Card scam is 'fiendishly clever'

NEW YORK (3/29/07)--A slick card scam that has made the rounds for several years seems to be resurfacing. It's slick because the caller provides information he already has about you and asks you to "verify" the information. Then he goes one step further and asks for the three-digit code on the back of your credit card.
It works like this: A caller claims to work for the fraud department at Visa or MasterCard and provides a badge number. The fraudster then asks if you recently purchased an anti-telemarketing device for nearly $500. You say "no." He tells you the fraud department has been watching that company.
He also offers to block the charge and asks to verify your name, address, credit card number and expiration date, then asks for the three digit code on the back of the credit card.
Don't give it out, nor should you confirm any other information the caller claims to already have. Many Internet retailers require the code as a security measure. But the crooks already may have stolen your credit card information from another source, such as a receipt or statement. They can't use your card until they get the three-digit code to complete their fraudulent transaction.
If you receive a similar phone call, hang up in the middle of the call, say industry experts. This scam has been going on since MasterCard began putting CVC2 security codes on the back of its card in 1997.
A credit card company does not ask a cardholder to disclose security codes or provide any information verifying a physical possession of a card.