| Gift cards have become a standard part of the modern shopping experience. But inside that colorful card kiosk could be a minefield. Here’s what you need to know before purchasing one.Gift card sales rose from $130 billion in 2015 to $173 billion in 2021, and while they are popular with consumers, they are also popular with criminals because they can be purchased anonymously and redeemed remotely.There are two typical scams involving gift cards: someone buys a gift card only to later find that it has no balance on it; and someone is instructed to purchase gift cards and share the numbers as a form of payment. |
| Zero-Balance Gift Cards Criminals have several ways of draining gift card balances. In fact, a 2022 AARP survey found that one in four adults said they had given or received a gift card that turned out to have no value on it.To combat these scams: •Purchase cards online directly from the business that issues them. Cards on store racks can be tampered with. •Carefully examine cards at a physical store for signs of tampering. It’s safer to buy from places that keep gift cards behind the counter or near the checkout where watchful eyes may discourage criminals. •Register your card with the retailer if that option is offered. This makes it easier to track and quickly report any issues. Gift Card Payment ScamsGift cards as a form of payment in scams has been a popular tactic for the last five or so years. According to data from the Federal Trade Commission, reports of this fraud are down 25% in 2022 compared to the prior year. However, reported losses were roughly the same, suggesting that per-card losses were higher in 2022.Here’s what you should know: •If you are confronted by someone directing you to buy gift cards to pay for something or send money, it is a scam—full stop. •Disengage immediately and report it to the Federal Trade Commission at reportfraud.ftc.gov. The reports are used to identify trends and build cases against criminals. •If you have lost money to this act of fraud, report it to your local police and insist they take your report. Some police lack awareness that scams are a crime and resist taking a report. Be persistent—it may help you recoup losses if the criminals are brought to justice down the road. Reprinted from AARP Fraud Watch Network. |