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Watch
out for Green Dot scam
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[July 20, 2011]
A woman in
Springfield was approached by this “Green Dot” card scam. Please
keep in mind that there are legitimate Green Dot Cards, but con
artists have picked up on this system to fraud people.
“Green Dot Cards are re-loadable debit cards that can be purchased
at almost every convenience store. The Green Dot re-loadable debit
cards are the latest scam for con artists working a well known type
of grant scam.
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The con itself is a type of advance payment scam in which victims
receive what seems to be a grant award check -- usually one they
didn't apply for -- with a request that they then wire part of the
payment back to cover some mythical fees. The victim is then asked
to wire the money & the check they received bounces.
Along with the bogus check, usually for just under $5,000, an
accompanying letter says recipients must pay a finder's fee of 10%
to the "broker" who secured the grant.
Now here's the sneaky trick. The letter tells victims to buy a Green
Dot MoneyPak, of the sort available at many retail outlets including
drug stores.
MoneyPaks are used to top up existing Green Dot debit cards. The
victim sends details of the card to the "broker." These are used to
top up the crook's own Green Dot card -- and then quickly drained at
an ATM.
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In other words, it's a money transfer that bypasses the traditional
cash-wiring companies and offers a far more effective cloak of
anonymity for the advance fee scammers.” Check out this website for
more details. http://www.scambusters.org/greendot.html
Erin Ruebbelke
Program Specialist, Policy Division
Office of the IL Attorney General
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