BBB Warning On Green Dot MoneyPaks

by Categorized: Scams Date:

Anyone have a problem with Green Dot MoneyPaks

Here’s a w warning from the Connecticut Better Business Bureau:

MoneyPaks are sold at local stores and major retailers, and provide a convenient way to pay bills online and make purchases on the Internet without risk to their bank accounts. However, scammers are moving away from asking for money to be sent by wire transfer and found ways to deceive consumers into giving out vital information that enables them to empty the prepaid cards of their contents.

Green Dot says fraudsters use a variety of methods to get consumers to purchase a MoneyPak and hand over its 14-digit security code, such as:
• FBI Internet scams – Your computer screen locks up while browsing and a notice appears supposedly from the FBI or other agency. The message says you’ve broken the law and warns that you will be subject to penalties if you don’t pay.
• Lottery scams – “Winners” are required to pay fees or taxes up front to collect.
• Friends or relatives in distress – They or their friends are out of the country, in trouble and need money.
• Online auction and classified ads – The seller only accepts a prepaid card and security number to pay for an item or deposit for rental property.
• Fake job offers – The would-be employer requires money to pay for a background check, uniform or training.
• Grant fraud –You have been selected for a substantial grant, and are required to deposit a check and send funds back by MoneyPak.
• Dating scams – After several weeks, someone you met on an online dating site says he or she is moving and needs money to help out.
• Prepaid loans – You’ve been pre-approved for a personal loan, but must make two payments in advance.
MoneyPak offers these 7 tips to help protect you from fraud:
1. Never give your MoneyPak number to someone you don’t know.
2. Do not give receipt information about your MoneyPak purchase to another party.

3. Use your MoneyPak only to reload your prepaid cards or accounts you control.

4. Refuse any offer that asks you to buy a MoneyPak and share the number or receipt information by email or phone.

5. Don’t email your MoneyPak number directly to any merchant. To use your MoneyPak with PayPal or eBay or other online merchants, transfer the money to your PayPal account before you pay the merchant.

6. Don’t use the MoneyPak to pay taxes or fees to claim “winnings” on a foreign lottery or prize promotion. Unless it’s an approved MoneyPak partner, don’t use MoneyPak for any offer that requires you to pay before you get the item.

7. Check a list of approved MoneyPak partners before you use your MoneyPak to pay.

Your BBB also recommends being careful where and how you purchase a MoneyPak card to ensure it is authentic.

If you are aware of a possible scam, alert Green Dot (www.greendot.com). If you believe you are a victim of fraud, contact your local police to file a claim, and contact Connecticut’s Department of Consumer Protection (www.ct.gov/dcp) and the Federal Trade Commission (www.ftc.gov).

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