Everyone likes shopping, right? Even more so, when you’re buying gifts, knowing that you’re going to make a loved one happy with your purchase.
However, due to the pandemic, lots of people have prefered not to spend endless time inside different stores looking for the perfect gift. And it makes perfect sense.
That’s why over the past year, gift cards have gotten all the more popular.
It’s too easy. Just go to the store and get a gift card from the rack. Pay, and leave. How simple was that?
But, are really gift cards secure? Or is there a chance that you’ll get ripped off without even realizing it?
Well, according to the Chicago Better Business Bureau,
“The scammers have found [a] new way to extract money from consumers that are really not educated on the pitfalls of buying things with gift cards.”
But, how do scammers do it?
It’s quite simple, really.
“There are some reports of damaged gift cards in the stores, where the scammer has taken the number off, and then, when you purchase it and try to use it, there’s no value on it,” explains Steve Bernas, CEO of the Chicago Better Business Bureau.
Chicago Police Det. William Heneghan of the CPD Financial Crimes unit explained also that scammers go to the stores and photograph the PIN on gift cards and then keep calling the 800 number associated with the card. Once someone has purchased the card and put money on it, they just drain the card.
But, besides this common scam trick, criminals have also found other ways of tricking unsuspicious citizens into giving their money to them.
More specifically, they use social media to contact the victims, and then ask them to buy gift cards so that they can transfer money to them.
Of course, once the victims buy the gift cards and share the PIN with them, they cash out the money and vanish.
This is more or less what happened to a Chicago woman, who bought $3,800 worth of gift cards on e-bay, believing she was doing her English teacher a favor.
The scammers contacted her through her teacher’s Facebook account and asked her to buy the gift cards. Once they had the necessary details, they got the money and disappeared.
“Unfortunately, when you buy gift cards – and the scammer knows this – is once you give him that number, kiss your money goodbye,” Bernas said.
The police have found out there’s a third way of stealing money using gift cards.
More specifically, they recently arrested two women, Tiana Trammell, 26, and Tjwana Rainey, 32, on charges of running a financial crime enterprise.
The women used to meet men at bars, steal their credit cards and buy gift cards. In this way, victims lost $8,000 to $10,000 apiece.
Can you protect yourself from scammers?
First of all, always check that the PIN of a gift card is still covered up. Secondly, make sure you use a credit card instead of your debit card, because it will give you more consumer protection under the law.
Also, only use gift cards to give as a gift and not to pay for anything.
Still, if you get scammed, make sure you report it to local law enforcement.
For more details on this new kind of crime, watch the video below.
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