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  • Geebo 9:00 am on December 12, 2024 Permalink | Reply
    Tags: , gift cards, ,   

    Gift Cards: A Trojan Horse for Human Trafficking 

    By Greg Collier

    The holiday season, a time of joy and giving, is being marred by a sinister global threat: human trafficking. This insidious crime, often hidden in plain sight, is exploiting vulnerable individuals on a massive scale.

    One particularly insidious manifestation of this global crisis is the widespread tampering of gift cards. Organized crime syndicates, often with ties to international criminal networks, are infiltrating retail stores worldwide to replace legitimate gift cards with tampered versions. These tampered cards, once activated, drain funds to the criminals’ accounts, leaving unsuspecting consumers with worthless plastic.

    This deceptive practice is just one facet of the vast and complex network of human trafficking. Victims are lured with false promises of better opportunities, only to find themselves trapped in forced labor, sexual exploitation, or other forms of modern-day slavery. The scale of this global crisis is staggering, with millions of people victimized each year.

    To safeguard themselves from this growing threat, experts recommend the following precautions. Before purchasing a gift card, examine it closely for any signs of tampering, such as tears, cuts, or misaligned packaging. If possible, check the balance of the card immediately after purchase to ensure it hasn’t been compromised.

    Digital gift cards, which can be sent directly to the recipient’s email, are less susceptible to physical tampering. Finally, if you notice any suspicious activity in a store, such as individuals hoarding gift cards or acting strangely, report it to store management or local law enforcement.

    By inspecting gift cards for signs of tampering, reporting suspicious activity, and supporting organizations working to eradicate human trafficking, we can play a crucial role in disrupting these criminal networks and protecting vulnerable populations.

     

  • Geebo 9:00 am on November 6, 2024 Permalink | Reply
    Tags: gift cards, , , , Judy May,   

    Google Cleared of Liability in Gift Card Scams 

    Google Cleared of Liability in Gift Card Scams

    By Greg Collier

    A recent ruling underscores the complex legal landscape surrounding tech giants, gift cards, and consumer fraud. In a case reported by Ars Technica, a federal judge granted Google’s motion to dismiss a proposed class-action suit brought by Judy May, a consumer who fell victim to a prevalent form of fraud involving Google Play gift cards. Despite losing $1,000 to scammers in 2021, May’s claims were largely dismissed as the court found Google had no duty to refund her.

    The details of the case highlight how scammers manipulate consumers, often using gift cards as a primary ‘currency’. Victims like May are typically tricked into purchasing these cards with promises of a prize or urgent financial need. In May’s case, scammers convinced her to purchase Google Play gift cards as an upfront cost to unlock a government grant. Upon realizing she’d been defrauded, May reached out to Google, only to be informed that refunds were not possible under Google’s terms of service, terms that she felt were ‘unconscionable’.

    May’s complaint argued that Google is aware of the use of its gift cards in scams, pointing to data showing Google Play gift cards comprised a significant portion of reported scams from 2018 to 2021, with the Federal Trade Commission noting losses of over $17 million. She suggested that Google could take steps to warn customers, such as placing warnings on gift cards, but no such warning was provided.

    In court, Google contended that it did not encourage or induce May to make the purchase; rather, the scammers did. The judge agreed, ruling that Google bore no liability since the economic harm May experienced stemmed directly from the scammers, not from any action by Google itself. May argued that Google indirectly profits from these scams by taking a 15 to 30 percent commission on gift card purchases within the Play Store, but this claim did not sway the court.

    The judge noted that May had not used the gift cards “in their designed way” and that Google had no obligation to issue a refund, as May’s funds weren’t considered “stolen” when she made the purchase.

    May also claimed that Google’s technology could potentially track and prevent transactions associated with scams. However, the court found that May failed to show any duty on Google’s part to investigate or prevent such activity, particularly in her case.

