Tis the season to give gifts. For those of you with little time or imagination, it’s time to get those gift cards. We recently reported on an IRS scam where the fraudsters ask for gift cards as payment, commonly in the form of iTunes gift cards. Now scammers have moved on to gift cards scams knowing full well those shopping for one may be looking to get it over with fast. To avoid your giftee’s disappointment, watch out for these 5 gift card scams.
1. Online Gift Card Scams
You can literally be online and selling within a matter of minutes and for a few dollars. A website setup to scam you out of gift cards only has to look legitimate while offering too good to believe deals. These sites make it crazy easy to browse for cards, add them to your cart, and enter your payment information. But you’ll never get your card. Or you may get a gift card with phony codes, PINs, etc. Worse yet, some sites can sell gift cards that are legitimate but are worth less than advertised, if not worth absolutely $0.
How to Avoid: Many legitimate sites sell gift cards online. Find out how many years the site has been up. Research the guarantee. Read customer reviews.
2. 3 Way Call Scam
A person posts a gift card for sale online. They say they don’t need it and are willing to let it go at a discount. You make an offer. They ask for a 3 way call so you can all confirm the card’s value. You will then be asked to enter the numbers on the gift card to verify it. The seller steals this info, making your gift card worthless. This scam works because buyers want to verify the amount on a card before buying it.
How to Avoid: Many gift cards have a number and PIN. Use hesitation when purchasing a gift card if your seller knows both.
3. The Old Switch-a-roo
A classic gift card scam. Shoplifters will enter a store to switch a legitimate gift card with a bogus one when no is looking. The unlucky person to choose that particular card is left on the hook. It is worth noticing which stores keep their gift cards in a hidden place, as they are more likely to be hit.
How to Avoid: Make sure gift cards have a PIN that is hidden. Don’t choose your gift card from the top or bottom of the pile.
4. BOT Thief
This is one of those gift card scams that are almost impossible to stop because nothing you do has put your gift card in jeopardy. It works when hackers get into the site of the card you purchased to steal the numbers. They then use the card at their leisure. There is no way for you to stop this gift card scam. However, you can reduce your risk by doing the following:
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- Stay away from vendors who are constantly in the news for being hacked.
- Use your gift card as soon as possible.
- Shop for your gift card as late as possible if it is a gift.
- Ask your vendor what their policy is should your gift card be hacked.
- Sell your old gift cards you don’t plan to use at a place like Raise Gift Cards.
5. Double Sale
As noted above, you may sell your unwanted gift cards for cash. So do scammers. They will sell only the numbers of the gift card to the company, not the card itself. They do this over and over to several vendors. The gift card looks legitimate when checked. It is purchased multiple times. Only the first buyer to use it will actually get what they paid for.
Only buy gift cards from resellers that provide you with a guarantee.
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