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BEWARE—The Holiday Gift Card Scam

I don’t know where you live, but if you reside anywhere around the Midwest portion of the United States then you may have heard about a new scam involving gift cards. Thousands of victims have flooded area Better Business Bureaus with their tragic stories of being ripped off.

Here’s how the scam works: Scammers go to a store where gift cards are hanging on a rack. They then copy numbers and merchant names from these gift cards. They wait a week or so and then call the 800 number that was on the back of the card to find out if the card has been activated. If it has, they go to the store’s website and start shopping – using the stolen gift card number as payment. The unsuspecting recipient of the gift card later discovers that the card’s balance has been drained.

If you are requesting gift cards this holiday season or planning to give them as presents yourself there are tips you should consider to avoid becoming a victim of a scam artist:

• Don’t buy gift cards that are easily accessible to the public. Many department stores keep their cards behind a counter—some even still offer hand-written gift certificates—those are your best bets.

• Prior to purchasing a gift card thoroughly examine it–make sure it hasn’t been tampered with. For example, look to see that it hasn’t been removed and then replaced back into its cardboard holder.

• Don’t buy gift cards from Internet auction sites or clearinghouses. Often times, those gift cards turn out to be stolen.

• When purchasing a gift card, keep the receipt as proof that you paid for it.

• Before you leave the store have the clerk scan your new gift card to make sure that the balance is correct. Thieves have been known to steal new gift cards and replace them with old, used gift cards and they get away with it because when the bar code on the package is scanned, the stolen card is activated and then victims are left with worthless gift cards.

Other Scams To Look Out For:

BEWARE! New Mail Scam

A Warning For People Who Pay Bills Online

Travel Alert: Hotel Scam

A Warning To Oprah Fans

How To Protect Yourself From Being Scammed On Social Networking Sites

Tips To Avoid Getting Scammed

This entry was posted in Home & Travel Safety and tagged , , , , by Michele Cheplic. Bookmark the permalink.

About Michele Cheplic

Michele Cheplic was born and raised in Hilo, Hawaii, but now lives in Wisconsin. Michele graduated from the University of Wisconsin-Madison with a degree in Journalism. She spent the next ten years as a television anchor and reporter at various stations throughout the country (from the CBS affiliate in Honolulu to the NBC affiliate in Green Bay). She has won numerous honors including an Emmy Award and multiple Edward R. Murrow awards honoring outstanding achievements in broadcast journalism. In addition, she has received awards from the Aircraft Owners and Pilots Association for her reports on air travel and the Wisconsin Education Association Council for her stories on education. Michele has since left television to concentrate on being a mom and freelance writer.