Gift cards are a really popular and convenient way to give a gift this holiday season to your mates or family, but they can be a goal for scammers who want to steal your money or personal information.
According to the Higher Business Bureau (BBB) 50% more people reported gift card fraud this 12 months compared to last 12 months.
So, what are the sneaky tricks scammers and hackers are using to deceive you? How do you notice their awful tricks and avoid them? Listed below are the five commonest gift card scams aimed toward you this time of 12 months.
1. Display rack gift card trick
One in all the newest gift card tricks involves tampering with the gift cards on the display racks at retail stores. Scammers will record the activation code on the card or place a custom bar code sticker over the actual bar code, which allows them to secretly load the money onto their very own card immediately after you buy the gift card. Which means if you or your recipient try to use the gift card, it’s going to be empty or invalid.
How to avoid this scam
Check the packaging of the gift card before buying it. Search for signs of tampering, reminiscent of the wrapping being torn or resealed, or stickers placed over the bar code or card number. Also, select a card from the back of the rack, as scammers often place their fraudulent cards on the front of the display.
2. Impersonation gift card trick
One other common gift card trick scammers use involves impersonating someone you realize or trust, reminiscent of a member of the family, a romantic interest, an organization or the federal government. Scammers will contact you by phone, text, email or social media and create a fake story or emergency that requires you to send them money urgently.
![Gift cards are very popular during a holiday season, but it's important to protect your finances and avoid scams.](https://nypost.com/wp-content/uploads/sites/2/2023/12/holiday-gift-card-fraud-protection-02-1.jpg?w=1024)
They may ask you to buy a gift card or multiple gift cards after which send them a photograph of the card or the numbers on the back of the card. Once they’ve the gift card information, they may disappear along with your money and cut off contact.
How to avoid this scam
Never send money or gift cards to anyone you don’t know personally or haven’t met in person. If someone claims to be someone you realize or trust, confirm their identity by contacting them directly through a unique channel.
Don’t trust caller ID, as scammers can spoof phone numbers. Don’t be pressured by threats or guarantees, as scammers use emotional manipulation to get you to act quickly and without considering. And remember, no legitimate company or government agency will ever ask you to pay them with a gift card.
3. Resale gift card trick
One other gift card trick involves buying or selling gift cards on online platforms, reminiscent of web sites, apps or social media groups. Scammers will offer to sell you gift cards at a reduced price or buy your unwanted gift cards for money.
Nevertheless, they may either send you a fake or empty gift card or take your gift card information and money without sending you anything in return. They may use stolen bank cards or hacked accounts to buy or sell gift cards, which might put you susceptible to fraud or identity theft.
How to avoid this scam
Only buy or sell gift cards from reputable sources, reminiscent of official retailers, authorized resellers or trusted family and friends. Avoid buying or selling gift cards from strangers online, especially in the event that they offer a deal that sounds too good to be true.
Don’t share your gift card information or personal details with anyone you don’t know or trust. And use a secure payment method that provides protection, reminiscent of a credit card or PayPal, as an alternative of a gift card, wire transfer or money.
4. Phishing gift card trick
A really popular gift card trick this holiday season involves phishing, which is a variety of online fraud that tries to trick you into revealing your personal or financial information. Scammers will send you an email, text or pop-up message that appears prefer it comes from a legitimate company, reminiscent of a retailer, a bank or a (*5*)tech support service.
They may claim that there’s a problem along with your account, your order, your device or your security and that you just need to confirm your identity, update your information or fix a difficulty. They may then ask you to click on a link, open an attachment or call a number after which request that you just pay them with a gift card or provide them along with your gift card information.
How to avoid this scam
Never click on links, open attachments or call numbers from unsolicited messages, as they might lead to fake or malicious web sites or software. Don’t provide any personal or financial information, reminiscent of your passwords, PINs, account numbers or gift card numbers to anyone who contacts you unexpectedly.
Don’t trust messages that create a way of urgency, pressure or fear. They’re designed to make you act without considering. If you could have any doubts in regards to the legitimacy of a message, contact the corporate directly using a verified website, phone number or email address.
Using antivirus protection will help to protect you against scammers and hackers who try to steal your money and private information using gift cards tricks, especially through through phishing.
