Beware of Green Dot MoneyPak Scams

Since then, however, MoneyPak has been a requested payment method in cons involving fake lotteries; bogus online and auction transactions; background checks in job scams; and impostors posing as arrested or hospitalized grandchildren in the "grandparent scam."

The latest variation: People posing as representatives of utility companies call customers saying they should pay their bills with MoneyPak and provide the impostors with the serial number.

“You need to treat your MoneyPak like cash,” advises Ruby. “Do not give the 14-digit serial number to anyone except if you call or visit the MoneyPak or Green Dot websites. Anyone who calls you saying you need to buy a MoneyPak and give its code is probably a scammer.”

Other ways to safeguard your card:

• Be wary of websites or online advertisements in which you’re specifically asked to pay with a MoneyPak card, rather than also allowing the use of credit or bank-tied debit cards.
• Remember that if you're told you have to pay any kind of advance fee to collect a prize or get a job or government grant, it’s a scam.
• If you want to use MoneyPak funds to buy from online merchants, first transfer the funds to your PayPal account.  Never directly provide your MoneyPak number to an online merchant.
• Don’t trust online merchants just because their websites display a MoneyPak or Green Dot logo; scammers operating phony websites often fraudulently use these logos. Only these approved partners are vetted to accept MoneyPak funds.
• Treat the funds loaded on your MoneyPak like cash and understand that unlike credit cards, MoneyPak transactions cannot be reversed. If you lose the MoneyPak or give the number to crooks, MoneyPak won’t refund your funds. And the money on your MoneyPak is not FDIC-insured.
• If you have any questions about MoneyPak cards, call 1-866-963-6219. Call 1-800-473-3636 about other Green Dot cards.

Also of interest: Don't make these 5 common financial mistakes.