Economic Crime Journal

Economic Crime Journal

Dr. David Murphy is a Certified Fraud Specialist and Certified Public Accountant and is a member of the Board of Regents of the Association of Certified Fraud Specialists. In addition, he has served as the Senior Anti-corruption Advisor to the Controller General of Peru and the government of Bulgaria. He was also the director of a two-year USAID anti-corruption graduate education project in Bolivia and consulted to the Central Bank of the Philippines in the wake of a major bank fraud in Manila.

Other Posts:

How to Catch Fraudulent Financial Reporting (11/16/2009)
ASIS Economic Crime Council Highlights LC's Program (11/06/2009)
Fraud on Steroids (10/19/2009)
U.S. Banking Fraud Interview (04/27/2009)
Financial Statement Fraud (04/17/2009)
Internet Fraud on the Rise (04/06/2009)
Fraud Close to Home (03/27/2009)
Can Economic Crime Be Eliminated? (03/20/2009)
Madoff and Ponzi (03/26/2009)

According to the National White Collar Crime Center a new telephone credit card scam is being perpetrated on individuals. The victim answers a phone call and someone says, “Hello, this is (name), and I am calling from Visa or MasterCard and my badge number is 12345. Your card ending in 9999 has been flagged for an unusual purchase pattern, and I am calling to verify this would be your card issued by (name of bank). Did you purchase an Anti-telemarketing Device for $497.99 from (company name) in Arizona?” When victim responds that no such purchase had been made then the perpetrator continues by saying, “We will be issuing a credit to your account. This is a company that we have been watching and they have been charging fraudulent purchases just under the $500 limit that flags most cards. Before your next statement the credit advise will be sent to (gives victim’s address), is that correct?” After confirming the address the caller asks the victim to verify the CVV code on the back of the card by saying, “I need to confirm that you are still in possession of your credit card. Would you please confirm the three number security code on the back of your credit card by reading the numbers to me?” The perpetrator already knew the victim’s name, address, and credit card number. Once the perpetrator has the CVV code he or she is able to assume the victim’s identity and fully utilize the card.

Never reveal confidential information over the phone or via the internet. If you receive a phone call requesting your credit card information hang up immediately and call the 800 number on the back of your credit card and report the incident.