contact: info@hpg.com
November 2008
Watch out for gift card scams
If past holiday seasons are indicative, this year the average consumer will spend over $100 on gift cards from a wide variety of computer stores, upscale restaurants, clothing outlets, and other businesses. Gift cards are also big business. This year alone, company revenues from gift card sales are expected to exceed $20 billion.
Unfortunately, gift cards don't just provide a convenient way to give your friends and loved ones "just the right thing." They also give thieves an opportunity to make off with your money.
Consider this scenario: A thief saunters into your favorite retail store and grabs a handful of gift cards from the public rack. In an out-of-the-way place like a restroom or dressing room, the crook pulls out a magnetic strip scanner and inputs each card's unique serial number. The cards are then replaced on the rack or left elsewhere in the store. Every few days thereafter, the thief calls the company's activation number and enters stolen card numbers to determine whether the cards have been activated. If they have, that's the green light to start an online spending spree. By the time legitimate purchasers (or gift card recipients) try to use the cards, the balances have been depleted.
So much for the perfect gift.
According to the FBI, there are over 14,000 scam artists at work on any given day. Perhaps the information presented here will help you avoid becoming a victim. If you have questions, please call us. Remember, if it sounds too good to be true, it may well be a scam.
How can you protect yourself from gift card scams? Here are a few pointers.
- Buy directly from reputable stores. If you're getting a restaurant gift card, stop by the establishment in person or visit their Web site. That goes for airlines and big box stores, too.
- Avoid gift cards sold by online auction. There's a reason someone's selling the card at a discounted price. It may be stolen or counterfeit. Are you willing to take the risk?
- Examine the card. Before purchasing a gift card, inspect the front and back for tampering. Some cards have PIN codes that must be exposed. Take an extra minute or so, remove the card from its packaging, and make sure the PIN is still hidden.
- Register the card. Some issuers let you register the card at the store's Web site. By registering, you'll be able to check your balance on a regular basis and thereby identify any abuse.
Be careful with gift cards. Don't give your loved ones a lump of coal — or a worthless piece of plastic — this holiday season.
