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Credit Card Charges


Credit Card Charges: How the Scam Works

Imagine this scenario: one day you receive a call from your credit card company -  whether that's VISA, Mastercard, or American Express. Let's say it's VISA, for this exercise. You know the call it's from the real company because you clearly see "VISA Security Department" showing up on your call display. You pick up.

"This is Jamie from the VISA Fraud Protection Department", she says. "Sorry to bother you, but there has been some suspicious activity on your card that we believe this might be fraudulent. Did you just purchase gas of $87 at a station in Burbank, California?"

Shocked but thankful for the call, you hurry to respond with a solid no. "We thought so, it looked too weird. Did you lose your wallet lately?", Jamie adds.

Confused, you're looking around the room for your wallet and see it on the table. After you confirm that you do have your wallet and that you are a victim of potential fraud, the credit card lady asks if you are in the possession of your credit card. Of course, you do - thank God, you think.

"We need to confirm your identity. Do you mind if I ask you a couple of security questions before we proceed?", Jamie says. The conversation sounds exactly like any legitimate credit card company rep would have it, so you cooperate. The phone's caller ID displayed "Visa Security Department", remember?

The first question that Jamie has for you is to confirm your credit card number and then the three digits on the back. You read them to her and she says "That's correct." She also informs you that your money will be refunded in five business days. Little do you know that the caller is not working for the credit card company but is just a scammer who uses high confidence and official verbiage to victimize people all day.

The money won't be refunded and you will be faced with several new charges. Scammers can get the names and the phone numbers from social media or subscribers lists that are sold to third parties. All they need is the credit card number and the three security digits on the back that really grant him access to everything. If there is room for more fraud, the crook will ask more personal information over the phone, which could also lead to identity theft.


Why Is Your Caller ID Showing the Name of the Bank?

The question is, however, why does the call display on your phone show the name of the credit card company, the bank or even the local Police in some cases? The scammers do not work for them, don't worry. They use a trick called Caller ID Spoofing, fraudulent operation that we've been warning you about in the past. If you don't know what it is, let's take a look.

Watch the video below to see how the Caller ID Spoofing works:

How Caller ID Spoofing Works Video

Sometimes, if the criminals have the full number of the credit card but lack the 3 digits on the back, they get the victim's trust by reading the last four numbers on the card from the beginning of the call. Beware of these calls and avoid getting your credit card maxed out and your identity stolen.


Credit Card Charges Call: How to Avoid

The only reason you should ever need to give those numbers is if you're making a purchase from a merchant that you know about. If your credit card company wants to confirm your identity, they'll use things like your birthday or postal code, not sensitive banking information.

If you're skeptical, you can always hang up and dial the number on the back of your card. That way, you can be sure of whom you're talking to. Avoid ruining your credit by not giving personal information to anybody.


Credit Card Charges Call: How to Report

Make your family and friends aware of the Credit Card Charges Scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission (FTC) using the link below:

Report To The FTC Here


How to protect yourself more:

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You'll receive periodic emails and we promise not to spam. Last but not least, use the Comments section below to expose other scammers.


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Educate yourself with the videos below:


1. Top 5 Amazon Scams in 2020


2. Top 5 PayPal Scams in 2020


3. The Nigerian Scam [Docu-Drama]

This movie shows how a victim lost over $30,000 to an intricate scheme which is still around years later.

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