Thursday , December 13 2018
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Fraud : Credit Card Loss Protection Insurance Phone Scams

An old method but it continues. One company, offering credit card loss insurance, calls consumers and using scare tactics or misrepresentation says:

  • they are a representative of your credit card company such as VISA or MasterCard;
  • that you must have credit card protection;
  • that they need to verify your credit card information;
  • that they have been instructed by the Federal Trade Commission to call credit card holders to obtain their credit card numbers and expiration dates;
  • that your credit card numbers may be wrong and you have to divulge your numbers in order to receive credit card protection;
  • that they are calling to check the security of your credit card number for possible fraud;
  • that they or anyone could get your credit card number off the Internet at anytime and therefore, you need to buy credit card fraud protection with a lifetime guarantee;
  • that you are liable for more than $50 of unauthorized charges on your credit card account;
  • tell you that a computer bug could make it easy for thieves to place unauthorized charges on your credit card account;
  • tell you (or imply) that they are calling from “the security department” and want to activate the protection features on your new card.
  • that credit card protection would cost only $99, and
  • that you could cancel within 90 days.


Regardless of your decision, they deduct from $289 to $329 from your credit card, without authorization, for protection which is already available by law from your card issuer. Plans like what they offer are both grossly overpriced and not necessary in the first place. In fact, federal law limits consumers’ liability for unauthorized charges to $50 per credit card, and there is no time limit for reporting loss, theft, or unauthorized use of a credit card.

They purport to protect you from financial loss resulting from the loss or theft of your credit cards. In addition, they falsely state that you have only 48 hours to report the loss or unauthorized use of your credit card to avoid liability for the charges. Cancellation of the service is virtually impossible due to delays, excuses and busy telephone lines.


Finally, i want to share with you an example of that fraud conversation between convictor and victim below;


Shane Douglas: “Ma’am this is Shane Douglas from First Capital Visa MasterCard. It’s regarding the security on your account. We’ve had a problem with computer fraud.”
Shane: “And you’re also going to be issued your verification number by a verification officer. So I do need you to get one of your cards, a pen and a paper while I hold on for you ma’am…I will verify one of your accounts to be sure you are the proper cardholder and you are in good standings.”
Cooperating Witness (“CW”): “You’re going to tell me what my number is.”
Shane: “Yes, yes, we have that information ma’am.”
Shane: “You wanted me to read you your number ma’am, beginning with the 4? Is that what you meant?
CW: Yes.
Shane: “Okay. That is against the law ma’am. Until I know I am speaking to the proper cardholder.”
CW: So I need to read it to you?
Shane: “Yes. There is a federal law, ma’am.”
Shane: “And you’re speaking with Officer Shane Douglas…First Capital is the Fraud Division of Visa MasterCard.”
CW: “That’s called First Capital?”
Shane: “Yes. We are the Fraud Division of Visa MasterCard.”
Shane: “So you want the address of the Fraud Division?”
CW: “Right….”
Shane: “Okay. I am going to just okay that with my supervisor…And it will take a half a second.”
CW: Alrighty.
VOICE IN BACKGROUND: “Make one up. Make one up.”
Shane: “Yes, ma’am? I’m sorry about that. I had to speak with a supervisor to make sure that information can be authorized…Okay? I am prepared to give that to you now.”
CW: All right. I’ve got a pencil.
Shane (giving incorrect address): “Okay. The offices are 1143…Patrick Street, Buffalo, New York and that is Suite 502.”
CW: “I feel real nervous about giving you my number over the phone. Can’t I mail it to you or something?”
Shane: “Ah, it’s a simple verification process, ma’am which all cardholders must go through—“
CW (after requesting a supervisor): “I’m kinda nervous about giving my number over the phone just ‘cause I don’t know who you are…”
Christopher Johnson (supervisor): “Well, it’s information we already have, we just have to make sure we verify it. I would love to be able to authorize him to read you the card number for you…but by federal law we’re, we’re just not required to do it, we can’t do it…But if it’s any consolation to you at all, unless you’re signing a sales draft, you cannot be held liable for any charges…It’s a simple verification process; it just goes into the computer to verify the information we already have.”
CW: “Are you an officer as well?”
Chris: “Yes, ma’am.”
CW: “But wouldn’t an officer work for a Sheriff’s Department or something–“
Chris: “No, you see, what happens is we go through a rigorous process over which they check everything out and you are issued a federal badge number at the end of it all. And that’s it. And we investigate fraud for Visa and MasterCard…We’re actually in Buffalo, New York. We’re the office right next door to the Visa and MasterCard office there.”
CW: “And then if I give you my number you send me what?”
Chris: “Okay. We send you your package. Okay? Which basically gets you your 100% coverage back again, but you have 30 days before making any final decision on anything anyway…It’s a zero-risk policy, ma’am; no one can make you take it.”
Chris “But we are required by federal law to tell you that you do not have your 100% protection any more. As we did every other Visa and MasterCard holder.”
CW: “When did it expire?”
Chris: “Last December Visa and MasterCard decided they would no longer be covering for computer fraud for the simple reason that they can no longer financially support it. It’s just — it’s so bad now.”
Chris: “…right now you are 100% liable on all charges unfortunately. See we want to get you your 100% coverage back again. You are protected for 30 days for free while you are reviewing the package and making your decision whether you wish to keep it or not…Anyway, like I said, the package comes to you in 10 days after verification by courier, at which point your 30 days of free coverage begins while you go through it and decide whether you want to keep it or not…And that’s it. You’re under no obligation whatsoever.”
CW: “Well, it sounds good and I would like to do it but I’m just, I’m just too afraid to–“
Chris: “I totally understand ma’am, but like I said, it cannot be used against you any shape, way or form, we’re the same company that has been protecting you all these years. We have been doing it for Visa and MasterCard for 13 years. I mean we are your security service. It’s a simple verification that cannot be used against you in any way. Just– we just have to make sure your the authorized cardholder before we can you out your package.”
Chris: “A credit card is basically nothing. I mean, ah, you know, just the number–“
CW: “Oh, well how come they–how come they always say make sure and rip up your receipts…”
Chris: “No, as, as long as you don’t sign it you’re fine.”
Chris: “Well, when hackers penetrate the database, ma’am, there’s not very much you can do about that.”
CW: “But I thought I wouldn’t be responsible anyway.”
Chris: “Up until December that was true…up until last December, if you were defrauded, you simply called a number on the back of your card and then Visa MasterCard would fax it over to us, we would investigate it for 48 hours at which point we would turn it over to the insurance company and they would take care of it…It’s just that they won’t cover it anymore.”
CW: “If I could mail you the money in or you could mail me something that would be great, but I really don’t feel” comfortable giving my number over the phone.
Chris: “Like I said, ma’am, it’s a simple verification that cannot be used against you in any way.”
CW: “Yeah, but this way I don’t have to stay awake at night worrying about it –“
Chris: “– because unfortunately without going through verification it does go in as a decline and in the event you are defrauded it basically says that you have been explained everything and you are assuming 100% liability on all charges.”


Source : crimes-of-persuasion

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