Phones 4U staff have raised concerns that the retailers ‘escape’ prepay Mastercard credit cards may attract fraudsters and money laundering, due to credit checks for the cards being much less detailed than for mobile contracts.
The credit check for the cards, that have a maximum cash limit of £650, do not require staff to scan identification for Phones 4U’s head office to verify.
Instead, staff claimed customers could provide any name and address, enabling cards to be taken out on a different person’s identity.
Staff also admitted to adding the cards onto contract deals and running the low-security credit checks without informing customers in order to achieve store targets.
The sales provide stores with £50 gross profit, which contributes towards sales targets, as well as £1 commission for ‘escape’ cards and £2 for the ‘neon’ cards, which do require higher-level security checks.
One staffer said: “I’m not keen on the cards. You don’t know who the customer is and they could be money laundering with your help.
“Bigger stores that are under more pressure to sell, will sell more cards by adding the cards onto a sale without much explanation.
“I’ve seen staff congratulate customers for ‘winning’ a free card, or telling them they’re eligible for a free card to make a sale.”
Phones 4U said it had not seen any evidence of any fraud relating to the purchase of the cards.