Gift Card Scams: Criminals Find Way to Steal Our Money Without Being Noticed

So, are you planning on giving gift cards this holiday season? Well, be careful, because what you end up buying may not be what you think. Gift cards have recently become a favorite target for scammers. So how can you protect yourself from scammers?

Photo: Dennizn | Dreamstime.com

What is gift card draining?

Here's the most common scheme: a fraudster steals a gift card, copies its number and security code, and then carefully seals it in a bag and puts it back. When someone else later buys the card and puts money on it, the fraudster simply withdraws it, knowing the number and code in advance.

Weekend TODAY anchor Laura Jarrett recently fell victim to the scheme. She bought $2000 worth of Vanilla Visa gift cards at a CVS in New York City, only to find that three of the cards had been scuffed where the security code would be, and the money was gone.

"All the stamps looked perfectly normal," Laura said in a TODAY story that aired Dec. 20. "There was a warning on the packaging that if you saw any signs of counterfeiting, don't buy the card. So I checked them before I paid. The packaging of the cards didn't look suspicious."

One card Laura bought looked perfectly fine, but the balance was zero and the money was withdrawn two weeks after she bought it.

On the subject: Fraudsters in California organized hundreds of fictitious marriages for green cards: the service cost from $20 to $000

Laura is not alone. A 2022 survey by the American Association of Retired Persons (AARP) found that nearly one in four people gave or received gift cards that did not have funds on them.

Gift card and reload card fraud cost $228 million last year, according to the Federal Trade Commission.

What to do if you have become a victim of fraud

The Retail Gift Card Association and Vanilla Gift told NBC News that thieves are becoming more sophisticated and creative when it comes to finding ways to empty cards. They advise people to report fraud to the police and call the number on the back of their card if it appears empty.

Drugstore chain CVS is also looking into the issue, warning customers about the possibility of fraud while requiring employees to monitor gift card racks.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New Y

How to protect yourself from scammers

There are several steps you can take to reduce your chances of becoming a victim.

• Some police advise against buying a physical gift card. It is almost impossible to know which cards have already been scammed. A virtual card eliminates this risk.
• If you are purchasing a physical card, purchase it at the cash register or at the counter in the store.
• Gift card recipients should also check balances and use cards quickly to reduce any risk.
• When purchasing a gift card, use a credit card to pay for the purchase. This will increase your chances of getting a refund if needed.

Read also on ForumDaily:

Health Insurance Fraud: How Shell Companies Get Paid for Non-Existent Products and Services

How to remove information about you from the Internet, and why to do it

11 products that are counterfeited most often: how not to get scammed

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.