Prepaid Debit Cards Becoming Choice Of Scammers

June 23, 2014
CBS 4 Denver 
credit card news
Scam artists are turning to prepaid debit cards. "The scammers are having to turn to these money cards more and more, so they're taking their time, they're talking slowly to seniors, they're walking them through the process," says Cary Johnson, consumer fraud investigator for the Jefferson County, Colo., district attorney's office.

In order to activate prepaid debit cards, federal law requires users to provide their name, birth date, and Social Security number. From there, the scammers want to get all the numbers associated with the cards so they can collect the money that has been loaded onto it. "There are some issued by traditional credit card companies … American Express has one. Visa for instance back some of these, and then there's others that are just private companies," says Kyle Hurst an instructor of Economics at the University of Colorado Denver.

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