Useful wire-transfer card can also be used for scams
For years, the preferred way for many scammers to collect their ill-gotten gains from victims was through wire transfers.
Once the crook picked up the money from the local Western Union or MoneyGram office, it was gone.
I continue to be amazed that people will wire money to Canada, the Bahamas or somewhere else expecting to get lottery winnings in return.
The Better Business Bureau, law enforcement agencies and the wire transfer companies have successfully educated many people that wiring money to someone you don’t know, particularly in a foreign country, is a recipe for disaster. The crooks have adapted by employing a new payment method, although a wire transfer continues to be a popular component of scams.
Like wire transfers, the Green Dot MoneyPak card is a legitimate product when used for the right purposes. You can load money on a MoneyPak card and use it to reload prepaid cards, add money to a Pay- Pal account without using a bank account, or make same-day payments to major companies.
It can be purchased at well-known retailers like Walmart and Walgreens, which the crooks probably hope will add an air of legitimacy to the scam.
It can also be used like wire transfer services, except you don’t have to show up at an office to transfer money. You simply provide the number found on the card to whomever you’re making the payment to and they can get the money. Therein lies the attraction of the card to scammers — anyone who has access to the number can get the money.
The BBB has heard about the following scams that employ the MoneyPak card:
Restaurant owners or other small business people receive a call purportedly from MLGW saying they owe money and their power will be shut off if they don’t pay immediately.
People receive a call from someone claiming to be with the Germantown police department saying they owe money on a traffic ticket and must pay it im- mediately to avoid arrest.
Immigrants receive a call purportedly from the IRS saying they owe back taxes and must pay immediately to avoid deportation. The St. Louis BBB reported on a case where a couple from India lost $10,000 in this scam.
Computers suddenly lock up and the users get a message that purports to come from the FBI saying they’ve downloaded pornography and threatening dire consequences. However, they can escape prosecution this one time by paying a fine.
The BBB offers this advice to avoid falling for a Green Dot MoneyPak card scam:
Government agencies will not contact you in this manner.
They will not request payment via a pre-paid debit card or wire transfer.
Be wary of any website that only accepts payment by these means.
Understand that providing the card number to a scammer will allow him to loot the card. Randy Hutchinson is president and chief executive officer of the Better Business Bureau of the Mid-South.