Posts Tagged ‘ Holiday Shopping ’

Off-the-Rack Gift Cards Newest Scam Target

December 23rd, 2011. By AbiK

Desperate for a holiday gift? No clue what they want? That’s when that strategically placed rack of gift cards in whatever store you’re in is like manna from heaven. It’s a plastic mall at your fingertips: Starbuck’s! Macy’s! Bed, Bath & Beyond!—even Cracker Barrel! The teacher, in-laws, crossing guard, and third cousin once removed? Gotcha covered.

Ah, but now there’s a gift card scam that’s going ’round and these gift card displays are the perfect target. Gift card scammers simply scan or copy the account number that’s visible on the backs of most gift cards. Then they put the card back on the rack and wait for someone to purchase it and, therefore, activate it. Once the card is activated, it’s currency. And that’s when the scammer goes online and shops a go-go.

Of course, most gift cards have a PIN number as well on the back of the card. But unless that PIN is hidden behind the packaging, it can be difficult to tell at first that the card has been tampered with. If the gift card PIN is only hidden by a scratch-off coating, all the scammer has to do is scratch it off—and how often have you picked up a gift card in a hurry and not really looked closely at the back of it?

Here’s how to avoid getting gift card scammed yourself:

1. Save the receipt. As with any purchase, your receipt is your proof of purchase (and proof of rightful owner). Most stores will replace the purchased balance of a lost or stolen gift card–but you need that receipt.

2. Look closely at the back of the gift card. If the card is in anyway damaged, or the PIN has been revealed, don’t buy it.

3. Go for e-certificates. Many retailers now offer the option online to purchase email gift certificates. Most will also offer you the option to either email the gift certificate directly to the recipient, or print it out to deliver in person.

Bottom line is remember: what’s convenient for you is probably also convenient for a scammer. Buyer beware. And happy holidays everyone!

Tags: Gift Card Scam, Gift Cards, Holiday Shopping
Posted in Consumer Fraud | 3 Comments »