Pre-paid card now a favourite with scammers

Crooks no longer choose cash as their preferred method of payment; instead, they prefer to get paid via prepaid cards. Scammers are now using debit cards that are preloaded in order to steal money away from consumers according to a new survey released this past week by the nonprofit Consumer Federation of America consumer group.

The survey took a look at almost 300,000 complaints and found that the top issues facing consumers are fraud, illegal credit and debit card services, misleading ads, car issues, and poor home construction or home repair issues. However, a growing complaint that was included in the mix is the use of prepaid cards by fraudsters to get paid for their activities.

Crooks enjoy using prepaid cards because they are hard to trace and you do not need to use a photo ID in order to spend or collect any money. In addition, while it can be hard to hold cash in your hands in large amounts due to the fact that it will start to get cumbersome, you can easily carry thousands of dollars on a card without any problems.

Western Union and MoneyGram have also placed additional restrictions on their wire transfers after the Federal Trade Commission cracked down on wire transfer fraud. This has caused many fraudsters to use a different unregulated financial product in order to transfer their funds around. In lieu of cash, they have found that prepaid cards are simply the next best thing.