LONG BEACH, Wash. – Bankers are warning abut a new wrinkle in an old credit card scam.

Jerry Phillips, risk manager for Bank of Pacific, said it is “pretty slick since the scammer provides you with all the information, except the one piece (of information) he wants.”

“The callers do not ask for your card number; they already have it. The scammers have already gotten your card number by good old-fashioned ‘dumpster diving’ or maybe by using their cell phone to take a picture of your card while you were using it at a store or restaurant.”

Phillips explained how the scam works:

The person calling introduces himself and says he’s from the security and fraud department at VISA or Master Card. He gives a phony badge number to sound official and then states that your card has been flagged for an unusual purchase pattern.

He says he’s calling to verify a purchase of an Anti-Telemarketing Device for $497.99 from a company based in Arizona.

When cardholder says he or she has made no such purchase, the caller continues with, “Then we will be issuing a credit to your account. This is a company we have been watching and the charges range from $297 to $497, just under the $300 or $500 purchase amount that flags most cards.”

The scammer says that before your next statement, the credit will be sent to your address.

The scammer then says, “I will be starting a fraud investigation. If you have any questions, you should call the 1-800 number listed on the back of your card and ask for security.” The scammer then gives a meaningless reference code number.

Then comes the important part.

“The caller then says, ‘I need to verify you are in possession of your card’ and he’ll ask you to turn your card over and look for some numbers.” There are seven numbers; the first four are the last four digits of your card number, but the next three are the security numbers that verify you are the possessor of the card. These are the numbers the scammer does not have. Once you read them to him, he can begin using your card at will.

After the scammer has the three critical numbers, he’ll say, “That is correct, I just needed to verify that the card has not been lost or stolen and that you still have your card. Do you have any other questions?” The scammer then politely says, “Don’t hesitate to call back if you have any questions,” and hangs up.

Phillips said after a call from a scammer to a bank employee May 28, within 20 minutes he called VISA to ask question the conversation. “Am I glad I did! The actual VISA Security Department told us it was a scam and that in the last 15 minutes, a new purchase of $497.99 was charged to our card.”

“To make a long story short, we made a fraud report and closed the VISA account. VISA is reissuing us a new number. What the scammers want is the three-digit PIN on the back of the card. Don’t give it to them. Instead, tell them you’ll call VISA or Master Card directly for verification of their conversation.”

“Had I waited for my statement and then discovered the fraudulent charge, by then it’s almost too late and much more difficult to actually file a fraud report.” Phillips said, “What makes this more remarkable is that on the next Thursday, I got a call from a ‘Jason Richardson of Master Card’ with a word-for-word repeat of the VISA scam. This time I didn’t let him finish. I hung up and filed a police report, as instructed by VISA.”

For more information on this and other fraudulent scams, Jerry Phillips can be reached at Bank of Pacific at (360) 642-1088 or by e-mail at (jphillips@thebankofpacific.com).