Avoid Gift Card Scams This Holiday Season
The holiday season is quickly approaching which means our inboxes and mailboxes are filled with holiday deals and coupons. According to the National Retail Federation, 42% of consumers plan to start holiday shopping before November. While some shoppers love getting a head start on gift giving, others wait until the last minute and turn to gift cards as a quick and easy solution. Although they make a convenient gift, they can be easy to steal. Scammers love gift cards because there are plenty of ways to steal funds. They use tactics like exposed PINs, fake activation stickers, and gift card exchange sites to steal gift card funds. In this blog, we’ll provide some tips on how you can avoid gift card scams this holiday season.
Key Features:
- Checking gift card PINs
- Checking the activation sticker
- Avoid payments over the phone
- Protect your gift card
- How you can sell/exchange your gift card
Check Gift Card PINs
Check The Activation Sticker
Make sure to check the activation sticker on the back of the card before you purchase it. Scammers sometimes place their own sticker over the original activation label, which links to a fraudulent website instead of the retailer’s official system. When you try to activate the card, it routes your information through their site, giving them access to the card number and PIN. Once they have this information, they can drain the card before you even know there’s a problem. If the activation sticker looks tampered with or doesn’t match the rest of the card’s design, it’s a clear red flag. Always buy gift cards directly from trusted retailers or online platforms to minimize the risk of falling victim to this type of scam.
Don’t Make Payments Over The Phone
Protect Your Gift Card Purchase
Don’t Like The Gift Card You Received?
Sometimes, you end up with gift cards that may not suit your tastes. One way to sell or exchange these cards is through an exchange website. Be sure the exchange or reselling site you use will guarantee money back if you’re scammed. Some exchange sites will allow people to send the gift card code and get paid before the site receives the physical card in the mail. Once the balance is confirmed, scammers will spend the gift card balance before the buyer receives the card or code. Raise.com is one site that has a money-back guarantee.
Make sure to read and share these tips with friends and family ahead of Black Friday & Cyber Monday! Happy shopping!
Want to get ahead on saving money for next year’s holiday shopping? Consider opening a Holiday Savings Account at Launch CU. For more holiday money-saving tips, check out our blog 7 Easy Ways To Save On Holiday Shopping.
FAQs
Can a gift card be traced after it’s stolen or used?
In most cases, it’s difficult to trace or recover stolen gift card funds. However, if you keep your purchase receipt and card details, some retailers can help track when and where the balance was used.
What should I do if I think I’ve been scammed?
Contact the retailer immediately to report the fraud and provide your receipt, card number, and any transaction details. You can also report gift card scams to the Federal Trade Commission (FTC)
Why do scammers ask for payment in gift cards?
Gift cards are nearly untraceable and allow scammers to get cash quickly. Once you share a card number and PIN, the funds can be used or transferred instantly with little chance of recovery.
Can I get my money back if a gift card balance is stolen?
Refunds aren’t guaranteed, but some retailers may replace the card if you have proof of purchase and act quickly. That’s why it’s so important to save receipts and register your card if the option is available.
