Prepaid gift cards are a common choice for holiday gifts due to their convenience and flexibility, but they can also be used to scam customers.
To safeguard your finances and personal information this holiday season, it’s essential to understand how these scams operate, and use the fraud prevention advice from the Wisconsin Department of Agriculture, Trade, and Consumer Protection.
When purchasing gift cards, you might find them offered in large quantities or at reduced prices online.
Be wary of these offers, as some customers have found the cards to be expired or devoid of funds after purchase, while others never received the cards at all.
It is safer to always purchase gift cards directly from the retailer or from a verified seller.
It is important to avoid buying gift cards from unknown individuals.
Also, online advertisements, emails, and text messages may offer gift cards as rewards for participating in sweepstakes or completing surveys.
These offers are typically fraudulent, and the scammer could potentially sell any private information given without providing the promised card.
Avoid giving out your personal details in return for a gift card.
Even if you receive a legitimate card, you have no control over the use of your data afterwards.
If buying a gift card from a physical store, inspect it for signs of tampering.
Scammers have been known to scan cards in stores, record the data, and then remotely empty the funds after a genuine customer buys and activates the card.
If possible, opt for a gift card in a fully sealed package to prevent it from being swiped by a card reader or having the pin number scratched off.
Several companies are implementing measures to combat gift card scams and fraud.
It’s important to report a gift card scam to the gift card company regardless of when it happened.
