Holidays are the best season for con artists as they can perform scams more easily. During Holidays, people purchase more and more, attracting more con artists and con artists hoping to prey on your good intentions.
Gift cards are a common item in the world of frauds, from purported charities seeking “donations” to balances that are empty even though you haven’t used them yet. They are utilized in many typical scams and, as they lack the same level of security as a bank account or credit card, they frequently leave users in the dark when it comes time to try to recoup their losses.
Sometimes, even the most tech-savvy and street-savvy among us might quickly become victims of these schemes. This season, several state authorities, the Federal Trade Commission, and the Department of Justice have already released alerts on some of the most prevalent red signs to be aware of. So, this holiday season, avoid giving your savings to con artists. Rather, remain vigilant and remember these pointers.
Know about the term Card Draining
A well-known fraud known as ‘card draining’ leaves gift card buyers with no money on their cards even after they have already paid for them. For this kind of scam, several regional and federal law enforcement organizations have released alerts! These bodies state that they observed a rise in victims over the Christmas season.
Gift card draining occurs when fraudsters can obtain actual copies of the cards in retail establishments, as previously reported by USA TODAY. They use a scanner to record and scan the number of unpaid cards to tamper with gift cards. They use the stolen number to redeem the loaded funds when the card is bought and activated. Some choose cards that come in envelopes so you cannot see they have been scratched until it is too late, while others have equipment that allows them to replace the silver strip that is scratched off to redeem a card.
Moreover, con artists might take gift cards off the shelves and transport them elsewhere, substituting them with other fictitious goods. They replace the now-tampered-with cards on the shelves for customers to buy and fill with cash after getting information from them. The buyer or recipient of the card is left with an empty balance once the cards are depleted.
The Pennsylvania Attorney General’s Office offers the following advice on how to avoid falling for this scam:
- Verify that the gift card is sealed and that the tape covering the pin and protective cover is still in place.
- Make sure there are no signs of tampering with the gift card.
- If it turns out that the gift card you are buying has been hacked, save the store receipt.
- If a purchased gift card turns out to be compromised, notify it right away to the gift card provider so they can obtain a refund and a freeze on the card.
Making use of Gift Cards as Currency
Classics are always in style. Scammers frequently ask for gift cards to be used as payment for a variety of items when they contact or text you. The thief typically instructs you on which cards (iTunes, Amazon, etc.) to purchase and how much to pay for them, after which they want you to scratch off the code and email them the numbers so they may use the card.
You never really receive anything in return for these ‘payments’ via gift cards, as many customers regrettably discover. In actuality, whatever they claim you’re using the amount on your gift card to pay for is being utilized to enrich a dishonest individual.
The FTC states that the general rule of thumb is this: it is a scam if someone contacts you, no matter who they claim to be, and requests payment by purchasing a gift card and exchanging phone numbers.
If you have previously given someone a gift card number, use your gift card and the gift card store receipt for the following actions:
- Notify the gift card company of the scam as soon as possible. No matter when the scam occurred, it should still be reported. Make use of the list below on How To Contact Gift Card Companies.
- Request a refund of your purchase. Some businesses may refund your money and assist in putting an end to gift card scams. It is worthwhile to inquire.
- Use ReportFraud.ftc.gov to contact the FTC. Every report has an impact.
What is meant by the term ‘Romance Scammers’?
Romance scams are well-known scams. Most of the victims of these kinds of scams are older people or the less tech-savvy. Scammers strike up a relationship with the victim. They convince the victim that they are romantically involved with someone overseas or otherwise in a situation that makes them unable to meet up in person.
Scammers can profit greatly from it even though it can be a longer-lasting fraud since they can obtain multiple payments from the same victim by communicating with them on the internet regularly. They encourage the victim to send money via a gift card using the same technique, frequently claiming to be in distress, in need of assistance, or saving money to see the victim.
The main line, according to the FTC, is to never provide presents or money to a love interest you haven’t seen in person.
If you think a romantic fraud is underway:
Cut off contact with the person right away. Speak with a trustworthy person. Do your relatives or friends express concern about your new romantic partner?
