Scammers Use Pre-Paid Cards to Separate You From Your Money

April 17, 2013
CBSMiami 
credit card news

Prepaid cards are a new way that scammers can get their hands on a person's money without targeting their bank account. In one case, consumer Shirley Hill received an email from the “American Pay Day Loan Company” notifying her that she had been approved for a loan. When she called the phone number provided, however, she was told that she would first have to prove her repayment ability. She carried out instructions to purchase three Green Dot MoneyPak cards and load them with $1,400 dollars. When Hill called back, she was asked to provide the number on the back of the cards, which she did. Since anyone who possesses the number on the back of a prepaid card can access the funds immediately, Hill's money was gone and untraceable. The Green Dot package warns customers that the company is not responsible for repayment of stolen funds. Green Dot also says that it is working on a safety system for the cards. This may include an alert to the cards' owners of suspicious activity.
Web Link







Abstract News © Copyright 2008-2013 INFORMATION, INC.
Powered by Information, Inc.

Stay Updated

Join the fight against predatory lending. Enter your e-mail to sign up for breaking news, action alerts, and CRL's original research.

   Please leave this field empty
  

Help Us End Predatory Lending

Predatory lending destroys family wealth, and preys on our most vulnerable communities. You can help us end abusive lending practices by donating to CRL, or by sharing our work with others.



`