Beware of Green Dot MoneyPak Scams!

April 25, 2013

Beware of Green Dot MoneyPak Scams!

Your BBB wants to remind you to beware of scammers using the Green Dot MoneyPak prepaid cards you can purchase at local stores. Using a prepaid card is a convenient way to pay bills online without threat of risk to your bank account. But scammers have found a way to get that money from you too! Green Dot spokesman states, “Fraudsters will call or email you saying that you won a lottery or can buy discount merchandise at their phony websites – but you need to pay fees to get your prize or purchase that merchandise via MoneyPak –and only MoneyPak, then they ask for the 14-digit code.” Once you have given them that code – the crooks can then transfer your MoneyPak funds to their own prepaid cards.

MoneyPak offers these 7 tips to help protect you from fraud!

    1. Never give your MoneyPak number to someone you don’t know.
    2. Never 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. To use your MoneyPak with PayPal or eBay or other online merchants, transfer the money to your PayPal account before you pay the merchant. Don’t email your MoneyPak number directly to any 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 this list of approved MoneyPak partners before you use your MoneyPak to pay.

To avoid falling for MoneyPak scams, consumers should:

  •  Be wary ofwebsites or Craigslist advertisements linking to websites where customers arespecifically asked to pay with a MoneyPak card.
  •  Never give their MoneyPak number to someone they don'tknow.
  • Remember that advance-fee loan offers are illegal andtargeted at customers and companies struggling with debt and poor credit.
  •  Remember that if you're told you have pay to a fee -- viaMoneyPak or wire transfer -- to collect a cash prize or sweepstakes winnings,you're being scammed.
  •  Avoid offers that don't accept credit card payments andrequire you to purchase a MoneyPak and provide the card number via email or byphone.
  •  Beware of websites requesting MoneyPak as a form ofpayment even if they display the MoneyPak or Green Dot logo. Consumers shouldcheck for a list of approved MoneyPakpartners.
  •   Treat their MoneyPak cards like cash. Unlike creditcards, MoneyPak transactions can never be reversed.

If you are aware of a possible scam, alert Green Dot. If you believe you are a victim of fraud contact your local police to file a claim and complain to your state’s consumer protection bureaus and the Federal Trade Commission.