CVV2 Credit Card Scam: What You Should Know

Because credit card fraud is becoming such a hot issue for consumers, many merchants who accept credit card payments are beefing up their security. Some ask for your billing zip code to verify that your credit card is valid, while others ask for the CVV2 number-or security number-on the back of your card.

MasterCard, Visa, AmEx and Discover cards usually have a CVV2 number, which is usually two or three digits printed on the back of the card, near your signature. This code is unique to your card and is placed in the system with your credit card number, and is one of the safest ways to verify who you are and that you actually have the card. This way, even if a scam artist has stolen your account number, they can't necessarily use it for "card not present" transactions.

The CVV2 credit card scam began several months ago, and is increasing in frequency as more fraudulent users determine that this is the only way to effectively use stolen information. If they can input the CVV2 number online or over the phone, they have access to your entire available credit.

How the Scam Works

This credit card scam is quite ingenious, particularly for consumers who don't bother to verify callers when they answer the phone. The scam artist calls to inform the consumer that a charge on their credit card is suspected to be fraudulent. They'll ask if you purchased a $750 digital camera or a 2002 Ford Explorer-something that you probably didn't purchase.

When you exclaim that of course you didn't buy a $2,000 washing machine, they'll offer to return the money immediately if you can answer a few security questions. This is how an actual credit card company representative would handle the situation, so it sounds legitimate. They might ask you to verify a previous address or give your mother's maiden name. Even if they don't have that information, they'll agree with whatever you say.