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Apr 26, 2023

New gift card scam twist

by: Zach Myers Posted: May 16, 2023 / 06:02 PM EDT Updated: May 16,

by: Zach Myers

Posted: May 16, 2023 / 06:02 PM EDT

Updated: May 16, 2023 / 06:02 PM EDT

INDIANAPOLIS — A leading cybercrime organization is warning about a new twist on gift card scams that can set you up as a victim before you even leave the store with your new gift card.

According to Cybercrime Support Network (CSN), criminals are now tampering with gift cards while they are still on the rack at the store where you buy gift cards. They look for gift cards that are on display far from the checkout counter, so they are out of view. Then, they tamper with the packaging so they can record the card number and pin before fixing the packaging to cover their tracks.

Once they obtain the card number and pin, they put the card back on the rack and leave. Then they wait for you, or whoever buys the card, to activate it. Savvy scammers use a computer program to alert them when the card is activated. That's when they quickly go online and drain the funds before you get a chance to use it.

When you go to use the card, it has already been drained dry.

A scam like this can go unnoticed for a long time because people often activate cards and let them sit around for weeks or even months before using them.

To avoid a scam, you should be selective about where you buy your gift cards. Don't grab the one right in front of the rack. Instead ask for one that's behind the counter, or right next to the cashier. You should also look for any possible tampering on the packaging of the gift card. You can also stick to buying digital gift cards that a scammer will never physically come in contact with.

It's also recommended that you don't let your card sit around after activating it. It is safest to wait until you are ready to use the gift card before activating it. You could even call or go online to activate your card while you are approaching the checkout of the store where you’re planning to use the card.

CSN and the Federal Trade Commission also have good information about how to recognize, report, and recover from a gift card scam.

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