Last month, Green Dot announced that it was making a change as to how money can be retrieved with its product. In the past a person merely needed to know a PIN number and could pick up money anywhere around the world. Now a person must have the actual card to retrieve it. Because of the easy access to money via using the PIN method, scammers picked up on this and were regularly trying to exploit senior citizens.
One way the scam worked is that the caller would pretend to be a representative from Publishers Clearing House and tell the victim that he/she had won millions of dollars and a new sports car. In order to have the money and car delivered though, a fee needed to be paid. That’s where use of the Green Dot card came in. The con artist would tell the victim to purchase a Green Dot card and to put several hundred dollars on it to pay for the shipping or insurance expense. Then the victim must call them with the PIN number. Of course, the sports car and prize money were never to be seen, but the con artist certainly got his/her money and was nowhere to be found.
Over time, Green Dot has come up with certain interventions, where con artists could not readily access funds. They were not 100% effective though and also created issues for law-abiding customers as well. Some of these intervention methods include the ability to block PIN number usage, when criminal transactions are identified; tracking where monies go, and negating monies being withdrawn from ATMs in countries overseas.
The cons have really made business quite difficult for Green Dot, government agencies, consumers, and law enforcement in the US and abroad, alike. Hopefully, with the new change of doing away with the PINS, consumers will be more protected from this sort of crime. The best prevention though is education and awareness of the various types of crime that exist and any loopholes that scammers may continually try to exploit. For any concerns regarding potential fraud, please contact your BBB so we may assist you! You may also visit Green Dot’s website for any new developments.
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