AG: Credit card scam costs a MS business $10,000 - WLOX.com - The News for South Mississippi

AG: Credit card scam costs a MS business $10,000

JACKSON, MS (WLOX) -

JACKSON, MS (WLOX) - Attorney General Jim Hood is warning of a credit card scam that targets businesses. A Jackson area business recently lost $10,000 when a credit card sale proved to be fraudulent.

Hood said the way it works is when a customer attempts to make a purchase using a credit card, the card is first denied. The customer volunteers to make a phone call to the card company's customer service. The the customer then gives the phone to the sales representative.

After verifying certain information about the customer, the proposed credit card employee gives an authorization number to the salesman with instructions to run the card on the credit card machine. The ticket prints out, the customer signs it and leaves with the merchandise.

The business doesn't realize what has happened until it is too late, and they have become yet another victim of the scam.

"Businesses should use only bank or company issued customer service numbers. Do not use customer service numbers provided by the potential purchaser and avoid off-line credit card purchases," said Attorney General Jim Hood. "This off-line credit card purchase allowed the proposed customer to leave with more than $10,000 in merchandise equipment."

There are some variations to this scam. According to the AG, the scam can 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 so-called credit card employee on the phone is part of the scam.

Anyone who suspects they have been a victim of this scam or any other, should contact the Consumer Protection Division of the Attorney Generals Office at 1-800-281-4418.

Copyright 2010 WLOX. All rights reserved.

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