|
In addition to more generalized advice on getting smart and avoiding fraud, here are some “Top Ten Tips” for ensuring that you or your loved ones do not fall victim to fraud.
- Before buying any stock, check out the company’s financial statements on the SEC’s web site.
- Read “Pro Forma” Financial Information: Tips for investors.
- Learn who is legitimate and who is not.
- Gather all information you can – it matters.
- Have a look at our “Stock Market Fraud” checklist.
- Carefully analyze analyst recommendations.
- Affinity fraud: how to avoid investment scams that target groups.
- Check out brokers and investment advisers.
- Avoid Internet investment scams.
- If you are in doubt, contact the SEC.
A new twist to the credit card phone scam.
The callers do not ask for your credit card number-they already have it!
The scam works like this:
Caller: '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 ?'
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 to $497, just under the $500 purchase pattern that flags most cards. Before your next statement, the credit will be sent to (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 1- 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'. He'll ask 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 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 if you do, and hangs up.
You actually say very little, and they never ask for or tell you the Card number. Charges to your card are usually made within a few minutes after you hang up.
What the scammers want is the 3-digit PIN number on the back of the card.
Don't give it to them.
Instead, tell them you'll call VISA or Master card directly for verification of their conversation. VISA or MasterCard will never ask for anything on the card as they already know the information since they issued the card! If you give the scammers your 3 Digit PIN 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, and by then it's almost too late and/or more difficult to actually file a fraud report.
The best protection against these types of telephone schemes for obtaining sensitive credit card information is to always verify the identities of the people with whom you speak. If you have security questions or concerns about your credit card, call the financial institution who issued your card directly. If someone contacts you by phone about your credit card, ask the caller to provide his name, department, and extension, then hang up and call him back through the phone number listed on your credit card or billing statement.
In addition to the latest PIN scam by fraudsters, the below warning signs of telephone scams have been reported by the FBI as indicators of telemarketing fraud:
FBI RED FLAGS ON TELEMARKETING SCAMS:
PREPARE TO HANG UP THE PHONE:
- "You must act 'now' or the offer won't be good."
- "You've won a 'free' gift, vacation, or prize."
- "You don't need to check out the company with anyone."
- "You don't need any written information about their company or their references."
- "You can't afford to miss this 'high-profit, no-risk' offer."
If you hear this or anything else that sounds too good to be true, hang up the phone!
Stop phone bill third-party charges
You can ask your carrier to block these charges.
AT&T 800-288-2747
Comcast 800-266-2278
Quest 800-491-0118
Verizon 800-837-4966
Suspicious telephone calls claiming to be from the FDIC
Callers say that the call recipient is delinquent in payment of a loan
that was applied for over the Internet or made through a payday lender. The
loan may or may not actually exist. The caller attempts to authenticate the
claim by providing sensitive personal information, such as name, Social Security
number, and date of birth, supposedly taken from the loan application.
You are then strongly urged to make a payment over the phone to “avoid a lawsuit
and possible arrest.” In some instances, the caller is said to sound aggressive and
threatening.
These calls are fraudulent. They are an attempt to steal money or collect personal
identifying information.
If a caller demonstrates that he or she has your sensitive personal information, such as
Social Security number, date of birth, and bank account numbers, you are probably the
victim of identity theft and should review your credit reports for signs of possible fraud.
You should consider placing a “fraud alert” on your credit reports. This can be
done by contacting one of the three consumer reporting companies listed below.
Only one of the three companies needs to be contacted. That company is required
to contact the other two, which will place an alert on their versions of the report.
TransUnion: 1-800-680-7289
Equifax: 1-800-525-6285
Experian: 1-888-397-3742 |