LAKEPORT — With inside knowledge of credit card functions, a man with suspected fake out-of-state identification allegedly scammed a Lakeport bank out of $4,400 Monday to Wednesday.
The man allegedly used a prepaid credit card and asked the tellers to make multiple $400 cash advances in a row because he said the card had a $400 limit, Lakeport police officer Norm Taylor said. However, the card was only worth $400. He came back two days in a row to different tellers and asked to do the same thing. The prepaid card was similar to a gift card and didn”t have a name printed on it.
When a teller runs multiple transactions back-to-back, the credit card verification thinks it”s duplicate transactions and approves the cash advances, Taylor said.
“He definitely has some inside information on how credit cards operate,” Taylor said. “He”s trying to capitalize on a loophole in the process.”
Lakeport police only know of one bank the man allegedly scammed, Taylor said.
In this case, Taylor thinks the credit card company likely won”t pay for the advances and the Lakeport bank will be left with the cost.
Taylor said businesses should be wary of people with out-of-state drivers licenses and customers who ask employees to do something that”s not normal procedure.
Most importantly, Taylor said businesses should wait several minutes before running multiple cash advances on credit cards.
Contact Katy Sweeny at kdsweeny@gmail.com or call her directly at 263-5636, ext. 37.
