JACKSON – Just in time for the holidays, Mississippi Attorney General Jim Hood is warning businesses of a new credit card scam. Hood said a Jackson area business recently lost $10,000 in merchandise when the credit card purchase proved to be fraudulent.
Hood said the scam occurred when the proposed customer entered the store and attempted to make a purchase using a credit card. The credit card was denied and the customer offered to call the alleged credit card company’s customer service department.
The customer handed the phone to the sales clerk who was given verifiable information about the customer and then an authorization number to run the card through.
Once the transaction was complete, the customer left with the merchandise.
Hood said in cases like this, businesses don’t usually realize they’ve been scammed until it’s too late.
“Businesses should use only bank or company-issued customer service numbers,” Hood said. “Do not use customer service numbers provided by the potential purchaser and avoid off-line credit card purchases. This off-line credit card purchase allowed the proposed customer to leave with more than $10,000 in merchandise and equipment.”
Hood said there are many variations to this scam. They may include car rentals, gift card purchases or even cash advances at banks. The reason the scam works is because all of the purchases are made off-line.
“The proposed credit card customer service employee is not an employee, but is part of the scam,” Hood said.
Anyone who suspects they have been a victim of this scam or any other, should contact the Consumer Protection Division of the Attorney General’s Office at 1-800-281-4418.
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