Okay, true confession. How sad is it when we at BBB get excited when we see a new scam? That’s like emergency room humor! Sorry to all of you in advance that we were a bit “juiced” about this interesting twist on an old scam.
You know the drill. Money for nothing, our government’s giving it away – just apply! You get a nice letter from “Linda Spaulding,” or another opportunistic “grant broker,” who acquired $10,000 JUST FOR YOU!
Linda’s letter says you look like someone who could use some financial aid; now who can’t these days? You’re free to use the free money to cover tuition, start a business or pay your bills. Linda sends your first check (BBB reports claim a range from $975.50 to $4,975) with the promise of more, much more, to come.
You don’t have to repay the grant; all Linda asks is a finder’s fee or commission for her trouble. She provides instructions to return her commission by purchasing a GREENDOT® Reloadable/MoneyPak. “Commissions” have varied from 4% to 10%.
Linda provides honest-to-goodness instructions for obtaining the GREENDOT® MoneyPak. The max “load” on a GREENDOT card is $500, so Linda’s commission ironically never exceeds that amount. The instructions become more explicit and more conversational. You are directed to go to a Kinko’s to fax her the activation code. Linda’s customer service is tip-top, so she even includes directions to help you find a Kinko’s in the yellow pages and tells you where you can find the activation code on the GREENDOT card.
In no time, Linda drains the card. It’s not until days later you find out her first check bounces (it’s either counterfeit or drawn on a closed account). What about the second check? Well, our victims are still waiting.
The websites reported with this scam include: www.grantchecks.com, www.grantoutlet.com, www.beverlyhillsgrants.com. But don’t put too much stock on the web address. When attention shines on a fraudulent site, it shuts down and a new one is born. Clever scammers register by proxy to cloak their identity, so we may never discover who Linda and her friends really are. BBB recommends you should always look-up unknown web sites/companies.
Details your BBB wants you to know:
- High appeal/attraction to college students
- The counterfeit checks are often drawn on an active and verifiable account
- And, for this juicy little scam, the money is transferred to the scamster via the reloadable debit card and not through electronic wire transfer (a sneaky new way to trick your “suspicion radar”)
Now to clarify, GreenDot is a legit prepaid Visa and MasterCard service sold in retail locations. There are no credit checks, so it’s attractive and accessible to those who are a credit risk. The cards work as an ATM withdrawal and can be used to make purchases as one would use a credit card. Facts you need to know (taken from www.greendotonline.com):
- Purchase payment is up to $4.95
- Monthly charge $5.95 unless you load $1,000 per month or make 30 purchases excluding ATM withdrawals & monthly charge up to -$11.90
- ATM withdrawal = $2.50
- ATM Balance Inquiry = $.50
- RELOAD = $4.95
Currently, GreenDot Corp has a B- rating with BBB in Colton CA; 738 complaints within the past 36 months, with a little more than 90% of the complaints related to contract dispute or failure to provide refund once the card was cancelled. If you’re in the market for a pre-paid debit/credit card consider the costs.
And remember, there is no such thing as free money – please tell your friends, family and co-workers too! Don’t fall for these phony grant programs offering nothing but promises – promises don’t pay the bills!
Thanks for reading and watching Joce’s ScamAlert. When you need to find a trustworthy company check out our A Team Video Online Directory and find a BBB Accredited Business. Talk soon! Angie
