Gift Card Fraud
Crime is everywhere and all around us. Not all crime is requires the use of stun guns or pepper spray to thwart a potential assault or robbery. Some crimes are perpetrated by white collar or blue collar people who take advantage of others when they least expect it.
Even though the holidays season comes once a year, gift card sales are an ongoing business for many retailers. Because of this, there is something you should know about gift card scams. These scams can siphon the value right out of your card before you get to use it.
First of all and perhaps the rarest of these is called the Card Not Present (CNP) scam. Unscrupulous gift card number thieves record the number of cards up for sale. Then they regularly check to see if the cards bearing those same numbers have been activated with an existing balance on the card. Upon the card's activation, gift card number thieves use them to make online purchases. This allows the crooked user to drain the cash value before their intended recipients have a chance to use them.
This method does not work on all gift cards. They work on the ones allowing “card not present” situations such as internet transactions. Some gift cards have special scratch-off coverings similar to those used on instant-win lottery tickets. Once they are rubbed off, they can not be put back.
If an unsuspecting customer buys one of these cards, the fact that it had been tampered with and its personal identification number (PIN) coating removed might go unnoticed until its recipient tries to use it. Most people do not understand the importance of the PIN, so a scratched off PIN coating might not alert them to any fraud. If you do give gift cards as gifts, only buy cards stored in secure locations that make tampering difficult. Be aware that store clerks have been known to engage in this practice. Buying gift cards stored under lock and key may reduce your chances of being ripped off but it will not guarantee that this scam will not happen.vanilla gift card balance
Whenever you find a gift card from a store display or have a clerk hand it to you, always take the time to scrutinize both sides of the card before paying for it. If the PIN covering has been scratched off or you see other signs of tampering, get another card. Let the store manager know why. If the card can not be used for online purchases, there is no need to worry about the card as much because the thief would need the actual card to use it.