Gift cards: a scammer’s favorite holiday present
Prepaid gift cards are a popular holiday present. They are easy to find, can be loaded with a value of the customer’s choosing and allow the recipient to make their own purchases. But, gift cards can also be a versatile tool for defrauding consumers.
Protect money and identity by knowing how gift card scams work, and remembering fraud prevention tips. When buying gift cards for friends and family, they may be found sold in bulk or at discounted prices online.
Be cautious of these deals, as in some cases, after consumers bought them, they discovered the cards were expired or already drained of funds. Other buyers never received them at all.
Always buy gift cards directly from the retailer or an authorized seller. Never buy a gift card from someone unknown. Some online ads, or targeted email and text messages, offer gift cards as incentive to sign up for a sweepstakes or fill out a survey, but these are usually bogus offers.
The scammer will sell private information after they obtain it, without sending the promised gift card. Resist the temptation to hand over personal information in exchange for a gift card. Even if a real card is received, there’s no way of controlling what happens to personal data afterward.
When buying a gift card from a store, check it for tampering. Gift card thieves have been known to scan cards on kiosks or shelves, record the data, then drain the funds remotely, after a legitimate consumer purchases and activates them. Do not purchase a gift card that has been opened.
If possible, purchase a card that comes in fully enclosed packaging, which prevents it from being swiped by a card reader device or having the pin number scratched off. Some companies are taking steps to combat gift card scams and fraud. If a gift card scam happens, act fast.
Report the scam to the card company, no matter how long ago it happened, and ask for money back. If the card was frozen for a suspicious transaction or not yet drained, it may be recoverable.
For the best and most secure results, always encourage the recipient to spend their new gift card quickly, after receiving and activating it.
