ATLANTA — Customers using a popular online banking card say thieves are finding ways to drain money from their accounts, stealing hundreds of dollars before the cards are ever used.
Teresa Johnson said that is exactly what happened to her family after they loaded money onto a Green Dot prepaid card to help control holiday spending.
“We were using this card to stay on budget,” Johnson said. “That way there’s no going over budget.”
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Johnson, an educator, said she purchased the $20 prepaid card and loaded $400 onto it for gifts. The family planned to use the card strictly for holiday purchases so they would not exceed their spending limit.
But when Johnson tried to use the card, it declined.
“Don’t go messing with my money,” she said.
Her husband checked the balance and discovered most of the money was gone.
“He was like, there’s only $100 on the card,” Johnson said.
Johnson said she had not used any of the funds. She then checked the Green Dot mobile app and found unauthorized transactions linked to PayPal.
“So I called PayPal,” Johnson said.
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She said PayPal representatives were able to see the transactions tied to the Green Dot card.
“They could see it. They could see everything on the Green Dot card. The weirdest thing I’ve ever seen,” she said.
Johnson said she still does not know how someone gained access to the prepaid card information, but PayPal reversed the charges quickly.
“PayPal got our money back within 24 hours. Our money was back on the card,” she said. “I was extremely happy. Very, very happy.”
Green Dot addressed the issue in a statement, saying:
“Fraud continues to be increasingly sophisticated and prevalent across our industry. We invest heavily in technology and talent to help us identify and prevent fraud, and we partner with other financial institutions and the government to identify and combat suspicious activity.”
Consumer experts warn gift card and prepaid card fraud is becoming more common, especially when thieves tamper with cards before customers purchase them.
Consumer advisors recommend shoppers:
- Avoid taking gift cards from the front of store racks
- Inspect packaging for signs of tampering
- Buy gift cards online when possible, which is often the most secure option
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