    For victims like May, the ruling is a reminder of the limitations in pursuing refunds for gift card scams through legal channels. In cases where these cards are used fraudulently, it’s not uncommon for large companies to point to refund policies similar to those upheld by major retailers. Google, in this case, referenced policies from Target and Walmart, which also do not issue refunds in similar situations.

    Often, gift card scam victims are left without recourse when companies decline to reimburse fraudulent transactions. While this case reinforces Google’s lack of liability, it also spotlights the vulnerability of consumers to scams exploiting loopholes in refund policies.

    Consumers should be aware that gift cards are intended for personal use within the brand’s ecosystem, not as a payment method for debts, fines, or grants. Until systemic changes are made, consumers must stay vigilant, as tech companies may not be required to intervene or compensate for losses in these situations.

     

  • Geebo 8:00 am on September 24, 2024 Permalink | Reply
    Tags: , , , gift cards, , ,   

    Car Wrap Scam: A Costly Tempting Offer 

    Car Wrap Scam: A Costly Tempting Offer

    By Greg Collier

    A deceptive scam has been quietly circulating for years, continuing to claim unsuspecting victims. It begins with what seems like a straightforward offer, get paid for letting a company advertise on your car while you drive around. The idea of easy money might be appealing, but this so-called opportunity is actually a financial trap that could leave you thousands of dollars in debt.

    The scam typically starts with an ad online, offering to turn your vehicle into a rolling billboard. The pitch is simple: allow a company to wrap your car with their brand, and you’ll be paid weekly for just driving around as you normally would. The promise of several hundred dollars per week for a few months can seem irresistible.

    Once you respond to the offer, you receive a check for a few thousand dollars, with instructions to deposit it and wire part of the money to an installer who will wrap your vehicle. This is where the real scam begins. The check is fake, but by the time your bank realizes this, you’ve already wired the scammer the money, leaving you on the hook for the full amount. Sometimes, they even ask for payment in gift cards, a hallmark of scam operations because of the difficulty in tracing them.

    It’s easy to see how this scam claims victims. The checks are often convincing, and the idea of making quick, easy money can be appealing. However, like many scams, it preys on trust and the desire for financial gain, leaving victims not only out of pocket but potentially dealing with bounced check fees and other financial fallout.

    Avoid becoming a victim by steering clear of similar unsolicited offers, and always be cautious when asked to deposit a check and send money or gift cards in return.

    Remember, no legitimate business will ever ask you to pay for services like vehicle wrapping in advance or request payment through gift cards. If an offer seems too good to be true, it probably is. Stay informed, and always verify opportunities before parting with your money.

     

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

    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 8:00 am on April 1, 2024 Permalink | Reply
    Tags: , , gift cards, , , ,   

    The jury duty/arrest warrant scam never takes a holiday 

    By Greg Collier

    Over the Easter weekend, there really wasn’t any groundbreaking news about scams. However, we did observe a notable surge in reports about what we regard as one of the most prevalent scams, the jury duty or arrest warrant scam.

    The arrest warrant/jury duty scam is a type of phone scam where the scammer impersonates law enforcement officials or representatives from the court system.

    In this scam, the scammer typically calls the victim and informs them that there is a warrant out for their arrest due to failure to appear for jury duty or for some other alleged offense. The scammer then demands immediate payment of fines or fees to avoid arrest. They often pressure the victim to provide personal information or payment details over the phone.

    This scam is prevalent because the threat of arrest can cause individuals to panic and comply with the scammer’s demands without questioning the legitimacy of the call. As we often remark, hardly a day passes without some police department, regardless of its size, cautioning residents about this scam.

    For instance, in a recent incident in Evansville, Indiana, a victim fell prey to police impersonators, resulting in a loss of nearly $20,000. The impersonators falsely claimed to represent the local county sheriff’s office and informed the victim of an alleged open federal case against her. Following the typical pattern of this scam, the victim was coerced into believing she could evade arrest by paying a bond. The scammers directed her to a Bitcoin ATM to make the payment. After the initial payment, they deceitfully asserted that it hadn’t gone through and persuaded the victim to repeat the payment process.