One of the best ways to protect yourself from clicking on any malicious links, fake web sites and phishing emails and text messages is to have antivirus protection installed and actively running on all of your devices. It’s the easiest way to stop and provide you with a warning of any malware in your system and ultimately protect you from being hacked.
5. Loyalty program gift card trick
This gift card trick involves loyalty programs, that are rewards programs that supply you points, discounts or freebies for being a loyal customer. Scammers will pretend to be representatives of a loyalty program that you just are a member of or that you just are eligible to join.
They may let you know that you could have won a prize, a sweepstakes or a promotion and that you just need to pay a fee, a tax or a shipping cost to claim it. They may then ask you to pay them with a gift card or provide them along with your gift card information.
How to avoid this scam
Be wary of any unsolicited offers or notifications that claim that you could have won something, especially in case you don’t remember entering or signing up for anything. Don’t pay any money or fees to receive a prize, as legitimate loyalty programs won’t ever ask you to try this. Don’t provide any personal or financial information, reminiscent of your passwords, account numbers or gift card numbers to anyone who contacts you unexpectedly.
![Follow these tips to make your holidays more stress free.](https://nypost.com/wp-content/uploads/sites/2/2023/12/holiday-gift-card-fraud-protection-comp-01-1.jpg?w=1024)
Don’t trust messages that create a way of pleasure, curiosity or greed, as they’re designed to make you act impulsively. If you could have any doubts in regards to the legitimacy of a message, contact the loyalty program directly using a verified website, phone number or email address.
How to safely give and receive gift cards
- Buy gift cards online as an alternative or physical cards directly from the shop, not third parties. You may also use these favorite sites and apps that can reward you with a reimbursement on all gift card purchases.
- Avoid gift card racks at retail stores just like the food market. In the event you still want to buy one at the shop, dig back into the pile without taking the primary ones off the rack. Inspect them like a detective before you purchase to make sure that they’re unaltered.
- Register the gift card directly with the retailer if offered, which also helps track card balance.
- Never engage in any gift card transactions from callers making unusual claims. It is probably going a scam.
- Avoid buying gift cards from online auction sites like eBay.
- Never provide personal financial information beyond a way of payment to anyone offering gift cards in-store or online.
- Use antivirus protection. An efficient antivirus software is a must have to protect against scammers and hackers who try to steal your money and private information using gift card tricks, especially through phishing. One of the best ways to protect yourself from clicking on any malicious links, fake web sites and phishing emails and text messages is to have antivirus protection installed and actively running on all of your devices. It’s the most effective to help stop and provide you with a warning of any malware in your system and ultimately protect you from being hacked.
I’ve been scammed! What to do next?
Below are some next steps in case you find you or the one you love is a victim of identity theft in consequence of a gift card trick by scammers or hackers.
1) In the event you can regain control of your accounts, change your passwords and inform the account provider
2) Glance through bank statements and checking account transactions to see where outlier activity began
3) Use an Identity Theft protection service: Identity Theft corporations can monitor personal information like your Social Security Number, phone number and email address and provide you with a warning whether it is being sold on the dark web or getting used to open an account. They also can assist you in freezing your bank and credit card accounts to prevent further unauthorized use by criminals. See my review for Best identity theft protection services 2023 here.
4) Report any breaches to official government agencies just like the Federal Trade Commission (FTC) and the gift card company.
5) Get the skilled advice of a lawyer before speaking to law enforcement, especially if you find yourself coping with criminal identity theft and if being a victim of criminal identity theft leaves you unable to secure employment or housing.
6) Alert all three major credit bureaus and possibly place a fraud alert in your credit report.
7) Run your personal background check or request a replica of 1 if that’s the way you discovered your information has been utilized by a criminal.
In the event you are a victim of identity theft due to a gift card scam, crucial thing to do is to take immediate motion to mitigate the damage and forestall further harm.
Kurt’s key takeaways
Gift card scams are a serious and growing problem that could cause you to lose money, personal information or each. Nevertheless, you possibly can protect yourself and your family members by being aware of the common kinds of gift card scams we outlined and by following the straightforward suggestions to spot them and avoid them.