I’m sure you’re all familiar with scammers using Green Dot MoneyPaks to defraud consumers. We sure are, so what we did was create a short video (which we haven’t formally debuted yet) to try to educate consumers on what these things are and how scammers are using them to rip people off.
Finally, I thought I would just share what I learned about MoneyPaks (we purchased one for the shoot – as well as a reloadable debit card). The process wasn’t quite as straightforward as I thought.
As the CVS clerk told me, MoneyPaks are like ‘middlemen.’ People can’t transfer money directly onto a reloadable debit card. They have to purchase one of these MoneyPaks (they cost $4.95 and I believe there’s a $20 minimum ‘load’.
From there, they can either use the MoneyPak to pay bills directly online (MoneyPak partners with a handful of credit cards and utilities – https://www.moneypak.com/WhoAccepts.aspx) or transfer funds from that format to a reloadable debit card (which also costs $4.95 though you can use these cards over and over – I believe) or a PayPal account.
Anyway, as you well know, once scammers get the numbers off the back of these MoneyPaks they can then drain the funds pretty much instantaneously (and presumably load them on prepaid credit cards they’ve purchased).
And people are giving out these numbers because they don’t understand MoneyPaks or how they work.– editor and director, Mackenzie Kelley