Gift cards are a popular token of appreciation, regularly presented to people for birthdays, public holidays, and other special occasions. They can be purchased online, or at any major retailer, and are an easy access point for scammers looking to make a quick buck off of innocent shoppers. It’s likely you or someone you know has been the victim of some form of gift card fraud at some point, and the repercussions can range from irritating to downright devastating.
If you’re looking how to avoid gift card scams, and plan on encouraging family and friends to do the same, we have the information you need. Last year alone, $217m was lost to gift card fraud – a shockingly high number, and not something to take lightly.
Common Gift Card Scams
Gift card scams are a form of fraud revolving around the falsification and theft of gift card details, often resulting in money being transferred from unsuspecting people straight to criminal pockets. These scams can take various forms. Phishing is a common method of gift card scam, and is often based on the impersonation of authority figures and representatives from reputable companies. Messages are sent encouraging people to take urgent action to resolve an issue, or settle a payment. They may suggest purchasing a gift card as a means of solving the problem. Card draining, which involves s tealing information from gift cards in stores, so that when they are purchased and money added to their balance the money can immediatel withdrawn by the scammer.Telltale Signs
Some of the signs of a potential gift card scam include:- Any requests for payment in gift card form. Treat any such requests with a healthy amount of skepticism – how many genuine entities encourage payment via gift card?
- A sense of urgency and confidentiality. This is to pressure you into acting quickly, and not allow you time to verify the legitimacy of the request.
- Unsolicited communications from unfamiliar sources. It pays to be wary when you receive any kind of correspondence from an unknown or suspicious source.
- Damaged goods. If you’ve purchased a gift card that appears to have been tampered with, return it to the retailer and ask for a replacement – the damage may have been caused by someone stealing the card’s details.
- Gift cards that cover unusual purchases. For example, you wouldn’t usually be expected to settle debts or pay for tech services with gift cards.
Tips for Avoiding Gift Card Scams
- Never share gift card information publicly, or with people you don’t explicitly trust.
- Verify all requests for payment with the company it’s claiming to be from. Contact them directly, outside of the channel of the suspicious request. Don’t take any action until you can confirm the legitimacy of the message you’ve received.
- Stay up to date with fraud trends, and pay attention to scams that have been reported in your local area. If a particular retailer reports a rise in gift card fraud, you know to avoid purchasing gift cards from there for the time being.
- Educate your family and friends on the dangers of gift card fraud and encourage them to remain vigilant. Your personal experiences can help to raise awar, and might help people who are less informed to recognize they are being scammed.
