AmEx Shutting Down REDbird Accounts? (Possible Hoax)

Here’s another scare regarding your REDbird (Target AmEx REDcard). There’s a few people claiming to have received emails from American Express with notices of account shutdowns. A reader in flyertalk forums was apparently the first to report such an email, but there’s been some other reports as well.

“We are writing to you today regarding your Target Prepaid REDcard Account.

During a recent review, we have noticed several instances of unusual/irregular activity on your Targed Prepaid REDcard Account.

Repeated suspicious activity on your account has been documented as follows:

Register “Cash” Reloads in $1000 or $500 increments
Withdrawals and/or bill pays equal to the account balance immediately following “Cahs” Reloads

American Express and Target have determined that you are not using this account for its intended purposes and have deemed your relationship with us unsatisfactory. Your account has been closed effective immediately and a check for the balance of your account will be sent to that address on file within 60-90 days.

You are not eligible to reopen another Target Prepaid REDcard Account. “

Here’s another email

People sometimes are selfish and try to keep others away from good opportunities. So I’m still on the fence about this one. It is a bit weird that AmEx would go into such detail regarding transactions and card usage. I did receive an email regarding my REDcard today, but it was promoting its features such as 5% back and free shipping, cash withdrawals and bill pay.

I’ll watch out for more information on the matter and I’ll update the post continuously. In the meantime, here’s a few suggestions to make sure you’re safe, in case this is real.

1. Keep a small balance on your REDcard in case you need it to make purchases at Target (and get 5% off).
2. Do not do a closed loop (Load money with Card X and pay Card X with your REDcard)
3. Make bill pays in realistic amounts.  Not many people have credit card bills of $500, $1000 or $2000.
4. Do not load and then bill pay right away the same exact amount
5. Use the card at Target and occassionally at other locations to make regular purchases

Loading even number amounts shouldn’t be a problem in my opinion. Most people would load $500 or $1000 into their REDcard accounts if they’re planning to shop at Target. Very rarely you would see someone trying to load a specific amount of $847.91.

Let us know your thoughts and tips!!!