Scam alert--Protect three-digit credit card code

Hold on to your wallet and to the codes on your credit card. A new scam has emerged that is a new twist on a decades old credit card fraud.

It works like this. A caller claims to work for the fraud department at Visa or Mastercard and gives you a badge number. The fraudster then asks if you recently purchased an anti-telemarketing device for a little less than $500 (you say "no") and tells you the fraud department has been watching that company. The caller offers to block the charge and asks to verify your name, address, credit card number, and expiration date, and then asks for the three-digit code on the back of your credit card.

Don't give it out, nor should you confirm any other information the caller may claim to already have. Although many Internet retailers require the code as a security measure, crooks already may have stolen your credit card information from another source, such as a receipt or statement, but they need the three-digit code to complete a fraudulent trasaction.

If you receive a phone call, similar to the one described, industry experts advise hanging up in the middle of the call.