Fraudsters Target Unbanked with Prepaid Card Scam

Fraudsters Target Unbanked with Prepaid Card Scam

September 24, 2014         Written By Lynn Oldshue

There is a new form of money fraud, and this time, crooks are using MoneyPaks to get the job done. The thieves are using creative tricks to obtain the 14-digit code off the back of MoneyPak cards and then stealing money from the cards.

MoneyPak cards are available at 92,000 retail stores around the country. These prepaid cards are popular among unbanked and underbanked Americans. People can use them to add cash to PayPal accounts, reload them with cash and make cash payments to other businesses.

The 14-digit code on the back of a MoneyPak card acts much like a credit card number. Every one is different and linked to a specific account. Tracking this code is incredibly difficult, which is why fraudsters are now taking advantage of it.

There are several different scams now involving MoneyPak cards.

“Fraudsters will call or email you, saying that you won a lottery or can buy discount merchandise at their phone websites—but you need to pay fees to get your prize or purchase that merchandise via MoneyPak—and only MoneyPak,” Green Dot spokesman Brian Ruby told Business Insider. “Then they ask for the 14-digit code.”

One user reported a scam involving a fake billing company that demanded three $500 MoneyPak cards in order to keep his electricity on.

Do not fall victim to this scam. Only give your MoneyPak information to stores and people you fully trust, and contact the company right away if you notice any issues with your account.

Other Recent Stories on Prepaid Cards:
Thieves Using PayPal Prepaid Cards to Steal Products
CFPB Now Accepting Complaints on Prepaid Cards and Gift Cards
$200 Billion Spent on Prepaid Cards in 2014

The information contained within this article was accurate as of September 24, 2014. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and may be compensated if you take action with any of our affiliate partners.


About Lynn Oldshue

Lynn Oldshue has written personal finance stories for for twelve years. She majored in public relations at Mississippi State University.
View all posts by Lynn Oldshue