California’s refund cards are under attack by thieves. Here are some warning signs

California was created to alleviate the high gas prices. has been sending a Middle Class Tax Refund For eligible households, the price range is $200 to $1.050

A portion of this amount ended up in the hands opportunists.

Californians, who received grants in the shape of a grant, have been targeted for theft. prepaid debit card Distributed by the Money Network, an independent contractor of the state Franchise Tax Board. Unknown numbers of residents reported that their cards were taken by fraudsters shortly after they began using them.

Californians claimed that they were robbed of their money before activating the card. according to KGOThe ABC TV affiliate in San Francisco. KGO reported that many of those who attempted to reach Money Network for aid couldn’t get through.

Money Network did not respond to The Times’ request for comment.

Andrew LePage, a spokesman for the Franchise Tax Board, said the board was aware that some recipients had filed fraud claims with Money Network, adding, “Under the terms of FTB’s contract with Money Network the MCTR debit card program is expected to run with less than a 1% fraud rate, and currently Money Network reports that the rate is well below that level.”

With more than 9 million cards issued, though, just 0.5% would still be a large number of victims — 45,000, representing potential losses of $9 million to more than $47 million.

LePage stated, “Given the size and scope of the MCTR program we expected the possibility of fraud.” “FTB and Money Network will take every fraud claim seriously and will investigate each individual claim. We will ensure recipients get the payments that they’re eligible for.”

Here are some ways to protect the money you were sent by the government and what to do if you suspect you have been scammed.

Why are prepaid card vulnerable?

At least some Money Network cards went out without a security card that would make it easier to steal the information stored on them, including the name of the recipient, account number and the three-digit security codes on the back. These cards are susceptible to “skimming”

You must swipe the card through a reader to use it at a restaurant or retailer. After that, either enter your pin into the reader or sign a receipt. Some card readers have been stolen by thieves who use a “skimmer”, which collects information from the magnetic strip. The thieves use this information to make online purchases using the card, without requiring a PIN or signature, and drain the balance.

Sometimes, thieves may also hide a pinhole camera in order to record the PINs that are entered into the keypad along with the magnetic strip information captured and saved by the skimmer.

Cybersecurity expert and author, John A. Smith, said that the “secret to the prepaid card” is the key. Adam Levin“Is the holder the owner, regardless of who may be holding it?”

In other words, the card can behave just like cash and can be passed around from person to person. The information on the magnetic strip can be used to hold the card or to perform transactions in which the card is not required to be present.

This problem isn’t unique to the tax refunds — skimming and other forms of fraud are potential problems for any prepaid card. This is an example CBS News reported Five ATMs in Thousand Oaks were discovered to have skimming devices that thieves used to target unemployment benefit debit cards in 2021.

A card that has a security chip can be used to make purchases by simply tapping the card on a reader that is equipped for that purpose. But those cards also come with magnetic strips because some businesses — for example, gas stations with older pumps that have built-in card readers — still rely on the strips to complete transactions. These cards are susceptible to being skummed.

Levin pointed out that both types cards are equally susceptible to “eskimming.” Hackers can upload malicious software onto a website of a retailer to steal the credit-card data entered by customers. Sadly, he said, “there’s absolutely no way for consumers to know it’s happening.” The thieves will only inform them.

The FTB and Money Network aren’t sharing the details of how fraudsters were able to steal refund cards from Californians. There may also be other reasons than skimming. Levin suggested that the malware could have infected card recipients’ computers with malware that recorded their card details while they made online purchases.

“You’ve got a number of extremely sophisticated rings” defrauding the public, he said, including state-sponsored ones in North Korea and other countries. These groups are always trying to get information via hacking and trickery that they can use in order to drain funds from their victims’ accounts.

Levin added that data breaches such the large one at Equifax credit bureau in 2017 Internet access has made it possible to store a lot of personal information online. This makes millions more vulnerable to identity theft. “We’re living in an era where we are incredibly vulnerable,” he said.

It’s possible that cards were stolen from some users before they were activated. However, this is not a problem of skimming. Levin stated that this suggests that thieves may have gained access to account information prior to the cards being sent.

How to prevent fraud

Signing up for direct deposit with the FTB would have been the easiest way to get your Middle Class Tax Rebate directly into your bank account. The board reported that approximately 7 million people received money directly from the FTB, while 9.1 million were issued debit card.

However, for those with cards and the few that are due to be issued, there are a few things to do. reduce your risk:

• If you have one, transfer all funds from your debit card to your account. This can be done at no cost through mctrpayment.comVia the Money Network mobile phone appCall (800) 240-0223. Money Network outlines the steps for its users. Frequently Asked Questions page.

• Sign up for transaction alerts by downloading the Money Network mobile application. This will allow you to quickly find out if your card is being used by someone else. If you suspect that there are problems with your card, or if it isn’t being used for a while, you can lock it using the app. Money Network recommends reviewing transactions and checking your balance through the app.

• Follow these instructions FBI’s advice Here are some tips to help you avoid skimming. Avoid using ATMs and card readers with damaged, loose, or scratched parts (which could be a sign that someone is skimming); use ATMs only in indoor areas; cover the keypad when entering your PIN; and be especially cautious in tourist areas as criminals are known to target these locations.

• Do not respond to any text messages, emails, or phone calls asking you to activate or reactivate your prepaid card. According to the state attorney general’s office, “The FTB will not contact you by text, email, or phone. Don’t give out personal information to anyone who contacts you in this manner, even if they claim to work for the government. You should not be taken in by fake-looking emails, texts, or phone numbers. Scammers could spoof all of these things.

• The FTB advises that you don’t give out your card information unless you speak directly with Money Network or your bank or make a purchase from trusted sellers. Remember that neither your bank nor Money Network will ask for your account password, PIN, or full Social Security number.

Theft from your prepaid cards account is possible

By lawAny unauthorized charges made to your card are eligible for reimbursement

Money Network and FTB say that if your card was used without authorization, you should immediately call Money Network at (800), 240-0223. However, the FTB states that the phone line can only be manned from 8 a.m. through 5 p.m. on Monday through Friday.

To get to the destination, you will need to navigate through several automated responses and scripts. Press 1 to access customer support, then enter the card number. You’ll then need to press 2 for the main menu and 6 to dispute any unauthorized charges.

LePage claimed that the FTB is “jointly involved in work to examine potential fraud to ensure taxpayers have protection and receive the money they are entitled to.” But you’ll have to wait to be made whole — the FTB says fraud claims can take 45 to 90 days to resolve.

This story was originally published in Los Angeles Times.