    In Augusta, Georgia, there have been reports of scammers impersonating The U.S. Marshals Service. It’s a common tactic for scammers to pose as national law enforcement agencies such as the Marshals, the FBI, the DEA, or Customs and Border Protection. The idea behind impersonating federal officers is to increase the pressure on victims. In the Augusta case, the scammers are threatening victims with arrest for allegedly failing to appear in court for jury duty. In this instance, the fraudsters are demanding payment in the form of gift cards.

    In Atlantis, Florida, local police have issued warnings about scammers who are calling victims and pretending to be from an unidentified “human trafficking task force.” These scammers are going as far as spoofing the phone numbers of the local police department to appear more legitimate. Once again, victims are being threatened with arrest if they fail to make a payment. It’s likely that the scammers are posing as a human trafficking task force to instill fear in the victims, making them believe they could be labeled as predators if they don’t comply. The reports did not specify what type of untraceable payment method the scammers requested.

    Our main point is that these scams are not limited by location and can manifest in various forms. However, avoiding falling victim to them is straightforward if you remember one crucial fact. Legitimate law enforcement agencies or police departments will never request money over the phone, especially not through methods like gift cards or cryptocurrency. Moreover, it’s improbable for the police to issue warnings about warrants via phone calls when someone is wanted for arrest.

    If someone is approached by police impersonators over the phone, simply hang up the phone. You are not obligated to engage with them or provide any information. Then report the scam to your local law enforcement agency or the appropriate authorities. By reporting the incident, you can help prevent others from falling victim to the same scam.

     

  • Geebo 8:00 am on March 27, 2024 Permalink | Reply
    Tags: gift cards, , , Spectrum Internet,   

    Utility scammers are targeting consumers 

    By Greg Collier

    Recently, the Better Business Bureau (BBB) issued a warning to Michigan consumers about a utility scam targeting customers of Spectrum Internet.

    According to reports, scammers are impersonating Spectrum Internet representatives, enticing customers with the promise of discounted internet services. The scheme involves leaving voicemails offering substantial discounts on future internet bills. However, the catch is customers are required to pay several months’ worth of service fees upfront, and the payment must be made using gift cards, asserting it as a component of a purported partnership.

    In a distressing incident, a Michigan resident fell victim to this scam. After receiving a voicemail offering a 50% discount on her internet service, she contacted the number provided and was told she could enjoy the discount for three years without any contracts. However, she was instructed to pay for 15 months of service in advance, amounting to $420, via gift cards.

    Spectrum, aware of the scam, has issued guidelines on its website to help customers identify such fraudulent activities. The company emphasizes that it will never request payments via gift cards, wire transfers, or payment apps, nor will it offer discounted rates for a fee.

    To avoid falling victim to utility impersonation scams like this, avoid prepaid debit or gift card payments. Legitimate companies typically accept checks or credit cards as primary payment methods. Be cautious of requests for payment via prepaid cards, as these are favored by scammers due to the difficulty in retrieving funds once they’re transferred.

    If you receive a special offer or discount, verify its authenticity by contacting the utility company directly. Obtain the customer service number from the official website or your latest bill and inquire about the offer’s validity. Remember, if a deal seems too good to be true, it likely is.

    Although reports of this scam are currently surfacing in Michigan, there’s a significant likelihood that it may soon target areas beyond.

     

  • Geebo 9:00 am on March 8, 2024 Permalink | Reply
    Tags: , , gift cards, , , ,   

    A warning about the mystery shopper scam 

    By Greg Collier

    In the world of scams and fraudulent schemes, there are some that lurk in the shadows, waiting for unsuspecting victims to fall into their traps. One such scam that continues to circulate, albeit not as commonly known as others, is the mystery shopper scam.

    A mystery shopper, also known as a secret shopper, is someone who is hired by a company to pose as a regular customer and evaluate the quality of service, products, or overall experience provided by a business. Mystery shoppers typically visit retail stores, restaurants, hotels, banks, or other service-based establishments and then provide detailed feedback on various aspects such as customer service, cleanliness, product knowledge, adherence to company policies, and overall satisfaction. While the role of a mystery shopper is a legitimate position within many retail establishments, it unfortunately serves as a guise for scammers to target unsuspecting victims.

