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  • Geebo 8:00 am on July 18, 2024 Permalink | Reply
    Tags: gift card draining, ,   

    State warns of gift card scam 

    State warns of gift card scam

    By Greg Collier

    Police in New Hampshire are raising the alarm about a sophisticated gift card scam that’s preying on consumers nationwide. This crime is executed with remarkable efficiency, making it difficult for victims to detect until it’s too late.

    The scam begins in retail stores, where suspects remove hundreds of gift cards from shelves. These cards are then mailed to other conspirators, who meticulously open them to access the information inside. Once this information is documented, the cards are sent back to other conspirators who discreetly return them to store shelves, making them appear untouched.

    This sets a trap for unsuspecting shoppers. As soon as funds are added to these gift cards, the scammers, who monitor the cards closely, immediately spend the money. This leaves the consumer with a worthless gift card and an unpleasant surprise.

    During an investigation, police detectives discovered over $100,000 worth of Apple products in a New Hampshire, apartment. These items are believed to have been purchased using information from the stolen gift cards. Gift cared scammers then sell the products, making themselves a substantial profit.

    This scam is not limited to New Hampshire. It is part of a larger, nationwide problem. New Hampshire’s tax-free status makes it an especially attractive target for scammers.

    To protect yourself from gift card scams, always inspect the back of the card for signs of tampering. It’s a good idea to take a handful of cards from the rack and compare their markings. Scammers often place tampered cards at the front, so consider choosing one from the middle of the pack instead. When purchasing gift cards, use a credit card whenever possible, as it offers better protection against loss compared to cash or a debit card. If you find that a card you received has been emptied, try contacting the customer service number on the back of the card. While recovering the money or getting a refund may be difficult, it’s worth seeking assistance from customer service.

     

  • Geebo 9:00 am on December 13, 2023 Permalink | Reply
    Tags: , gift card draining, ,   

    How common is gift card draining? 

    By Greg Collier

    Recently, we made a post about how scammers can drain the value of a gift card as soon as you buy one. The scam has been dubbed “gift card draining” by law enforcement. While it may seem like a new scam due to the news coverage it’s been garnering lately, it’s been around since stores started selling gift cards on racks and kiosks. We don’t like to repeat subjects too often on this blog, but gift card draining has been so prevalent in the news, we thought we’d take another look at it.

    In the gift card draining scam, scammers may tamper with physical gift cards available for purchase in stores. They may discreetly scratch off or expose the card’s activation code without alerting the store staff. Once the scammer obtains the activation code, they redeem the value on the card once it’s activated by an unsuspecting shopper. This makes it useless for the person who eventually purchases it.

    If you’re wondering how widespread this scam is, you may want to take precautions while doing your holiday shopping this year. In Northern California, police were patrolling a Target store when they noticed a man allegedly taking gift cards from their racks and doing something to the cards before putting them back. When police officers approached the man outside the store, they discovered the man had thousands of gift cards inside his car. The cards were taken from 54 Target stores in 12 different California counties. The cards were stolen at stores from Los Angeles to the San Francisco Bay Area.

    To protect yourself from potential gift card scams, consider implementing the following precautions. When purchasing gift cards, choose those from the middle of the pack, as they are less likely to have been tampered with. Conduct a thorough inspection of the card for any signs of alteration, especially if the security strip appears wrinkled or crooked, as these may indicate tampering. Keep the receipt when acquiring a gift card, as it can be valuable for assistance if the card is later found to be empty.

    In the unfortunate event that you detect a tampered card, promptly contact the issuing company using the customer service number provided on the back of the card. Although there’s no guarantee of recovering your funds, taking this step can significantly expedite the resolution process.

     

  • Geebo 9:00 am on December 6, 2023 Permalink | Reply
    Tags: , gift card draining, , ,   

    Police warn of gift card draining scam 

    Police warn of gift card draining scam

    By Greg Collier

    Gift cards are a great idea when shopping during the holiday season. If you have someone on your Christmas list who is difficult to shop for or lives far away, a gift card can be the ideal present. However, it should be known that gift cards are also prone to fraud. The fraud doesn’t come from the companies who issue the cards, nor does it come from the stores who carry them. Instead, it comes from scammers who are looking to make a quick buck at the shoppers’ expense.

    While most scams are perpetrated online these days, this gift card scam requires the scammer to have physical access to the card. This requires the scammers to shoplift the gift cards. After leaving the store, the scammers engage in a scheme where they extract the security strip from the card and capture its number. Subsequently, they affix adhesive strips to replace the security strips before strategically returning the cards to the store rack. Upon a customer loading money onto the compromised gift card, the scammers receive notifications and promptly deplete the card of its funds. Typically, customers remain oblivious to the fraud until an attempt to use the gift card is made, often weeks or even months after the initial purchase. Recovering the funds is exceedingly uncommon once the card has been emptied.

    Police in the Philadelphia suburbs recently issued a warning about this scam, as they have recently received reports of hundreds of prepaid debit cards and Apple gift cards being tampered with at a local supermarket chain.

    To safeguard yourself from falling victim to this gift card scam, consider taking the following precautions. When purchasing gift cards, opt for one from the middle of the pack, as they are less likely to have been tampered with. Thoroughly inspect the card for any signs of alteration, particularly if the security strip appears wrinkled or crooked, as these may indicate tampering. Retain the receipt when acquiring a gift card, as it can prove valuable in assisting you later if the card is found to be emptied.

    In the unfortunate event that you discover a tampered card, promptly contact the issuing company using the customer service number provided on the back of the card. While there is no guarantee of recovering your funds, taking this step can significantly expedite the resolution process.

     

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