A recent class action lawsuit claims that Walmart negligently allows scammers to steal Green Dot prepaid Visa card information.
Walmart offers several prepaid Visa cards, including products through Green Dot Bank. According to a recent Walmart, Green Dot class action, these cards may be susceptible to fraud.
Plaintiff Guillermo Espinoza says he purchased two $500 prepaid Green Dot Visa cards in February 2019, which he intended to use to pay his rent in March.
The day after he purchased the Green Dot cards, Espinoza reportedly attempted to make a payment on his rent only to be denied several times due to “insufficient funds.”
Espinoza allegedly went back to his local Walmart and asked an associate for guidance. The employee reportedly told him to try again later in the day or the next day, “stating that she believed it may just take a few days for the cards to activate.”
In the same day, Espinoza reportedly called the toll free number on the back of the cards and was told by the automated system that his cards had an available balance of $499 and $500, respectively.
On March 1, Espinoza reportedly repeated the process and learned that one of his cards had a posted transaction for $498.74 at a Walmart in Hemet, Calif. His other card reportedly had a “nearly identical” transaction for a $497.74 charge at the same Walmart.
“Upon seeing the charges to the Plaintiff’s Greendot cards, Plaintiff was furious, confused, and anxious as he needed the funds to pay his rent,” the Walmart, Green Dot class action claims.
Espinoza reportedly attempted to dispute the fraudulent charges with Green Dot but the bank allegedly directed him towards Walmart. He says he called the Hemet Walmart where a floor manager told him that similar “scams” had recently occurred. Information from the prepaid cards was reportedly “compromised.” According to the Walmart Green Dot class action, the manager allegedly told Espinoza “…as soon as they get activated a hacker can liquidate the gift cards.”
Following this conversation, Espinoza was allegedly directed to corporate Walmart’s fraud hotline. He reportedly opened up an investigation with the hotline and filed a police report. After sending his information to the hotline on March 2, Espinoza was reportedly forced to wait while the company investigated. He allegedly called every three to four days to request updates but was given no information.
On March 15, Espinoza reportedly checked again on the investigation and was told that Walmart could not do anything to help him because they were “not liable for those Visa gift cards.” He was then directed back to Green Dot Bank despite having already talked to the company. Green Dot allegedly said they too were not liable for the cards and suggested that this sort of scam was common.
According to the Walmart, Green Dot class action, Espinoza was told that scammers obtain the Green Dot card information prior to genuine purchases. After customers purchase the cards, scammers reportedly attempt $1 purchases to see if the cards are activated. After the products are activated, scammers are allegedly free to spend the rest of the available balance.
Espinoza argues that Walmart and Green Dot Bank do not sufficiently protect the information on the pre-paid cards, making them susceptible to scams and fraud.
“Walmart chooses to sell its Greendot funded Visa Debit Cards in unsecure packaging, wherein the identifying information is exposed to any third parties who come in contact with the Visa Debit Card prior to selling the cards to unsuspecting consumers,” the Walmart class action claims.
Espinoza seeks to represent a Class of California consumers who purchased Green Dot Visa prepaid cards from Walmart with balances of more than $50.
Did you purchase Walmart Green Dot Visa cards only to have the funds fraudulently stolen from you? Share your experiences in the comment section below!
Espinoza and the proposed Class are represented by Ahren A. Tiller of BLC Law Center APC and Abbas Kazerounian of Kazerouni Law Group APC.
The Walmart, Green Dot Prepaid Cards Class Action Lawsuit is Espinoza v. Walmart Inc., et al., Case No. 3:19-cv-01972-MMA-RBB, in the U.S. District Court for the Southern District of California.
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372 thoughts onWalmart Class Action Says Green Dot Prepaid Cards Are Compromised
My granddaughter just bought a Green Dot Wall Mart Card a few days ago and cannot access any of her Holiday gift money. Wall Mart says they cant help. Green Dot puts us in a computer loop. Wall Mart and Green Dot as SCAM Businesses. DO NOT USE.
I purchased a gift visa debit card for my dads birthday and when he tried to use it, he couldn’t. He went online and seen there was only 9.81 on the card. In order to see transactions you have to register the card. It was already registered. When i called the customer service number it gave me all the transactions and they definetely charged $1 to see if it was activated. Then they charged more items. There is no one to talk to for this issue and all walmart can say is they have nothing to do with it after it gets loaded. These cards should be taken off the shelves if this is what’s happening. They should be liable for information being stolen before these cards are purchased. How do i become a part of this class action
I just purchased a $500 Prepaid Walmart MasterCard. I went home, opened the package and attempted to register it.
It wouldn’t work. It’s impossible to reach a person from the # on back of card. I used chat and opened an investigation. Within 24 hours Green Dot said was my doing and won’t offer any more assistance. I’ve been scammed for $500.
Call Consumer Fraud Legal Services, 1-800-568-0430. Green Dot Bank screwed me out of over $700 and this company won a $3,500 settlement against them. These lawyers work on a contingency basis meaning that you don’t pay them anything unless you win. What Green Dot doesn’t want you to know is that once a contingency lawyer files a case with the American Arbitrators Association, if an arbitrator has to decide, it costs them at least $4,000 as Green Dot has to pay the arbitrator. They are thus quick to settle. Please don’t let them do this to you. I can relate to the sense of hopelessness you must feel right now, so please don’t let them get away with this.
Thanks for your advice. I have many fraudulent charges on my Green Dot Debit Card. They post a form on their website for the dates that the fraud occurred. From what I learned from others that they will not reimburse you for the money that I lost. All of my claims come from Murphy USA that has refused my request to investigate. I will be moving to a regular bank account soon.
Hi John, I am a victim of this. Please email me at [email protected]. I have a couple questions if you don’t mind. Thank you.
Me too
Same here…..but I have evidence and witnesses that agents within GreenDot are committing Aggravated Identity Theft , Conspiracy to Defraud The USA, and subverting the lawful jurisdiction of the Enforcement and Judicial branches of the US Government. …..Sedition for Continuing Financial Crimes Enterprise. COUNT ME IN.
Same thing happen to me and they acting like it’s something I did when I never used the card was waiting to pay my car insurance
Then they give me a confirmation number and when I give it back to them on the phone they saying it’s still in process, but they want to send me another card but where is my
$196.78 at for my car insurance, green dot is a robber without a gun
This happened to me as well. No actual person or way to talk to Green Dot. They blame Walmart. Wal Mart blames them. They didn’t lose a dime. I did. Over $350 on two cards I purchased in 2016. I quit even calling bc there’s no resolution, except no resolution. Once again, Walmart greed is disgusting. Their money is infinite, mine is nowhere to even being comfortable. Disgusting.
Has also happened to me. Have spent 3 weeks where no one seems to be liable. Money was spent almost as soon as the card was activated yet the card was still in its packaging and in my possession the entire time.
This happen to me also thry green dot but i had bought my card atbsafeway
What was the out come
I’ve had to get multiple cards from them due to fraud and everytime a file a dispute I get the same answer that there’s nothing that they can do. Just recently some hit my card for $626.70 and paid 2 at&t bills down in Dallas, TX. I live in baltimore and don’t even have at&t as a cell phone provider. I’m still wait to hear back from them and it’s been almost 3 weeks. Add me to the lawsuit.