Beware Gift Card Scams
Gift card scams are on the rise. Here's what you need to know to avoid them
When it comes to overall sneakiness, gift card scams have got to take the cake.
Now that people are becoming more aware of identity theft, it's getting harder for those oh-so-clever high-tech criminals to snatch information from debit and credit cards that they can use to buy free goodies and otherwise line their pockets.
But gift cards, those limited-use credit cards we love to give each other for Christmas and birthdays -- they're still fair game, because most consumers and, worse, the retailers, haven't caught onto their tricks yet.
The Scoop
Unfortunately, most retailers display their gift cards on racks where anyone has access to them. Either the scammer will write down identifying numbers printed on a gift card, or use an electronic skimming device to pull data right off the card's magnetic strip.
Then they'll leave the card on the rack and go their merry way. After that, all they have to do is wait for someone to buy the card, wait till it's activated, and check a website that tells them the card's balance (since they have all the identifying data). Then they spend the remaining balance online.
Another Option
Some scammers are a little more sophisticated. Sometimes activation codes are printed on a sticker attached to the gift card package, so they'll buy one for themselves but swap stickers with another card. When the purchaser or recipient of that card tries to activate it, they activate the scammer's card instead.
Meanwhile, the scammer activates the card the other guy actually bought, and starts spending the balance online.
Pretty slick, yes? The only positive thing for the card owner is that at least gift cards lack the personal information that makes debit and credit cards so profitable for identity theft scammers.
Safety First
Short of not buying gift cards at all, there are a few things you can do to make sure no one scams you. First of all, purchase only those cards kept behind the counter at your chosen store. You can't guarantee that no one has tampered with them, but the likelihood drops sharply.
Some cards cover the activation code with a silvery coating you have to scratch off to get the number: Amazon.com protects its gift cards this way. Consider sticking to such cards, and never try to activate one where someone has scratched off the coating.
Otherwise, check the packaging for signs of tampering. Is it torn or bent? Is the activation sticker loose? If so, don't buy it!
Finally, if you receive a gift card or buy one for yourself, spend the money on it right away, and drain it dry. Gift card scams won't work if there's nothing there to steal.
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