Today on MyMoneyLife with Chuck Bentley

Want to hear the latest credit card scam?

Let’s say you get a call from someone saying he’s from the Security and Fraud Department at MasterCard or VISA.

He identifies himself and says your card’s been flagged for an unusual $500 purchase.   You tell him that no such purchase was ever made.

He then says a credit in the form of a check will be sent to you, and he states your address correctly.

The man also informs you that he’s opening a fraud investigation and he gives you a 6-digit control number for your specific case.

So, you’re thrilled that you’re getting some money back and you’re happy to cooperate.  He says he needs just one more thing.

To verify that you actually have the credit card, he asks you for that little 3 digit number on the back of the card.  So, you read him the 3 numbers.  He says thank you and hangs up.

Well, what you don’t realize is that the entire phone call was about getting those three little numbers. You’ve just enabled a scam artist to buy thousands of dollars worth of merchandise by phone or online with your credit card

You see, he already had your credit card number, and he probably purchased it from a database hacker or an identity thief.  The 3-digit pin simply makes it easier to go forward and use the credit card.

Now, the moral of the story is this: never give out private information over the telephone, unless you originate the call to make the purchase from a company that you actually know.

At MoneyLife, we want to help you manage your money wisely.  Find out more by visiting Crown.org.

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