Watch out for Green Dot scam

[June 06, 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.

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.

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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