FTC bans use of wire-transfers, reloadable cash cards by Telemarketers

The FTC has enacted a new rule, banning some of the payment methods used by Telemarketing scammers: a cash-to-cash money transfer (like Western Union or MoneyGram) or a “reload” card, used to load money on a prepaid debit card.

This is all fine and good, but the problem is that the scammers will still do it. Just like they ignore all the other Telemarketing Sales Rules. The best that this will do is help get the word out to a few more people. Unfortunately, I don’t think many of those susceptible to these scams keep close tabs on the FTC’s web site, or likely other places that warn of scams. Otherwise, the previous warning would have worked.

Walmart and Wells Fargo employees should keep these rules in mind for when people use these, though. As sellers of these untraceable instruments, they are the best hope in the front line in fraud prevention. And there are several stories out where such employees have saved someone from a financial mistake. We salute you!

In fact, you should be skeptical about any telemarketer that pressures you to pay a certain way. Credit cards offer you the most protection, but even then, you’ll want to make sure you aren’t dealing with a phone scam. – FTC web site

While this is good advice, you should be skeptical about any telemarketer unless it is someone known to you and you have a pre-existing business relationship. And even then, make sure to confirm it really is them, too. Just in case.

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