Online scammers were using Green Dot to accept payment. The decision to suspend the sales of the cards could cost the company an estimated $10 to 40 million in operating revenue, explains Matthew Goldstein for The New York Times. Green Dot's share price declined by 30 percent after reporting it missed Wall Street earnings expectations, and the loss of MoneyPak sales has caused the company to express pessimism regarding its 2015 outlook.
One creative swindle involving the cards was pulled off by a scam artist calling home telephone numbers claiming to be with the Roanoke County Sheriff's Office and telling his targets they had ignored summons for jury duty, reports Dan Casey of The Roanoke Times. He even managed to rig his mobile phone to display ROANOKE COUNTY SHERIFF on victims' Caller ID. Threatening his victims with arrest, he instructed them to go to the nearest outlet and purchase two $500 Green Dot MoneyPak cards and provide him with the scratch-off covered pin numbers on the back of the card, enabling him to grab the money and disappear.Learn more about Personal Banking