    The scenario typically begins innocuously enough. An individual receives an email offering them an opportunity to become a mystery shopper. Intrigued by the prospect of earning some extra income while performing simple tasks, the recipient responds to the email and awaits further instructions.

    In one instance, a potential victim received two letters in the mail, each seemingly from reputable companies. One was purportedly from Walmart and the other from American Express. Enclosed within these letters were checks, one for almost $3,500 and the other for $2,900, respectively.

    This is where the mystery shopper scam quickly reveals itself. The recipient is instructed to deposit the checks into their personal bank account, a seemingly harmless step in the process. However, the plot thickens as they are then directed to immediately withdraw a portion of the deposited funds and use it to purchase money orders or gift cards.

    For instance, in the case of the Walmart letter, the recipient is instructed to purchase three $1,000 money orders, while the American Express letter directs them to buy $2,500 worth of gift cards. The final twist comes when the victim is asked to relay the serial numbers on the back of the gift cards or money orders to their supposed supervisors.

    This is where the trap snaps shut. Unbeknownst to the victim, the checks they deposited into their bank account are counterfeit, and the funds they withdrew and sent away are irretrievable. The victim is left facing the consequences, liable for the full amount of the fraudulent checks.

    No legitimate employer will ever request you to deposit funds into your personal account that are intended for business purposes. If such a request is made, it’s a strong indicator of a fraudulent check. Additionally, anything involving gift cards should raise suspicion. Unless the cards are intended as a gift, refrain from sharing their numbers over the phone or with anyone else.

    To protect yourself from falling victim to the mystery shopper scam, it’s crucial to remain vigilant and skeptical of unsolicited offers, especially those promising large sums of money for minimal effort.

     

  • Geebo 9:00 am on January 8, 2024 Permalink | Reply
    Tags: , gift cards, ,   

    Apple settles lawsuit over gift card scams 

    Apple settles lawsuit over gift card scams

    By Greg Collier

    There’s a phrase we often use when discussing gift card scams, and that is gift cards are the currency of scammers. What we mean by that is, unless you’re presenting someone with a gift card as an actual gift, if someone asks you for payment in gift cards, you’re more than likely being scammed. However, it’s not just scammers who make money from gift card scams. The issuers of these cards make money as well.

    Apple Computers were one of the pioneers in modern gift card sales. The company introduced its first gift card, the iTunes Gift Card, in 2003. Initially, it was designed for users to purchase and download music, movies, TV shows, and other digital content from the iTunes Store.

    Over the years, as Apple expanded its product and service offerings, the gift cards evolved to cover a broader range of Apple services and products. The iTunes Gift Card was eventually rebranded as the Apple Gift Card to reflect its versatility across various Apple platforms.

    Apple gift cards can be used to purchase not only music and movies but also apps, games, books, iCloud storage, and even hardware products like iPhones, iPads, Macs, and accessories.

    Since Apple hardware can be purchased, the gift cards have become highly coveted among scammers. They’ll purchase the high-end items before selling them for a substantial profit.

    According to a recent lawsuit, Apple is also allegedly making money from these scams. When an Apple gift card is purchased, Apple keeps 30% of that purchase price. Like many gift card issuers, Apple has been reluctant to assist victims who have lost money to Apple gift card scams.

    That lawsuit was recently settled, although a settlement amount has yet to be disclosed. However, the settlement affects anyone who lost money to an Apple gift card scam from 2015 to July 31, 2020, and did not receive a refund from Apple.

    Unless you’re actually giving someone a gift, gift cards should never be used as a form of payment to people you don’t know. No legitimate company, agency, or online seller, will ever ask for gift cards as payment. Another reason we call them the currency of the scammer is they’re virtually untraceable once the card is depleted.

     

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

    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 cards, ,   

    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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