Credit and Debit Card Ratings

Hackers Target Walmart MoneyCards

Walmart MoneyCard holders around the U.S. report being swindled 

by Chris Warren

It has been a miserable month for a small number of Walmart MoneyCard customers. According to a story on the website ConsumerAffairs.com, a host of Americans who use the retailer’s general purpose reloadable prepaid debit card have had their accounts hacked recently.

In the piece by writer Jennifer Abel, Walmart MoneyCard holders in Missouri, Ohio and California all reported very similar experiences in which a thief in New York City drains victims’ accounts by getting hold of their account information and then making purchases at a Target in Brooklyn. One of the victims, Kelly L. from Canton, Ohio, complained that she checked her account balance on Sept. 9 and discovered that it had just $1.41, thanks largely to 5 purchases made at a Target in New York City the day before. “I am waiting for [Walmart] to send me a new card so I can get the amount owed to me, then I am closing my account,” she wrote.

In a follow-up story on Sept. 18 Abel wrote that Walmart had neither responded to her requests for comment nor resolved any of the earlier cases. Abel did, however, quote the Walmart cardholder policy, which urges anyone who believes their card or PIN has been lost or stolen to notify the company immediately. “You will not lose any part of the money on your card based on unauthorized use if you have exercised reasonable care in safeguarding your Card and PIN from risk of loss or theft,” it says. “However, if these conditions are NOT met, you could lose the lesser of $50 or the amount of unauthorized use from your Card before you notify us that your Card has been lost or stolen.”

In other words, the terms of the cardholder policy give some assurance that those who were victimized by the New York fraudster will get most, if not all, of their money back. But as Abel notes – and as we have reported on in the past – prepaid debit cards offer far less protection than debit or credit cards in the event they are lost or stolen. That said, if you are unfortunate enough to fall victim to a criminal, the most important thing to do is to alert the card issuer right away and continuously follow-up with the company to ensure that you get as much of your money back as possible.

Author: Shane Tripcony

  • Hackers Target Walmart MoneyCards

    Hackers Target Walmart MoneyCards

    Walmart MoneyCard holders around the U.S. report being swindled 

    by Chris Warren

    It has been a miserable month for a small number of Walmart MoneyCard customers. According to a story on the website ConsumerAffairs.com, a host of Americans who use the retailer’s general purpose reloadable prepaid debit card have had their accounts hacked recently.

    In the piece by writer Jennifer Abel, Walmart MoneyCard holders in Missouri, Ohio and California all reported very similar experiences in which a thief in New York City drains victims’ accounts by getting hold of their account information and then making purchases at a Target in Brooklyn. One of the victims, Kelly L. from Canton, Ohio, complained that she checked her account balance on Sept. 9 and discovered that it had just $1.41, thanks largely to 5 purchases made at a Target in New York City the day before. “I am waiting for [Walmart] to send me a new card so I can get the amount owed to me, then I am closing my account,” she wrote.

    In a follow-up story on Sept. 18 Abel wrote that Walmart had neither responded to her requests for comment nor resolved any of the earlier cases. Abel did, however, quote the Walmart cardholder policy, which urges anyone who believes their card or PIN has been lost or stolen to notify the company immediately. “You will not lose any part of the money on your card based on unauthorized use if you have exercised reasonable care in safeguarding your Card and PIN from risk of loss or theft,” it says. “However, if these conditions are NOT met, you could lose the lesser of $50 or the amount of unauthorized use from your Card before you notify us that your Card has been lost or stolen.”

    In other words, the terms of the cardholder policy give some assurance that those who were victimized by the New York fraudster will get most, if not all, of their money back. But as Abel notes – and as we have reported on in the past – prepaid debit cards offer far less protection than debit or credit cards in the event they are lost or stolen. That said, if you are unfortunate enough to fall victim to a criminal, the most important thing to do is to alert the card issuer right away and continuously follow-up with the company to ensure that you get as much of your money back as possible.

  • Prepaid Debit Card Scams Proliferate

    Prepaid Debit Card Scams Proliferate

    Prepaid debit cards are becoming an increasingly popular tool for criminals.

    By Shane Tripcony

    Over the summer utility customers from Virginia to Pennsylvania to California have been targeted in a scam that closely resembles one that was reported on recently by The Beach Reporter in Manhattan Beach, California. In an article titled, “Edison warns its customers of utility bill scam,” the paper told its readers that Southern California Edison customers have been receiving phone calls from people claiming to be from the utility demanding payment for past-due electricity bills.

    The paper reports that the callers threaten Edison customers with having their electricity cut off if they don’t make an immediate payment using a prepaid debit card. As of September, Edison says that about 150 businesses and residents had been victimized at an average cost between $800 and $1000.

    While popular, the utility scam is not the only type that relies on the use of prepaid debit cards. According to a story in the Arizona Republic, two citizens of Surprise, Arizona were indicted in a $2.5 million income-tax scheme involving prepaid debit cards. According to the charges brought by the U.S. Department of Justice, the alleged perpetrators told victims that they could receive “Obama stimulus money” or “government funding” via a prepaid debit card. In return for that promised government money, victims handed over personal information that was used by the alleged criminals to file false federal income-tax returns. In total, the 18-count indictment by the federal government says that the perpetrators received over $2.5 million in refunds.

    A similar scheme also resulted in prison time for a Cincinnati man. According to a report on Cincinnati.com, Dione Howard was sentenced to 12 months and one day in prison and ordered to pay $30,129 to the Internal Revenue Service for his involvement in a crime involving prepaid debit cards. Citing court documents, the report says that Howard purchased 18 names, social security numbers and dates of birth and used them to file false income-tax forms. Howard received a total of $30,129 in fraudulent refunds.

    “This unscrupulous defendant thought he had figured out a clever scheme to thwart the IRS and steal from the American taxpayers,” the story quoted Kathy Enstrom, special agent in charge, IRS Criminal Investigation in the Cincinnati Field Office as saying. “The IRS has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”

Credit and Debit Card Ratings