-mail asking for assistance to transfer funds from a foreign country to the United States for safekeeping.
- In appreciation of the consumer’s assistance, they are promised a percentage of the funds-often millions of dollars.
- Consumer is asked to provide an initial payment to secure the transaction (the advance fee), which is then followed by additional taxes, fees, etc.
- Consumers never receive the promised percentage of the funds.
- In variations of this scheme, the fraudster will send worthless checks that look legitimate to the consumer for deposit with a large portion being wired to another location. Once the checks are deposited, the consumer soon discovers they are left with an overdrawn account.
Internet Sale Scam
Consumer advertises an item for sale on the Internet and a buyer offers consumer’s asking price.
- Consumer is advised a bank check will be sent in advance to pay for the item. When the check is received it is for more money than the agreed upon sale price.
- Consumer contacts the buyer who states “the bank made a mistake” and asks the consumer to send back the difference via wire transfer.
- The money is sent via the wire, and the next day the bank check is returned as fraud and the full amount is deducted from the consumer’s bank account.
- Consumer is left with a large negative account balance and the buyer cannot be located.
Tips for Selling Merchandise Over the Internet
Before selling expensive merchandise over the Internet or through newspaper ads, remember the following basic tips that can help protect you from being a victim of various fraud crimes.
- Be cautious of dealing with potential buyers who agree to buy the merchandise unseen, especially if you are selling items such as a vehicle, computer equipment, electronic equipment or other high-end items.
- If the purchaser indicates he is overseas or planning to ship the merchandise overseas consider this a major red flag of potential fraud.
- A sale made over the Internet should not ask for you, the seller, to provide funds back to the purchaser.
- If you receive a check that claims to be an “official” Bank Check for an amount greater than the purchase with a request to wire transfer the excess funds back to the purchaser or another party, this should be a red flag that the transaction is potentially fraudulent.
- Remember that any check can be counterfeited or altered, including checks claiming to be “official” Bank Checks, Cashier’s Checks, Certified Checks, Personal Money Orders or US Postal Money Orders. As the depositor, you can be held responsible for the overdrafts or losses of the deposited check item if it is not honored by the drawing bank, even if the check hold on the item has expired and your bank has made the funds available to you. Always ask to talk to your bank’s fraud prevention department and explain the details of the transaction to them.
If You Become a Victim
Before following through on any suspicious transaction, make sure to:
- Research the source thoroughly.
- Ask for help from a BankNewport employee at any branch location. Let us know that you have a concern about a check before you make a deposit.
- Call BankNewport’s Security Department at (401) 845-8717 or 800-234-8586 (outside Newport County.)
If you think you might be a victim of one of these scams or suspect fraudulent activity on your BankNewport account, follow these steps:
- Call BankNewport’s Security Department immediately to report the issue at (401) 845-8717.
- Contact your local law enforcement office.
Computer Safety
FDIC unveiled an online multimedia presentation about identity theft — "Don't Be an Online Victim: How to Guard Against Internet Thieves and Electronic Scams" — that is available on the agency's Web site. It provides information on steps consumers should take to secure their computer and protect themselves from identity theft, as well as what they should do if they are victimized by the crime. Financial institutions are encouraged to make the link available to customers on their Web sites. View the presentation.
Introduction
The computer and the Internet have become an essential part of our everyday lives, but it is not without its vulnerabilities. BankNewport is committed to protecting our customers, which includes protecting your information as well as providing information on how to protect yourself. There are many ways you can safeguard your good name and credit. Have you done everything that you can to secure the personal information on your computer?
Below is information dedicated to current trends regarding computer safety:
What is Spyware?
Spyware is a form of software that collects personal and confidential information about a person or organization without their proper knowledge or informed consent, and reports it to a third party. Users may intentionally install Spyware without understanding the full ramifications of their actions. A user may be required to accept an End User Licensing Agreement (EULA), which often does not clearly inform the user about the extent or manner in which information is collected.
Spyware can be installed through the following methods:
- Downloaded with other Internet downloads in a practice called “bundling”.
- Downloaded by users who were persuaded that the technology offers a benefit. Some Spyware claims to offer increased productivity, virus scanning capabilities or other benefits.
- Installed through an Internet browsing technique called “drive-by downloads”. Spyware is installed when a user simply visits a Web site, believing it is necessary in order to view the Web page.
- Automatically downloaded when users open or view unsolicited e-mail messages.
Recommended actions to prevent Spyware
- Customers can prevent and detect spyware by:
- Installing and periodically updating anti-Spyware, virus protection and firewall software.
- Adjusting browser settings to prompt the user whenever a Web site tries to install a new program or Active-X control. Active-X is a set of instructions that will automatically run on a computer when downloaded by the browser.
- Carefully reading all End User Licensing Agreements and avoiding downloading software when licensing agreements are difficult to understand.
- Maintaining patches to operating systems and browsers.
- Not opening e-mail from untrustworthy sources.