Warning about gift card scams: what you need to know
MIAMI — Whether you're giving or receiving a gift card this holiday season, check to make sure you're not falling for a scam.
"Scam reports are up 50 percent for 2023/2022 and we're not even done with the year yet," said Melanie McGovern with the Better Business Bureau
The BBB said they've seen an increase in reports where scammers are tampering with gift cards and stealing the barcodes.
Miami Police are sounding the alarm on social media. "We want to let everyone know about the latest scam that we have gotten word of," Miami Police Captain Freddie Cruz posted.
He has been all over social media warning shoppers about the latest gift card scam.
"These criminals, with their crafty ways, they go inside a store, steal these gift cards, they go home, professionally open these envelopes, take the gift card out, essentially cut out the part that has value, they seal it back up professionally go back to the store and put it on the rack," Cruz explained.
When an unsuspecting shopper buys the card, it activates and scammers cash in. Cruz has a tip on how to avoid getting duped.
"Ask the manager if you can open it before purchasing just to make sure the card is complete. If it is not complete, now that store is the victim — not you — and you didn't lose any money," he said.
They're also targeting online shoppers and asking them to pay with a gift card that's not from the retailer.
"That's a huge red flag. There's a lot of scams that are perpetrated where the scammer is asking for a gift card such as like a grandparent scam or utility scam," said McGovern.
So what can you do?
Before you buy a gift card, here's what to look out for to avoid becoming scammed.
First, check for stickers covering the barcode by running your finger over the back of the physical card. The stickers may contain a phony bar code and when it gets scanned at checkout, you'll unwittingly be sending that cash to the scammer's account.
Also, be careful of websites that check your card's balance. The BBB says some sites could use your card's ID number and PIN and drain money from it.
"When you buy a gift card and you give that number and that PIN to somebody, that money is gone. So it's really important to know who you're giving it to and what they're gonna use it for," said McGovern.
Finally, check for ripped or wrinkled packaging. The BBB said thieves often remove gift cards from the display rack and record the numbers linked to that card, including the activation pin. When you pay for the card, they can steal those funds.
A bonus tip from the BBB, pass on too-good-to-be-true gift card deals. Avoid websites or social media ads that promote gift cards for popular retailers at big discounts because scammers could steal your payment card info. Instead, shop directly from the merchant.
