Why You Should Avoid Buying A Gift Card From The Display Rack At The Store

Gift cards are popular gifts that many of us buy at the last minute.But ready-made gift cards are also a common tool utilized by scammers.

In 2021, the Federal Trade Commission reported that gift cards were the most common payment method used by fraudsters, costing consumers $148 million.

Here’s how brick-and-mortar gift card scams typically work: Kathy Stokes, director of anti-fraud programs at the American Association of Retired Persons (AARP), explains that scammers target gift card displays, especially when the displays are out of sight of the cashier or pharmacy counter.AARP is an interest group that seeks to educate seniors on how to protect their assets from scams and fraud.

They then tamper with the packaging, tear off any film, record the gift card and PIN, and then cover up their tampering.Some scammers even use fake barcodes as stickers to hide the real barcodes on the gift cards.

Then, They set up a computer program with an algorithm that tracks these cards.When any of the cards were manipulated in this way, the criminals were locked in, and then they were able to steal money from the cards.

In other words, when you make a purchase and deposit money using a stolen card, the fraudster can spend or transfer those funds before you or your gift recipient can use them.

Why do scammers love gift cards?Because gift cards can be cashed in quickly and are not as protected as other payment methods.Banks are required to help you get your money back from unauthorized transactions on debit and credit cards, but gift cards are different because they are not regulated by the Electronic Funds Transfer Act.They don’t have those protections.

If the funds on your gift card are misappropriated, there is no guarantee that you will be able to get the money back from the retailer, as many frustrated consumers who have purchased gift cards with invalid balances can attest.

It depends on the goodwill of the retailer.Without a gift card receipt, it’s harder to prove that you’re a victim of fraud because the retailer might say, “Well, how do we know you didn’t just spend it somewhere and then tear up the receipt?”

This is why you should avoid placing the first physical gift card on your display.

Experts say if you can avoid buying the first gift card you see in front of a store display.

Even better, try choosing a gift card that’s guarded by a cashier.If the gift card is behind the cashier, it’s more likely that you’ll get a card that hasn’t been tampered with.

Experts say that buying gift cards online from reputable retailers can also help avoid tampering.However, this doesn’t guarantee that you won’t be subject to fraud if the database for online gift cards is breached.

Or you can send money the traditional way.”Take the cash, put it in an envelope, and hand it over.Or just buy them gifts.

More tips on avoiding gift card scams and getting your lost money back.

Personally check gift cards for tampering.Make sure there are no wrinkles or tears on the gift card and double check that the code is not exposed.

Confirm your balance and keep your gift card receipt.To check the gift card activation receipt to see if the number on the gift card matches the number on the receipt.

Don’t lose your receipt.Always keep your receipt, it will show the balance of your purchase and if you try to use it and find that the balance is zero, you should immediately return to the place of purchase and show them the receipt.

Use it immediately.We often leave gift cards lying around, which creates more opportunities for gift card scams.

If money sits in the bottom of your wallet or in a drawer for months, criminals have more time to manipulate and steal your money.

Register for gift cards.Some retailers allow you to register a gift card and track the funds on the card.

If someone says they need you to pay via gift card, be careful.About a quarter of consumers said they lost money by giving out the number on the back of a gift card, another common type of gift card scam.

These scammers often pressure people over the phone to buy gift cards and share numbers to pay for bogus obligations, such as unexpected bills or taxes.If they can get you excited or scared or get you emotional, they can make you believe almost anything.

As stated by the Federal Trade Commission (FTC), “Gift cards are intended to be used to give a gift, not to make a payment.If someone convinces you to give them the number on a gift card or send them a photo, keep the gift card and receipt and report it to the card issuer immediately.”

If you believe you have been a victim of fraud, call the retailer immediately.Once you realize what has happened, contact the retailer and inform them of the misuse of your card in an attempt to get the funds back.