Look up the person’s occupation online together with the term “scammer.” Have similar accounts been posted by others? Look up terms like “oil rig scammer” or “US Army scammer,” for instance.
Use the person’s profile photo to perform a reverse image search. Is it connected to any other name or inconsistent details? Such indicators point to a hoax.
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Pretending to be a Government, Corporation, Charity, or Individual
Someone pressing you to do a task within a set time frame is a surefire indicator of fraud. Impersonation scammers frequently create a scenario in which a victim feels under pressure to respond quickly and has little time to consider their actions. This creates a sensation of pressure.
Scammers acting as members of the IRS, Social Security Office, police, or other official government agencies are a few frequent instances. They inform the caller that they are going to lose their benefits or that they owe a significant sum of money, and they instruct them to make amends by transferring money via pre-paid gift cards.
Scammers frequently pose as charities and companies, tricking victims into believing they are making a charitable donation or that they are paying a bill from their internet or cable provider.
With today’s technology, you can even imitate someone you know. A phony caller ID and a voice manufactured to sound and appear like a loved one urgently alerting you to their need for assistance are two common scam techniques. Many people, thinking their family member is in danger, buy and mail the codes of certain gift cards without a second thought in a panic.
The FTC suggests that you approach persons you get in contact with by phone, email, or message with a healthy dose of suspicion. By their advice:
Never provide personal, account, or payment details to strangers who contact you without warning or demand them. Put down the phone. It’s a fraud.
Never rely on caller ID. Caller ID can be forged by scammers to display a business’s name or number. Additionally, never return a call from a number that appears on a recorded message or in an unexpected text or email.
Do not use a gift card to make any purchases. Cards for gifts are what they are for. It’s a scam if someone suggests using a gift card to make payments or purchasing gift cards for purposes other than receiving gifts. Your money will be lost, and it won’t be recouped.
Winning a Contest that you didn’t enter or getting a Random Reward
Most certainly, a few of these have ended up in your spam folder. You don’t recall ever purchasing a Walmart or Amazon gift card, but all of a sudden you have one to use. It doesn’t originate from a person you know, and it’s frequently promoted as the winner of a raffle or competition that you also can’t recall participating in.
You may have even “won” something larger, like a car or trip. It is frequently suggested that you “redeem” your prize by clicking on a link and spending a “redemption or claiming fee.” Naturally, there is no real prize associated with these “fees” and they may only be paid with gift cards.
The FTC states that the easiest rule to remember is to ask yourself if you have recently participated in any lotteries or sweepstakes. You haven’t won anything if not. Other precautions against prize scams include:
To win a prize, do not pay. Genuine awards are given away for free. To receive your prize, anyone who requests payment for “taxes,” “shipping and handling charges,” or “processing fees” is a scammer. Put an end to it and move on.
Don’t divulge any financial details. Giving your credit card number or bank account information is never necessary to redeem a prize. It’s a scam if anyone asks for it.
Don’t divulge any private information. Scammers anticipate that you will click on links to steal your data or infect your device with malware. Don’t reply and delete the message without clicking the links.
Reselling used Gift Cards
Found someone on the internet offering inexpensive used gift cards? See a child or someone else outside a business encouraging people to buy used gift cards for a “deal” or acting like a charity collector? Join a “savings club” to receive a purported money-off discount on your gift card purchase.
Although purchasing gift cards at a reduced cost looks like a terrific method to cut costs on Christmas gifts, the proverb “If it sounds too good to be true, it probably is” holds.
It is impossible to confirm or ensure that a used gift card will contain the stated amount. They might not even be real at all, be empty, have a lesser balance than advertised, or have been used already. Sometimes, what appears to be a “one-time discount” instead entails a sneaky recurring membership enrollment that charges your card automatically, soon outpacing the amount you “saved” on monthly costs in the first place.
Never purchase a used gift card from someone, even if they appear to be a Girl Scout. A gift card can only be purchased safely through an official channel, the corporate store, a website, or another reliable vendor.
Let’s Conclude!
Thus, gift cards are a common item in the world of fraud. So, be aware. I hope this article will help you a lot! Never purchase a used gift card. Never trust a stranger.
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