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Identity Theft: Clever phone scam to wheedle out your 'security code'

Barry Stamp
07 October 2009

Here's how a clever phone scam works.

This method of finding out your credit card 'security code' has been imported from the US, and tricks many, even the most cautious of us, so it's well worth a read.

The caller says he is calling from the fraud department at Visa or MasterCard, or even more convincingly, quotes the name of your credit card, because he already has your card number, and from that, the first four digits (called the 'BIN') he can determine which card company issued the card. He gives you his name, and a return telephone number, which is usually the actual 0800 number of your card company's fraud department.

He tells you that a recent transaction on your card ending (he tells you the last four digits of your card) has been flagged as one that doesn't fit your normal spending pattern, perhaps elaborating that it relates to several high value internet purchases somewhere else abroad. This news immediately raises your concern that you may have been the victim of identity fraud. He says the reason for calling to verify that it was not you who used the card.

He gives details of one of the transactions as an example. "Did you make a purchase of jewellery at At-ham Karbal Jewellers, in Dubai for 2,750 UAE Dirhams yesterday?"

After you naturally say 'No', the caller says, 'We thought not, so we will be issuing an immediate credit to your card account. We've seen several other fraudulent purchases at At-ham Karbal in Dubai and the charges are all below the £500 international purchase limit that flags most transactions and needs an international authorisation code. I need to send you a form to sign to confirm it was nothing to do with you, can I send this to you at (he gives you your address), is that correct?'

You say 'yes'.

The caller continues - 'If you have any other concerns, please let me know, as your card details have been compromised. I'll arrange for your existing card to be stopped and a new card issued, that'll take 2-3 weeks. Please don't use your old card until you get your new one, as it may be declined. If you have any problem at all, you should call the 0800 number listed on the back of your credit card statement and ask for Fraud, quoting the reference SE9077 (or other number).'

'You must remember to use this reference number. Would you like me to give it to you again?'

Then comes the sting. The caller says casually, 'I just need to verify you are in possession of your card'. He asks 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 next 3 is the security code that verify that you are the possessor of the card. The caller will ask you to read these 3 numbers to him.

If you fail to spot the scam and give him the security code, he will say, 'That's correct, I just needed to check 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 politely thanks you and hangs up.

You actually say very little - just a half a dozen words or so. You are never asked for your credit card number as the fraudster already has it, and your address, perhaps from the interception of a statement, or from a list purchased illegally. But to use your card, the fraudster needs the security code, and this is a clever way to get it.

If you get the call, or one just like it, just say you'll call your credit card company direct for verification of their conversation and ask for his extension number. Chances are he'll hang up right away.

And then ring your card company for real and tell them your card has been compromised, explain what has happened, and they really will stop your card and reissue a new one, very quickly.

To find out more about how you can protect yourself from scams like this, use our FREE Identity Theft Expert System, which gives you a list of personalised advice, based on your lifestyle.