Prepaid card scams are getting more and more rampant these days. This is why prepaid cardholders are also worried about the safety of their hard-earned money. It is true that prepaid cards can help you keep your debt under control, but this can also become an easy victim of fraud. Fraudsters never stop looking for ways to use prepaid cards in order to scam consumers of their money.
Table of Contents
Mobile Phone Camera Scams
Using a mobile phone, anyone can take pictures anytime, anywhere. This is what mobile phone camera scammers do. What they do is when you are using your prepaid card in the checkout counter, the scammer will stand behind them and with their cellphone camera, they will take a 30-second video of you while paying for your goods.
This short clip is enough for them to get your card information and your PIN. When they have it, they will make a clone of your card using your card information. Once completed, this cloned card can then be used to make purchases while draining the funds out of your card without you knowing.
Now, how can you avoid this? Simple. Beware of your surroundings. If you think the person behind you is already crowding you, this should be a red flag. The person might want to be too close to you to get your card information and PIN. So before handing over your card to the cashier or the teller, politely ask the person behind you to give you more space. However, if you think that you have been filmed, make sure that you notify your prepaid card provider and do a vanilla gift balance check.
The Flash Attacks!
The reason why fraudsters attacks target the prepaid cards because these do not have the same level of fraud protection compared to credit cards. Fraudsters will do their best to find a way to ‘skim’ the data out of your cards’ magnetic strip. They would use this to create cloned cards using your prepaid card information. These cloned cards will then be distributed to different scammers who will then use them at different ATMs.
Now, how does this happen? There are cases where the cashier or the waiter will run your card using a card reader. This copies your information that is contained within your card’s magnetic strip. Once the thief already has this information, the card number will be copied onto a blank card and use that to make purchases whether over the phone or online.
To avoid this from happening, always cover your PIN when you have to use your card at an ATm, at checkout counters, or when you pump gas. If you are using your prepaid card on a daily basis, make it a habit to monitor your balance online. This is to ensure that your funds are protected and have not been touched by the fraudsters.
If you are wondering why prepaid cardholders are at high risk for fraud, that is because these cards are not linked to any bank account. This means that the funds are not insured. As a result, if the cardholder gets scammed using their prepaid card, he or she will not have the legal protection to get their money back. So before you purchase your prepaid card from Vanilla Gift, it is important that you are aware of the methods that these fraudsters do by using prepaid cards.