Better Business Bureau: Scammers play on fears, use GreenDot cards

CHICAGO (WLS) -- (PRESS RELEASE)Scammers Exploit Consumer Fears About Ebola, Warns Better Business Bureau

October 16, 2014

It's an indisputable fact that scams follow the news. Whether it's a natural disaster, manmade crisis or health related scare, scammers will seek profit. The Better Business Bureau (BBB) is joining government agencies in alerting consumers about scams that are related to the Ebola virus.

The fear of this deadly disease has moved scammers to act quickly. "It's the fear of the unknown that can cause consumers to act almost irrationally, buying untested products that will give them no more protection than if they'd done nothing Those are the kind of products you will find offered on the internet," says Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois. "Health officials maintain that Ebola is not spread through casual contact and the risk of contracting the virus in the United States is very low," Bernas added.

Scammers taking advantage of the situation have just one goal and that is to separate people from their money. Bernas noted, "It's a different kind of emotional plea fear, anxiety, and even greed."

The FTC states, "Scam artists are making unsubstantiated claims that products containing everything from silver to herbal oils and snake venom can cure or prevent Ebola." Both the FTC and FDA say that these claims are completely false and have issued a warning letter to Natural Solutions Foundation to make that point.

What should consumers be on the lookout for?

Charity Scams - Con artist will solicit for donations to fake charities. Be aware of solicitations from obscure nonprofit groups claiming to provide relief for Ebola victims. Before committing, check out the organization at bbb.org.

Stock Scams - Crooks will pitch the stock of companies that have supposedly found a cure, sell special hazardous materials suits or had a breakthrough or some other solution to fight the virus. Stock scams often aim to get people to buy shares of companies in which the crooks have an investment. The stock's price rises with demand. After the stock rallies the crooks dump their shares for a profit. Before investing, do your research especially if you are hearing about the company through unsolicited pitches.

Identity risk - Be careful about any unsolicited email messages you might receive regarding Ebola. Such messages could contain malware. If you click on a photo, video or attachment, you could trigger malware that might track your keystrokes to learn passwords, financial account numbers or other personal information.

Ebola cures - Scammers will try to sell all-in-one products that will cure a wide range of illnesses, quick fixes and "All Natural" cures that can contain untested, hidden or dangerous ingredients and "Miracle" cures which are generally only found buried in print ads, TV infomercials or on internet sites.

BBB advice for not becoming a victim of an Ebola-related scam:

Remember there are currently no FDA-approved vaccines or drugs to prevent or treat Ebola. There are experimental Ebola vaccines and treatments under development but they are in the early stages of product development and are not available to the public.

Be on guard if you receive press releases or emails from an unknown sender touting a company's stock.

Remember that even if a stock is registered with the Securities and Exchange Commission (SEC), that doesn't mean it has been investigated by the agency.

Don't fall for name-dropping relationships with familiar sounding charities, companies, government agencies, or medical facilities. They may be fake.

If making a donation, ask if the money actually goes to the charity. Don't be pressured into making a donation. Ask for written materials. Don't make a contribution using cash or a pre-paid debit card.

(PRESS RELEASE) GreenDot Money Pak New Source of Cash for Scammers Warns Better Business Bureau

October 10, 2014

The scams vary. Victims report getting calls that they owe back taxes and the IRS wants to be paid now. Or it's a call claiming the person has a delinquent debt that must be paid now or face jail. The scam list is long - unpaid utility bills, million dollar sweepstakes, online auctions, and job and grant scams to name a few. The Better Business Bureau warns consumers to be vigilant when taking calls.

What doesn't change is the goal of the con artist...to get your money. Historically, that meant that the victims would wire cash to the caller "a stranger", but that became a red flag to many consumers so scammers found a new way to get them to pay; via GreenDot MoneyPak cards.

GreenDot is just one of many reloadable debit cards, available at many retailers. But because it's easy to use, untraceable and readily available it has become the scammer's choice.

"One of the major problems with scams that involve the use of the GreenDot MoneyPak card is that victims are on their own if they lose their money," says Steve J. Bernas, president and CEO of the Better Business Bureau serving Chicago and Northern Illinois. "GreenDot's website prominently warns consumers using their card that they are not responsible to refund lost money because the information needed to empty the card of its funds was provided voluntarily."

Magdalena Urbaniak of River Grove a victim of an advance fee loan scam says "I was glad when they called and offered me a $10,000 loan because my credit score is bad. They asked for a fee of a little under $500 on a GreenDot card. I got the card and gave them the info. Then they called saying that my credit was bad so they needed another $486.38 so I gave that to them. The money was supposed to be released into my bank account. I called to check when it wasn't there. They rechecked and said that I had given them the wrong bank account number. I know that I gave them the right number. They asked for another $3000 and I refused. I keep calling for my money and they say they can't help unless I give them more money".

Aware of the scam issues GreenDot Corp. is changing the way money can be loaded onto its cards. It's phasing out the MoneyPak PIN, which allows for easy access to the fund, and switching to a "swipe at the register" method that requires the cardholder to be present. Additionally, MoneyPak has been removed from WalMart stores and many other retailers.

To avoid being scammed consumers should:

Never give your card number to anyone.

Never give receipt information about your MoneyPak purchase to another party.

Use your card only to reload prepaid cards or accounts you control.

Refuse any offer that asks you to buy a GreenDot MoneyPak card.

Don't use your card to pay taxes or fees to claim "winnings" on a lottery or prize promotion.

For more tips on scams, visit www.bbb.org, like us on Facebook and follow us on Twitter.