Gift cards are practical and flexible to give or receive, which is why so many shoppers love them and retailers stock lots of these preferred presents. Unfortunately, this popularity also has a sinister side: gift card fraud. The criminals continuously change their approach in order to prey on the unsuspecting gift card holders like you, and they will end up with a zero-balance and an equal amount of lamenting time. In this article, we will talk about the most common gift card scams, as well as how to keep your gift cards from being used by the wrong people.
What is Gift Card Fraud?
The vulnerability of gift cards extends throughout their entire lifecycle —pre-purchase, post-activation, and even post-gift. Scammers will hack into accounts, modify cards at retail outlets, and set up bogus customer support frauds. Examples of gift card scams include:
In-store gift cards: Scammers remove gift cards from stores, modify them to expose card numbers, and then tamper-proof the merchandise. Once they get the card numbers, they can keep an eye on the cards and use them immediately after activation.
Email Phishing and Fake Customer Support Scams: Scammers send fake emails or put customer service numbers online, luring users into giving away their gift card number and PIN. After they have the information, they can easily deplete the balance.
Online Marketplace Scams: Fraudsters frequently offer gift cards for discounted prices on online marketplaces. A lot of these cards are most likely also purchased using stolen credit cards, or totally fake.
Account Hacking: Scammers gain access to online accounts with gift card balances and spend them before the legitimate account owner knows what happened.
5 Ways to Safeguard Your Gift Cards
These are some steps you can consider and take to safeguard your gift cards and reduce your risk of becoming a fraud victim.
1. Purchase from reputable outlets
One of the best ways to reduce fraud risk is by purchasing your gift cards directly from reputable retailers, either online or at a physical store. Do not buy gift cards from third-party resellers or online marketplaces where unscrupulous sellers happen to be peddling stolen, and sometimes even counterfeit, cards.
2. Be Sure To Inspect Physical Gift Cards
If you purchase a gift card at a store, examine it closely before buying. Examine for indications of being messed with, particularly around the area on which your card number or PIN is imprinted. If the sticker at a card reader is (slightly) loose or has been resealed, this can be an indication that someone already accessed the information on your card. If something seems off, request another card or purchase the cards at other retailers.
3. Sign Up and Start Using Your Card Immediately
Some gift cards have the option of being registered online. If the card is registered, it will be even safer as you can report possible fraudulent activities and, in many cases, lock the card completely. Use your gift card as early as you can, also. The longer a card sits dormant, the better for fraudsters to get in there and clean out the balance.
4. Watch out for Internet Gift Card Scams
Among the scams are plenty of fake customer service numbers alongside phishing sites whenever an individual searches for assistance. Always contact customer service through the legitimate website of the card issuer or retailer when you deal with your gift card. Do not search for customer service numbers using search engines, as this may land you on a scam site.
5. Only Give Info Necessary For Your Gift Card
Because gift cards are usually lacking the same security features as a credit or debit card, they make an easy target. Do not share gift card numbers and PINs over the phone, in text or email. If you believe a customer service rep called and requested your gift card information, hang up and look up the number from the official retailer’s website.
What Should You Do If You Fall Victim to Gift Card Fraud?
If you think your gift card was misused, then respond promptly. You can start by finding the official site or phone number of gift card issuer and directly contact to customer support. It may even be possible for some companies to pause the balance left on the card or issue you a new one if you contact them quickly after your fraud has happened. Also consider reporting fraud to local authorities, or to the Federal Trade Commission (FTC), which maintains a database of fraud incidents and can alert others.
The Future of Gift Card Security
With the innovation of digital payment solutions we are seeing new innovative technologies that have been born to protect consumers from gift card crooks. Firms are spending on better security, including real-time monitoring, card activation controls and stronger data protection. It is possible to pick out gift cards for the person you will give it to, either as a special treat or even while getting one for yourself, this is based upon knowing these technologies inside and out as a means of making certain that they only come from those who really care regarding customer security and thus be pleased with whatever by using some type of assurance that comes in kind of safe soundness whenever presenting or receiving them.
Gift cards are a nice and easy way to say thank you or to celebrate something special. However, they are like any good thing, you have to be on guard for them. Knowing the most common ways fraud happens and following these tips can go a long way toward protecting your gift cards, ensuring financial loss does not occur.
But that doesn’t mean gift card fraud has to steal your holiday spirit. With the right precautions and knowledge however, you can have all the gift card perks without things getting weird.
