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Scam Attacks on Green Dot Bank 2022

The mission of Green Dot, financial technology and registered bank holding business, is to make contemporary banking and money transfer available to everyone. 

Their patented technology powers simple and frictionless methods for users to spend, regulate, and save money. It also allows quicker, more efficient electronic payments and money management. Debit, prepaid, checking, credit, and payroll cards, as well as powerful money processing services, tax refunds, cash deposits, and disbursements, are just a few of the financial products they provide to individuals and businesses through its retail and direct bank.

A rising number of America’s most renowned consumer and technology firms can now create and implement their own unique banking and money movement solutions domestically and abroad, thanks to their banking as a service platform.

With over 90,000 retail distribution outlets worldwide and its headquarters in Austin, Texas, Green Dot was founded in 1999 and has serviced more than 33 million clients directly and many more through its banking partner.

Green Dot Bank

Green Dot Scam Cases Over The Years

The Minnesota Department of Public Safety and the Better Business Bureau both issued alerts in June 2011 about the misuse of Green Dot’s MoneyPak cards for consumer fraud.

Con Edison alerted the office of New York State Senator Martin Golden to a number of frauds, including “Green Dot scams,” in January 2012.

Time magazine published an article in March 2012 on how the 419 scams have evolved to take advantage of the relative anonymity of MoneyPak cards. After MoneyGram was fined 18 million dollars “to satisfy FTC claims that it permitted its money transfer system to be used for fraud,” the AARP issued a warning about the growth of MoneyPak fraud in 2012. A reduction followed this in MoneyGram fraud.

The FBI also issued a warning about scammers using MoneyPak’s untraceability to pressure unwary victims into paying a “ransom” to unlock their malware-infected machines in August 2012. According to AVG Technologies, scammers have been known to use malware to trick victims into believing their computers have been linked to severe crimes before leveraging the relative anonymity of MoneyPak cards to carry out “untraceable” extortions. This is how the FBI fraud was carried out.

Beginning in the middle of 2013, people started using Green Dot MoneyPak cards for fraudulent purposes. They would either call people pretending to be customer service representatives for utilities like power or gas companies and demand immediate payment under threat of disconnection using a personal card, or they would tell them to go to a store that sells Green Dot cards and give them the card number the money was put on. For these amounts, a number of national chains now have policies requiring the consumer to validate the reason for using the card, and they will refuse to process the transaction if this kind of fraud is thought to be the reason.

The caller demanded a “ransom” from the stores of multiple Green Dot cards with large amounts activated using store registers, which would then be placed in an unmonitored location for the culprits to pick up, or the numbers read through the phone. This occurred in September 2013, forcing the evacuation of several Walgreens and other large chain drug stores throughout the United States.

Scammers used Green Dot cards in 2015 to file fraudulent income tax returns with stolen Social Security numbers. A Green Dot account is opened in the victim’s name, and a refund claimed on the false tax return is sent to that account. The stolen SSN is used to open the Green Dot account, which is emptied if the refund is received, as well as to file the fraudulent tax return. An unexpected letter bearing a permanent Green Dot card for the account—likely a sign of SSN breach and attempted fraud—is sent to the victim. It is embossed with the victim’s identity.

Scams

The Recent Surge of Phishing Scams Masquerading as Green Dot

Over the past ten years, the usage of prepaid debit cards has grown steadily and significantly, and industry predictions predict that growth will continue. Prepaid cards offer money in a more practical form and are frequently used in place of cash or cheques. 

Prepaid cards, in contrast to these more traditional methods of payment, can be used to make purchases online without first transferring money to a bank account. The rise of prepaid cards may be advantageous to merchants, particularly those engaged in online commerce. Unfortunately, one significant drawback of credit cards is fraud.

Have you heard from the renowned American issuer of prepaid cards, Green Dot Corporation? Don’t fall for the recent surge of phishing scams masquerading as Green Dot! Scammers send you text messages with phishing URLs in an effort to trick you into clicking them while posing as Green Dot. They may cite a variety of justifications, including phony security warnings, false gift offers, or a COVID-19 benefit scheme.

Your personal information is the fraudsters’ ultimate objective, regardless of their strategies. The phishing link will direct you to either a phony Green Dot login page where you are prompted for a user ID and password or an online form that requests further personal information if you click on it.

If you have been scammed through online, then contact us to get your money back!

Online Scams

• Fake Covid-19 Assistance

Scammers encourage you to apply for a COVID-19 benefit program that doesn’t exist by sending you a phishing link. Avoid being duped!

This is a message from the Green Dot firm, working in tandem with the US Federal Government to support the COVID-19 benefit. To all eligible GreenDot Bank customers to access the $10,000 free payment. This payment involves no time at all because it is free. To claim the money, go here and complete the form; {URL}

Greetings, I’m Janet Laura. Has the GREEN DOT BANK approached you regarding the COVID-19 Assistant? I received a benefit payment of $5,000 per month to help me pay my debts. Although this is true and authentic, you are not required to pay it back. For further details, Visit {URL}

You may visit a Wix Site-created website by clicking the link, but it is definitely NOT official. (Note: A Green Dot website’s legitimate web address should finish in greendot.com.)

