The gift card scams you need to be aware of with Alice Beer
Christmas may be 'the most wonderful time of the year', but it's also the peak season for festive scammers. As Alice Beer continues her 5 scams of Christmas, she’s revealing the gift card scams you need to be aware of. Gift cards are a popular choice – not just as a present for you to give, but sadly also for scammers who are looking to steal your money.
Gift card impersonation fraud
Official Request for Payment: Typically, the victim receives a call demanding an urgent payment by purchasing iTunes or other gift cards/vouchers from the nearest retailer, which could be a convenience store, supermarket or consumer electronics retailer.
The victim is told that this is to settle an overdue tax bill, hospital bill, utility bill, debt collection fee or bail money.
Following the purchase, the victim is asked to pay the fraudster over the phone by reading out the 16-digit code (in the case of iTunes gift cards) on the back of the card.
The fraudster either sells the codes on, or purchases high-value products, at the expense of the victim.
A Friend in Need: There has also been a rise in scammers impersonating friends or relatives and reaching out through Facebook or Whatsapp asking for help in buying a gift card for a friend. Obviously at Christmas this becomes less of a strange request and thousands of people are being conned every year.
What are gift card competitions?
You’re scrolling through Facebook you might see an advert that looks relatively OK, but as you click through you realise you need to buy a gift card to enter a competition. That’s when you should stop and ask yourself if it’s a scam.
Tesco customers are being targeted by the phishing email scam, which claims to offer shoppers the chance to claim a £500 gift card. However, following the links in the email will take victims to a malicious survey website which asks You to answer questions. The questions will reveal your personal and financial information which can then be used to steal your identity.
There was a big surge of these gift card and voucher scams a few months ago and they seem to be emerging again in time for Christmas - just when we could all do with winning a few hundred pounds off our shop!
What does 'The Draining Scam' involve?
Thieves are entering shops and stealing the value from gift cards.
They leave the shop with the stolen gift card, and scratch away the silver foil obscuring the validation code.
They then copy down the numbers and stick the foil back on - before going back to the shop and then returning the stolen cards back to where they originally found them!
Gift cards are only worth money once someone's brought them from the shop, so the thieves wait until money is uploaded to the card, then spend it.
They take advantage of the fact people don't tend to use gift cards straight away - especially not on Christmas Day.
How can we avoid and protect ourselves?
Before buying a gift card, customers should carefully check for any signs of tampering. If possible, purchase gift cards that are behind a counter where they are monitored.
Check the value of the card immediately online if you receive one as a gift. If it's been emptied, try to take it back to the store and explain the situation.
Many reputable retailers and brands offer online gift cards. If you are purchasing online, Cardly and Prezzee are great reputable brands who have lots of options.