Why does Suits Me® charge for its services?.Despite these challenges, though, it is possible to avoid many prepaid card scams by addressing potential weaknesses in your business practices.Ī few adjustments to your merchant operations, for example, could drastically reduce your overall risk of fraud. Obviously, this is a huge problem, and it doesn’t come with any easy answers. They may also have no defined origin point for shipping and tracking, or other pertinent details which might help merchants detect fraud. Purchases made with these cards can lack accurate or detailed cardholder information. How Merchants Can Avoid Prepaid Card ScamsĪs we mentioned above, it’s very difficult to track prepaid cards. As we’ll see below, merchants and financial institutions can also feel the impact of prepaid card scams. It isn't just consumers who have to worry about these threats, though. Although FTC is the main governing body for consumer-related fraud, individual cases could become attached to class-action suits or other legal proceedings to prevent future attacks.Īvoiding prepaid card scams is the easiest way to keep your personal finances and information safe. Contact your state attorney general to report the case.Dates, times, phone numbers, and any screenshots of messages are excellent information that can help the FTC prevent future cases. Contact the FTC to report the fraud and explain the situation in great detail.They may ask you to share your receipt and other purchase information for a possible refund. Contact the prepaid card retailer to report the fraud.This may also help you gain assistance from the prepaid card issuer. What do you do if you’ve already become a victim of a prepaid card scam, though?Īccording to the FTC, once you know you’ve been caught up in any prepaid card scams, your next steps should be to: We’ve discussed how you might be targeted by a scammer, and which tactics can be used against you. What to Do if You’ve Already Been Targeted Otherwise, a simple and highly effective trick is to google whatever claim the sender is making followed by the word “scam.” If it’s fishy, odds are good that someone has already fallen prey to it before and reported the scam. If you’re not sure about an email or text message, ask someone close to you if this sounds like a scam to them. We recommend keeping these points in mind: This is the best way to avoid becoming a victim. That said, knowing the ways in which you can be targeted, and how it happens, can be a huge help. It’s nearly impossible nowadays to avoid sharing personal account information online and in stores. Each time a user clicks into an email thread, browses an unsecured website, or checks their account balance in a coffee shop, they could be exposing their data to potential fraudsters. It’s essential for every consumer and merchant to understand that. Prepaid Card Scams: The Warning SignsĪbsolutely no one is immune to fraud. Prepaid cards offer anonymity to criminals, and that makes them very useful as a way to move cash easily across borders. They can also be used to move funds between illegal accounts online. They can be used by fraudsters to outsource their services to other bad actors on the dark web. After all, they’re equivalent to cash, and are relatively untraceable.Īccept payments from a wider range of sources WITHOUT the chargebacks.įor instance, prepaid cards can be used at many ATMs to convert stolen earnings to cash without much fuss. This makes it incredibly easy for fraudsters to use prepaid cards in money laundering and other scams. However, limited-use prepaid cards don’t have to be tied to any particular account or identity. These scams are tricky because they can be difficult to spot, and they’re even harder to trace.Ī customer must provide personal information to set up a reloadable prepaid card. Fraudsters often use prepaid cards to make illegal purchases, accept fraudulent payments, or arrange payment to facilitate larger scams. When we say “prepaid card fraud,” that can apply to any illegal or fraudulent use of prepaid card credentials. Why Prepaid Card Scams are so Popular With Fraudsters Accidental Fraud: How it Works & Helpful Tips to Avoid it.Package Redirection Scams: Tips to Stop Them From Happening. Merchant Credit Card Fraud Prevention: How to Stop Scammers.How do Banks Conduct Credit Card Fraud Investigations?.How to Identify & Prevent Shipping Scams in 2024.Address Fraud: How Criminals Swap Addresses to Abuse Victims.
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