PHOENIX — They are easy, desirable, and will likely be the most popular holiday gift, but gift cards come with risks.
Some people are finding out their new gift card has zero balance.
A Phoenix shopper told me it happened to her.
"They said the money wasn't on it or anything so frustrating because I had so many things in my cars," she said.
Authorities say scammers are going through card racks, scratching off the codes, and taking down numbers.
They replace the code covers with stickers, like those we found sold cheaply online.
The scammers can then access activity knowing when the card is sold and loaded.
They swoop in and take the funds.
With the gift card industry expected to reach $188 billion in the U.S. this year, it's a growing problem.
Rick let me know it just happened to him.
He says he bought Target gift cards "2 @ $25 and 1 @ $50."
When he went back to find "which one is the $50 card" they scanned and told him they were "tampered with and they showed a $0.00 balance."
Protect yourself.
If the cover or access code feels rough or doesn't align, it could be tampered with.
Rick says he was told the card should be able to separate easily from the packaging.
If it's been tampered with like his card, the scammers used a permanent glue so part of the packaging sticks and peels off.
If you are a victim, go back to where you bought the card with proof of purchase and balance, and contact the business on the gift card.
It's safer to buy a gift card online, send an e-gift card, or just go old school and avoid the issue altogether as one shopper told me.
"I just put money in a card and let them do it themselves," he said.
Rick says Target just sent him a $100 e-gift card giving him all of the money he paid.
Thanks to Target for stepping up.
I asked Target, Walmart and Amazon about their policies.
Target replied saying:
"We are aware of the prevalence of gift card scams and take them very seriously. We have signs in our stores and share general safety tips with our team members so they can stay alert and help guests as best as they can at our registers. Our centralized cyber fraud and abuse team helps educate our team members about common scams and encourages them to look for guests purchasing high dollar amounts or large quantities of gift cards, or tampering with gift cards in stores. Guests who believe they have been victims of fraud should contact our guest relations team at 1-800-440-0680 and the team will work to find a solution."
Here are some helpful tips for guests to avoid fraud.
You can also visit Target.com and Target's security hub for helpful tips to avoid gift card fraud, common gift card scams and additional resources for prevention and reporting suspicious behavior.
Amazon says:
"Customer trust is a top priority. Amazon works to safeguard products and features from misuse. Customers who encounter any issue claiming Gift Cards whether purchased on Amazon or a third-party location are encouraged to contact Amazon's 24/7 customer service. More information on how to identify and avoid gift card scams can be found on our common gift cards scam page."
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