FTC Clamps Down on Favored Payment Methods by Crooks. The Federal Trade Commission (FTC) has adopted new rules to ban the use of payment methods often preferred by scammers and fraudsters. The methods often act like cash and are hard to trace the transaction or to recover the funds. The now banned methods include:
· Money transfer services, including Western Union, MoneyGram, and RIA Money Transfer.
· Cash reload cards such as MoneyPak, Vanilla Reload, and Reloadit. Also banned are services that add money to existing prepaid debit cards.
· Remotely created electronic checks. In this case, the scammer will ask for the routing and account numbers found on your checks and then withdraw the funds directly from your checking account.
Under its rule making authority, the FTC has banned these methods. Now, if a telemarketer asks for payment by any of these methods, they are breaking the law. If you receive a call from a scammer asking for payment by any of the banned methods, the FTC asks that you report them to the FTC at https://www.ftccomplaintassistant.gov/#crnt&panel1-1.
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