Gift cards are meant to spread joy, but for scammers, they’re a gold mine. Criminals have found sneaky ways to trick shoppers, turning a thoughtful gift into a naughty no-good deed.
If you know the tricks to watch out for, you can outsmart the crooks.
Trick #1: The display rack scam
Here’s what happens: you see a gift card on the store rack and you take it to the counter and load it with the dollar amount you want. Then, when your loved one tries to use the gift card, it says there’s a zero balance.
Scammers have likely tampered with the gift cards on the display rack at retail stores. They’ll record the activation code on the card or put a barcode sticker over the real barcode. The cash you load onto the gift card will go to the scammer's card instead.
Here’s how to protect yourself:
- Check the packaging of the gift card before you buy. Look for signs of tampering.
- Check for stickers over the barcode or card numbers.
- Choose a gift card from the back of the rack, it’s likely the scammers put the fake cards at the front of the display.
Trick #2: The resale gift card scam
Several online platforms will allow you to buy and/or sell gift cards. It appears simple but be careful because scammers will try to sell you a gift card at a discounted price or buy your unwanted gift card for cash.
In the end, the scammers will either send you an empty card or take your card and send you nothing.
Here’s how to protect yourself:
- If you want to buy or sell gift cards only do so from reputable sources.
- Use authorized reseller sites and apps only.
- Don’t trust strangers online, especially if the deal sounds too good to be true.
Trick #3: The fake balance checker scam
Got a gift card? Want to check the balance? Yes, there’s a scam for that.
Scammers have set up fake websites or phone services that appear to be legit. You put in your gift card number and pin to verify your balance and once the information is entered, scammers instantly drain the funds from your gift card.
To avoid this scam:
- Always use official websites and apps.
- Check to see if there’s a website on the back of the gift card.
- Use caution if you get an unexpected call or text asking for your gift card information.
If you have been a victim of a gift card scam, you can report it. You can also reach out to the gift card company. To find out how, visit the Federal Trade Commission for more information.
