Gift cards make good presents – and scams

Shoppers searching for the perfect holiday gift may choose a gift card as a thoughtful and considerate present. However, the Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) advises shoppers to think twice, before using prepaid credit cards or gift cards to make payments of any type.

Scammers convince their victims to submit payments, via gift cards in many ways. They may set up fake sales listings or other too good to be true offers, and contact the consumer, demanding payments for an outstanding debt or threaten disconnection of utilities.

Fraudsters might even send a check in the mail, asking the consumer to put the money in an account, then ask them to send money back, via prepaid credit card, because of “overpayment.” By the time the bank recognizes the check is fraudulent, the money is long gone.

“Imposters prefer payment by gift card, because these cards are like cash,” said Lara Sutherlin, Division of Trade and Consumer Protection administrator. “Once you turn over the card number, you cannot cancel, refund, trace or reverse the transaction. This may leave the victim out hundreds or even thousands of dollars.”

Anytime someone demands payment by gift card or prepaid credit card, assume it is a scam and halt communication immediately.

If shopping for a gift card to give as a present, follow good consumer protection practices by reading the fine print at the time of purchase; inspecting the packaging to ensure any protective stickers are still in place, and that the card numbers and PINs are not exposed; and giving activation receipts to the gift recipients.