[e-boadmin]

Interesting read over at MSNBC:
http://www.msnbc.msn.com/id/10837640/

... But a warning issued last week from the New York State Banking Department got me thinking twice. It warned of a new scam in which this code is the key. Here's how it works: Scammers, who have already obtained your credit card number in other ways, call your house pretending to be the fraud and security department of your credit card company. They sound very official (they may even provide you with a phony badge number) and they claim your card was flagged by security for demonstrating an unusual purchase pattern.
You deny making the purchase. Then the scam artist reassures you it will show up on your next statement. The scammer then gives you a phony control number to document the fraud claim and asks you to provide the three-digit security number from the card to prove that the card is in your possession.
Once you give that up, the scammer has you. He or she now has everything he needs to make a purchase with your card either over the phone or on the Internet. There's no clerk there to raise an eyebrow at the fact that John Doe he doesn't really look like Jane Smith. And since you've already been alerted to fraudulent activity on your account, you're less likely to call in the troops.


Checkout the full article, and let's discuss!

[st_hart]

Useful information. Thanks for sharing it here. That's scary. Now frauds are getting more and more advanced, they always renew their techniques And the law enforcers seems to be always some steps back from them.

[e-boadmin]

From my understanding, the merchants do NOT want you to ever store or "keep" the security codes - they are to be processed in real-time with the transaction, and aren't stored. That way, if a hacker gets into your system, they can't get the CVV2 code.

I think the moral is that anytime a company calls you pretending to be someone, get their information, then call the phone number on the back of your card, and initiate the process that way.

[st_hart]

Really? That's way the last 3 digits are called the security codes?
What about PayPal? Don't they keep the code either, as they will always use it to process our online transaction/payment?