Holiday Scam Alert

Dec 6, 2024 | 2 Minute Read
Stay Alert: Protect Yourself from Gift Card Scams
In recent updates from law enforcement, a known gift card fraud scheme is making its rounds across the country. These scams can leave unsuspecting consumers out of money and frustrated. It’s essential to stay informed and vigilant when purchasing gift cards, especially from physical retail locations. Here’s what you need to know to protect yourself.
How the Scam Works
  1. Tampering with Cards: Fraudsters remove gift cards from retail store displays, take them offsite, and compromise their security features (e.g., exposing or recording card numbers and PINs).
  2. Reintroducing Compromised Cards: The tampered cards are then returned to the store and placed back on the shelves, indistinguishable from untampered cards.
  3. Monitoring for Funds: Once a consumer purchases and loads funds onto the card, scammers monitor the card’s balance.
  4. Draining the Funds: As soon as funds are detected on the compromised card, scammers quickly drain the balance, leaving the buyer with a useless card.
Key Details from Recent Alerts
  • Targeted Stores: Walmart, Target, and Walgreens
  • Targeted Cards: MasterCard, Happy Birthday Vanilla Visa, Apple, and Raze Gold Gaming Cards
  • Notable Cases: In one instance in Massachusetts, two suspects were apprehended after compromising over 400 gift cards.
How to Protect Yourself
Here are a few tips to help you avoid falling victim to this scam:
  1. Inspect the Card Carefully Run your finger over the back of the gift card and examine it for tampering. Look for:
  • Barcode stickers placed over the original barcode.
  • Scratches or disturbances where the PIN or card number is displayed.
  1. Confirm the Balance and Keep Receipts Ask the cashier to check the balance of the card upon purchase and retain your receipt. The receipt serves as proof if you need to dispute any issues with the card.
  2. Stay Vigilant During Checkout Be cautious and keep an eye on the cashier during the transaction. In some rare cases, cashiers may attempt to swap your activated gift card with a used one. Cross-check the card you receive with your receipt to ensure it’s the correct one.
  3. Consider Safer Alternatives, When possible, opt to purchase digital gift cards directly from a retailer’s website. Many options allow you to print the card at home, eliminating the risk of tampering.
A Closer Look at the Fraud Process
This scam is sophisticated and organized. Here’s a breakdown of the fraudulent steps, as detailed by law enforcement:
  1. Obtaining Cards: Scammers remove cards from retail stores, often with assistance from lookouts or getaway drivers.
  2. Tampering Offsite: Security features are removed to access the card’s unique financial details (card numbers and PINs).
  3. Repackaging: The compromised cards are repackaged to look untouched, then returned to store shelves.
  4. Monitoring Balances: Fraudsters frequently check the balance on these compromised cards using manual methods or advanced tools.
  5. Draining Funds: As soon as funds are added to a card, scammers use the balance before the buyer realizes what’s happened.
Stay Informed, Stay Safe
Gift card scams are a growing concern, but you can protect yourself by staying vigilant and following these precautionary steps. Always inspect cards thoroughly, confirm balances, and consider digital alternatives when available. If you suspect a card may be compromised, report it immediately to the retailer and your local authorities.
By staying aware, you can outsmart the scammers and keep your hard-earned money safe.