Greg's Corner

Arrest shows how gift card scam works

By Greg Collier

Gift cards are used in so many scams, they should be called red flag cards. Typically, scammers will try to get their victims to pay them in gift cards for something that normally isn’t paid for in that way. Gift cards cannot be used to pay your utility bill, a legal fine, or as a rental deposit. As soon as someone gets asked by a stranger to pay for something with gift cards, they should know that’s a surefire sign of a scam. However, there is another scam that anyone can fall victim to, and it targets the gift cards themselves.

Recently, in a suburb of Columbus, Ohio, a man was arrested for allegedly stealing gift cards from a CVS store. After police apprehended the man, they searched his car and found 30 lb. boxes filled with gift cards. Police also found heat guns, blow dryers, adhesive strips, and other tools used to alter the cards.

After scammers steal the gift cards, they remove the security strip from the card and record the card’s number. The security strips are replaced with the adhesive strips before the scammers place the cards back on the rack at the store. Once a customer puts money on the gift card, the scammers are notified, and they drain the card of all funds. Customers usually don’t find out until someone goes to use the gift card, which could be weeks or months after the date of purchase. When the card is emptied, it’s very rare for a customer to get their money back.

There are steps you can take to protect yourself from this gift card scam. When buying gift cards, take one from the middle of the pack, as they are less likely to have been tapered with. Check the card for signs of alteration. If the security strip appears wrinkled or crooked, there’s a good chance it’s been tampered with. When buying a gift card, keep the receipt, as this could assist you later if the card has been emptied.

If you do get stuck with a tampered card, call the issuing company immediately at the customer service number on the back of the card. While this isn’t a guarantee your funds will be recovered, it will go a long way in expediting that process.