Washington, D.C. – Consumer Federation of America and Green Dot Corporation are working together to educate consumers about how to avoid being victimized by crooks who target unsuspecting MoneyPak® customers. Today, Consumer Federation of America released new tips and an entertaining video to help consumers recognize the tell-tale signs of scams and fraudsters who deceitfully lure customers to provide their confidential MoneyPak info in exchange for the false promise of goods or services that they don’t intend to honor. “Scammers take advantage of many different payment systems,” said Susan Grant, CFA’s Director of Consumer Protection. “It’s a problem year-round, but during the holiday season it’s especially important for consumers to be aware of how crooks may try to get their hard-earned cash.”
MoneyPak, available at retailer locations nationwide, conveniently enables customers to load cash to their Green Dot or participating partner prepaid card via phone or online anytime. The MoneyPak can also be used to fund PayPal accounts without requiring access to a bank account. Fraudsters have discovered how to use MoneyPak to get cash from unsuspecting consumers. As noted on the MoneyPak packaging and on the company website, to protect yourself from fraud, consumers should treat the MoneyPak like cash and only use the MoneyPak number with businesses on the approved partner list.
As the tips and the video illustrate, the two most common fraud scenarios are variations of familiar scams. In the first, the consumer sees a great deal while shopping online, follows the crook’s instructions to pay via MoneyPak, and never receives the item. In the other, the scammer claims that the consumer has won a sweepstakes or lottery. To claim it, the consumer is told to pay taxes or other fees using MoneyPak. Unfortunately, no prize ever materializes. Typically, the scammer gets the MoneyPak number from the victim, transfers the funds to a prepaid card, and cashes it in at an ATM.
“We want consumers to understand how MoneyPak works and how to use it safely and with confidence,” said John Morton, Chief Risk Officer, Green Dot Corporation. “Once you put funds on MoneyPak, your MoneyPak number is the same as cash. We remind customers to only use MoneyPak with approved partners and companies they know and trust.”
For more information about MoneyPak and to check the approved partner list, consumers can go online to www.moneypak.com. CFA’s tips and video about this new scam are at www.consumerfed.org/fraud.
Contact: Jack Gillis 202-737-0766
The Consumer Federation of America is an association of nearly 300 nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education.