For Immediate Release – July 6, 2011 – Scammers are using a new method to siphon cash
from consumers: Green Dot MoneyPaks.
MoneyPaks, which are sold in stores throughout the U.S., are reloadable debit cards
normally used to make same-day payments or add money to prepaid cards or PayPal
accounts. In recent weeks, BBB’s have noted a significant increase in schemes
where scammers either tried to solicit – or were able to collect – payments via
MoneyPak for merchandise, advance fee loans or sweepstakes prizes that all
proved to be fraudulent or nonexistent.
Last week, a Cleveland woman called the
BBB to report that she had received a call claiming she had won $2.5 million in
the African American Sweepstakes. The
caller said she had to pay a 1% fee on her winnings in order to collect. She
was told to purchase a $250 Green Dot MoneyPak card and arrange a time for
delivery.
The next day, another
woman reported she received a call informing her she had won a $250,000
sweepstakes conducted by Mega Box.
The caller asked her to purchase a $172 Green Dot MoneyPak card to pay for
certain fees before she was allowed to get her prize money.
Both companies used phone
numbers with an 876 area code. Although
easily mistaken for a toll free area code, the 876 area code is actually
assigned to Jamaica.
In addition, federal law prohibits the
requirement of any fee in order to receive prize winnings.
BBB advises consumers to
protect themselves from similar scams in the following ways:
·
Be wary when
receiving calls from 876 area codes. Many telemarketing scams originate form
this Jamaican area code.
·
Treat MoneyPak
cards like cash. Unlike credit cards, MoneyPak transactions can never be
reversed.
·
Be wary of
websites or Craigslist advertisements linking to websites that require you to pay
with a MoneyPak card.
·
Never give
your MoneyPak number to someone you don't know.
·
If you're told
you have pay to a fee -- via MoneyPak or wire transfer -- to collect a cash
prize or sweepstakes winnings, you're being scammed.
·
If a website
displays the MoneyPak or Green Dot logo, check www.moneypak.com for a list of approved
MoneyPak partners.