This is long but valuable information.
 
 WARNING..New Credit Card Scam. This one is pretty slick since the
crooks provide YOU with all the information, except the one piece they
want.
  
  Note, the callers do not ask for your card number; they already have
it. This information is worth reading. By understanding how the VISA
&MasterCard Telephone Credit Card Scam works, you'll be better prepared
to protect yourself.   Here's a story passed along the www: by a concerned citizen:
   
 One of our employees was called on Wednesday from "VISA", and I was
called on Thursday from "MasterCard". 

The scam works like this: Person calling says, "This is (name), and
I'm calling from the Security and Fraud Department at VISA. My Badge
number is 12460 Your card has been flagged for an unusual purchase
pattern, and I'm calling to verify. This would be on your VISA card
which was issued by (name of bank). Did you purchase an
Anti-Telemarketing Device for $497.99 from a Marketing company based in
Arizona?" When you say "No", 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 $500
purchase pattern that flags most cards. Before your next statement, the
credit will be sent to (gives you your address), is that correct?"
  
  You say "yes". The caller continues - "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 (1-800-VISA) and ask for
Security.
  
  You will need to refer to this Control Number. The caller then gives
you a 6 digit number. "Do you need me to read it again?"
  
  Here's the IMPORTANT part on how the scam w orks. The caller then
says, "I need to verify you are in possession of your card". He'll ask
you to "turn your card over and look for some numbers". There are 7
numbers; the first 4 are part of your card number, the next 3 are the
security Numbers' that verify you are the possessor of the card. These
are the numbers you sometimes use to make Internet purchases to prove
you have the card. The caller will ask you to read the 3 numbers to
him.

 
  After you tell the caller the 3 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?" After
you say No, the caller then thanks you and states, "Don't hesitate to
call back if you do," and hangs up.
  
  You actually say very little, and they never ask for or tell you the
Card number. But after we were called on Wednesday, we called back
wit hin 20 minutes to ask a question. Are we glad we did! The REAL VISA
Security Department told us it was a scam and in the last 15 minutes a
new purchase of $497.99 was charged to our card.
  
  Long story made short - we made a real fraud report and closed the
VISA account. VISA is reissuing us a new number. What the scammers want
is the 3-digit PIN number 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. The real VISA told us that they
will never ask for anything on the card as they already know the information
since they issued the card! If you give the scammers your 3 Digit PIN
Number, you think you're receiving a credit. However, by the time you
get your statement you'll see charges for purchases you didn't make,
and by then it's almost to late and/or more difficult to actually file a
fraud report.
  
  What makes this more remarkable is that on Thursday, I got a call
from a "Jason Richardson of MasterCard" with a word-for-word repeat of
the VISA scam. This time I didn't let him finish. I hung up! We filed a
police report, as instructed by VISA. The police said they are taking
several of these reports daily! They also urged us to tell everybody we
know that this scam is happening.
  Please pass this on to all your family and friends. By informing each
other, we protect each other.