The fraudulent fraud phone call scam

A fraudulent phone call about fraud on an account? This week’s scam tip seems almost too bizarre to be true, but in a recent blog post by the Federal Trade Commission (FTC), Alvaro Puig, Consumer Education Specialist reported that identity thieves are impersonating credit card company fraud departments.

The fake fraud phone call

With millions of credit card numbers having been stolen over the past couple of years, credit card companies have become more diligent in their fraud detection processes. Identity thieves are well aware of the increased scrutiny each credit card transaction receives, so now they’re looking for ways to avoid detection. Enter the fake fraud phone call.

Here’s how the scam works according to the FTC. The scammer says he’s calling from your credit card’s security or fraud department. He says they’ve flagged suspicious activity on your card. He tells you about a transaction and asks whether you authorized it. When you say you didn’t authorize the transaction, he says he’ll open a fraud investigation, gives you a case reference number, and tells you to call the phone number on your credit card if you have any questions. So far, you haven’t given out any information, but that’s about to change.

The next step is for the caller to tell you he needs to verify that you’re in possession of the card and asks for the security code on the back of the card. That number is the one piece of information standing between you and a string of fraudulent charges on your card.

Tips to avoid the fraud phone call scam

• Don’t give the caller any information about your account – even if he already knows some of the details.
• Hang up the phone. Call the customer service number on the back of your credit card. Talk to the fraud or security department and ask about the unauthorized charges the caller told you about.
• Report the suspicious call to the FTC at ftc.gov/complaint or 1-877-FTC-HELP.