Introduction
Gift cards have become a popular choice for gifting. They’re convenient, allow recipients to choose what they want, and are widely available. However, these advantages come with significant risks. Gift cards are one of the most frequent targets for fraudsters, and buying them from local retail stores often puts you at greater risk of being scammed. In this article, we’ll explore the common types of gift card fraud, why purchasing them from local retail outlets is particularly risky, and how you can protect yourself or opt for safer alternatives.
Risks of Buying Gift Cards from Local Retail Stores
Tampering and Scamming Tactics
Fraudsters frequently tamper with physical gift cards displayed in stores. A common technique is scratching off the security coating to expose the PIN, then resealing the card and placing it back on the rack. Once an unsuspecting customer buys and activates the card, the scammer quickly drains its balance. Since this fraud relies on exploiting gift cards before the buyer even notices, it’s often difficult to recover stolen funds.
Numerous incidents of online gift card fraud have been well-documented on the internet, resulting in significant financial losses amounting to millions of dollars.
- https://www.cbsnews.com/sanfrancisco/news/campbelll-gift-card-scam-suspects-southern-california-santa-clara-county/
- https://www.cbsnews.com/texas/news/buyer-beware-gift-card-fraud-is-now-a-global-crime/.
- https://ktla.com/news/california/southern-california-police-seize-nearly-10000-stolen-gift-cards-uncover-large-scale-scam/
- https://www.wfla.com/news/national/deputies-find-nearly-7000-gift-cards-during-traffic-stop-that-may-be-tied-to-florida-thefts/
Point-of-Sale Hacking
Some criminals target the retailers’ point-of-sale systems. By installing skimming devices or exploiting software vulnerabilities, they intercept gift card data during the purchase process. Once the card is activated, fraudsters can use the stolen information to deplete the card’s balance.
Retailer Negligence
Retail stores often fail to adequately secure their gift card racks. Cards are left exposed to public handling, making them an easy target for tampering. Even worse, employees may not be trained to spot signs of fraud, such as cards with damaged packaging or altered security features.
Alternatives to Buying Gift Cards from Retail Stores
Buy Directly from Trusted Online Platforms
The safest way to purchase gift cards is directly from the retailer’s official website or a reputable online marketplace like Amazon. These platforms offer better security and often provide digital delivery options, minimizing the risk of tampering or theft.
There are numerous platforms where you can purchase gift cards, whether they are physical or electronic, such as giftcards.com and egifts.com, among others. Additionally, we make sure to keep an updated list of gift card promotions available for our customers [Giftcard Daily Deals].
Use E-Gift Cards
E-gift cards are delivered electronically via email or text, eliminating the risk of physical tampering. They’re easy to send and receive, and you can usually track their delivery to ensure they reach the intended recipient.
Consider Other Gift Options
While gift cards are convenient, they’re not the only option. Alternatives like cash, checks, or personalized gifts can offer the same flexibility without the associated risks.
