Lindsey Collom
The Arizona Republic
Aug. 10, 2004

At a time when fraud crimes are on the rise in Phoenix - up 300 percent from 1999 - an Austin-based credit company is becoming a common tool for criminals preying on credit-card users, Phoenix police say.

NetSpend Corp. issues temporary prepaid credit cards from check-cashing facilities throughout the Valley. The problem, police say, is that the cards are easy to alter and have been popping up in a number of fraud investigations.

The card is green and is the size and shape of a credit or debit card. What sets it apart from other cards is the lack of raised numbers. Instead, it has a 20-digit number printed on the back.

Police say criminals alter the card by disabling the magnetic strip and placing a label with a stolen credit card number over the original number.

Police say a woman bought several hundred dollars in gift cards using credit information for Sen. John McCain, R-Ariz., and his wife, Cindy, and did so with a NetSpend card, according to a report released Friday by Chandler police.

Toni Marie Baker, 27, of Peoria, was arrested July 15 for credit card fraud and identity theft.

The latter charge did not involve the McCains.

A Federal Trade Commission survey released last week indicated that more than one in 10 Americans were the victims of fraud between May 2003 and May 2004. To prevent credit card fraud, Detective Paul Weishaar of the Phoenix police Document Crimes Unit recommends that card-holders review their monthly statements and destroy all receipts.

It doesn't take much for someone to create a fake credit card using a stolen number, Weishaar said.

"You don't have to have a bunch of sophisticated machines to try to make credit cards," he added. "With (NetSpend), you just need a card and a labelmaker."

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