Insights for Marketing

• Fake Green Dot Benefit Program

In addition to the epidemic, a $1,000 incentive is an excellent lure to draw you in:

Hello, Green Dot Bank offers a $1,000 incentive to all its clients. All FDIC bank account holders can also take advantage of the offer by clicking the link below. {URL}

Greetings, I’m Trevor Kristen. The GREEN DOT COMPANY may have contacted you. When I applied for it, I received $100,000 in my Green Dot, and I’m not required to pay it back. Visit for additional details. {URL}

Once more, clicking on these URLs will direct you to a bogus Green Dot website. All the login information you provide here, including your Green Dot login credentials, might be recorded by scammers and used for identity theft. Be careful!

• Fake Green Dot Security Alert

The same scams that prominent institutions like Citibank and Wells Fargo have used in the past—which we’ve already covered—apply to Green Dot as well:

Green Dot Security Alerts: We’ve seen a new device sign in to your account. Please visit this URL to safeguard your account.

Scammers ask you to “protect your account” by clicking on the provided link. Your browser will direct you to a bogus Green Dot login page. Submitting personal information puts your Green Dot account at risk of being hacked by con artists. Stop letting them!

get me out of here

What is The Outcome of All The Green Dot Scams?

Green Dot collaborates with these organizations “to confront, mitigate, and resolve” fraud incidents by proactively bringing them “to the notice of the Secret Service as well as other government agencies and industry peers,” a business spokeswoman told the network.

The Secret Service stated in a news statement announcing the appointment of a new national pandemic fraud recovery coordinator that since the commencement of the pandemic in the United States, criminals had defrauded the government of approximately $100 billion through false COVID-19 relief fund applications. The organization stated that the estimate was derived from two inspector general reports that were published earlier this year.

The Secret Service has appointed the national pandemic fraud recovery coordinator as Assistant Special Agent in Charge (SAIC) Roy Dotson, who is headquartered in Jacksonville, Florida.

According to a government release, the Secret Service’s investigations into the unemployment insurance and Small Business Administration (SBA) loan and grant programs resulted in the seizure of about $1.2 billion and the return of about $2.3 billion that had been fraudulently obtained through ACH reversals. According to the bureau, some 100 persons have been detained in relation to these offenses.

Scams

How to Protect Yourself Against Such Scams?

  • Verify the sender’s cellphone number a second time.
  • Free gifts and rewards are almost usually a big warning sign.
  • If you suspect any cybersecurity risks, contact Green Dot’s customer care directly rather than clicking on links from untrusted sources.
  • Never open attachments or links from sources you don’t recognize. To browse the web securely, use Trend Micro Check (it’s free!).

Ways to Protect Your Card in A Case Like The Green Dot Scam Cases

  • Use the chip at all times! Your chip’s encryption technology prevents counterfeiting and contributes to the security of your card information.
  • If you didn’t initiate the call, never give up your debit card number, PIN, or personal information over the phone. Never forget that the bank will never ask you for your account information or PIN details in order to preserve your security.
  • Use the Card Control feature in Online Banking to limit card usage.
  • Be cautious of websites or online adverts that expressly request that you pay using a MoneyPak card rather than enabling you to use a credit card or a debit card that is linked to a bank.
  • You should always keep in mind that any request for an upfront payment in exchange for a reward, a job, or a government grant is a fraud.
  • MoneyPak money must first be transferred to your PayPal account before you may use them to make purchases from online retailers. Never give your MoneyPak number to an internet retailer directly.
  • Don’t trust online merchants merely because their websites use the MoneyPak or Green Dot brands; con artists running fake websites sometimes use these logos fraudulently. To receive MoneyPak money, only these recognized partners are screened.
  • Understand that, unlike credit cards, MoneyPak transactions cannot be reversed, and treat the money put on your MoneyPak as cash. MoneyPak won’t reimburse your money if you misplace the MoneyPak or divulge the number to thieves. Additionally, your MoneyPak funds are not FDIC-insured.

How Funds Trace Can Assist You

An investigative recovery company called Funds Trace is filled with subject-matter professionals who can examine your case, compile evidence about your criminals, and find your fraudster for you. We don’t stop there; we make sure the con artist gives the victim 100% of the money they took.

At Funds Trace, we employ a highly functional and integrated method to identify con artists and retrieve the stolen money. Depending on the specifics of your fraud case, the complete process of recovering assets may take one to three months. Our group of regional professionals will get engaged and start legal proceedings on your behalf if you think money has been stolen from your account. By initiating a dispute and advocating for you in court, we want to simplify the process for you.

Key Takeaways!

The best way to foil such schemes may be to educate the public on the correct use of prepaid cards and the many scams that fraudsters carry, but law enforcement should be aware of the signs and know how to spot such acts as they are happening.

However, we make use of the internet and have created a comprehensive method for victims to contact us and submit their cases online. While fraudsters may use the internet to steal from you or swindle you, we do not. The Monies Trace team will walk you through a number of processes necessary to report a case and recover your funds.

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