Did you get a gift card under the tree this year?

Did you get a gift card under the tree this year?
                        

In some ways a gift card is the perfect gift because you know the receiver will get exactly what they want. But did a scammer already get their greedy hands on your gift this holiday season? The Better Business Bureau is warning of a gift-card scam that may be gifting holiday shoppers out of their money this year.

The National Retail Federation estimates more than half of Americans bought gift cards this year, and according to the trade group's 2019 survey of holiday shoppers, the average consumer planned to buy three to four gift cards and to put an average of $47 on each of them. That amounts to about $27.5 billion in holiday gift-card sales.

The process of stealing the money off gift cards can vary. The scam is most likely to occur at retail locations where the gift cards are left out on racks unattended. With the simplest method, a hacker takes cards off the rack, writes down the gift cards' numbers and scratches off the strip on the back of the cards to get the security codes. Once he has that information, he puts replacement strips — easily available online — over the codes and exits the store.

Later, after you buy one of those cards and load money onto it, the hacker gets an alert that tells him the funds have been loaded onto the card. The crook has used software that periodically checks the card balance via the internet so the funds disappear soon after being loaded and you are left giving an empty present.

In addition BBB has received a report on BBB Scam Tracker about a site that claims to help you check the balance on your gift card, but in reality the site steals your balance. If you need to check a gift-card balance, go to the site listed on the back of the card itself or, if there is none, go to the website of the company and look for a link to the gift-card page.

Buy online. Buy gift cards online directly from the retailer, chain restaurant or other issuer. Criminals don't have easy access to those cards. Buy online especially if you're purchasing a high-value gift card.

When buying in retail stores, be careful. Don't buy in-store racked cards with easily accessible numbers and PINs. Look for gift cards kept behind the counter or in well-sealed packaging.

Examine the gift card before purchasing. Inspect the package for tampering. Make sure the PIN is not exposed. Grab your gift card from the back of the rack. Scammers are more likely to put the ones they tampered with near the front, where they are more likely to be purchased.

Register your gift card. If you can, register your gift card. If possible, change the security code as soon as you buy the card. Registering your gift card makes it easier to keep track of any misuse occurring, that way you can report it sooner and potentially end up saving the money that is stored.

For more about scams, go to www.BBB.org/ScamTips. To report a scam and help others, go to www.BBB.org/ScamTracker.

Visit www.bbb.org/canton or call 330-454-9401 to look up a business, file a complaint, write a customer review, read tips, follow us on social media and more.


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