Are retailers responsible for gift card scams?

Are retailers responsible for gift card scams?

By Greg Collier

We can’t hear the term ‘git card’ without almost immediately thinking of scams. They’ve become synonymous with scams, since they’re often used as a form of untraceable payment in a vast number of scams. Gift cards can also be the scam itself.

One common gift card scam is when scammers visit stores to capture the information from the back of gift cards. They patiently wait until someone loads money onto the cards, and then use the funds for their own purposes, leaving the cardholders at a loss.

Another version of that scam is when gift card scammers frequently visit different stores and scratch off the security strip from the card. They then take note of the card number and replace the security strip with a sticker.

What both scams have in common is that the scammers need to go into the stores themselves. Because of this, some believe the retailers that sell the cards are partially responsible for when the funds are stolen from the cards. 21 states have filed a class action lawsuit against the Target retail chain, accusing Target of knowingly selling compromised cards. Does the lawsuit have merit? Possibly.

Retail stores almost always have gift card kiosks out in the open, where potentially anyone could interfere with the cards’ validity. Some advocates have called for the cards to be kept behind counters or in vending machines.

However, until that day comes, there are ways to protect yourself from buying a faulty gift card.

To avoid falling victim to gift card fraud, there are a few precautions you can take. Firstly, always inspect the back of the card to ensure it hasn’t been tampered with. Check a handful of cards from the rack to make sure they are similarly marked on the back, as scammers often place tampered cards up front to get the money quicker. When purchasing a card, consider buying one from the middle of the pack instead.

It’s also advisable to pay for gift cards with a credit card whenever possible. Credit cards offer better protection against loss than cash or debit cards.

If you do happen to receive an empty card, you can try contacting the customer service number on the back of the card. However, be aware that it is unlikely they can recover the lost funds or offer a refund.