As we prepare for the holiday shopping season this fall, there is no bigger waste of money than purchasing a gift card that is worth nothing at all.
Unfortunately, buying used or worthless gift cards is more common than you think. Bill Sampson knows this. He has a stack of unused gift cards in his kitchen, including one he recently bought while shopping.
“I took a Home Depot card off the shelf,” he said, “all wrapped in cardboard.”
But when he got home, he said, “I opened the package and voilà, it was an Amazon gift card.”
RELATED STORY | Got a Christmas gift card? Why you should spend it immediately
Someone had swapped the desired $100 Home Depot card for a worthless Amazon card.
“So apparently someone takes these cards off the shelf,” he said, “cuts open the package and puts a blank, not yet activated Amazon card inside.”
The Amazon card had no value. The Home Depot card he had paid $100 for was now in someone else’s hands.
“There was no sign of tampering,” he said. “No sign.”
More and more buyers receive worthless cards
A recent AARP survey found that 73 million Americans have fallen victim to gift card fraud, with nearly a quarter saying they have given or received gift cards with no balance.
Veteran consumer advocate Herb Weisbaum, now editor at Checkbook.org, has a stark warning for consumers.
“I no longer buy tickets in retail stores because I am aware of the risk,” he said.
According to Weisbaum, you can look for signs of tampering, such as extra glue or scratched-off numbers.
RELATED STORY | You can sell gift cards online on these 5 reputable websites
However, he says that in more recent cases, such as the one purchased by Sampson, there may not be any obvious signs as scammers cover their tracks.
“You get one of the real cards out of the rack,” Weisbaum said, “and then you can run algorithms to figure out what other cards might still be in that deck. So you don’t even have to manipulate the cards anymore.”
Weisbaum recommends:
- Purchasing electronic gift cards
- Only the purchase of gift cards that are kept behind the counter and cannot be redeemed when making a purchase in a store
- Use gift cards as soon as possible
Fortunately, Sampson still had his receipt and was able to get a refund.
“If I had put it in my card stash and not used it for a year, the money would have really been gone for me. That would have been my loss,” he added.
Some grocery stores are now taking action
Kroger, the country’s largest grocery chain, said it recently began placing gift cards behind customer service counters in stores with high complaint rates.
“Kroger uses several strategies to reduce fraud in our stores, including but not limited to, training associates on fraud prevention, placing gift card displays near cash registers at the front of the store for maximum visibility, additional signage and digital resources to educate consumers on how to avoid common fraud, and video surveillance. We continue to look for ways to use technology and training to improve fraud prevention,” Kroger spokeswoman Jen Moore said in a statement.
Meanwhile, the Federal Trade Commission reminds shoppers that gift cards are gifts, not payments.
“Never buy a gift card because someone tells you to buy one and give them the numbers,” the FTC stated.
Any caller, even if they claim to be from the IRS, a sheriff’s department, or a company like Microsoft, is trying to scam you when they ask you to purchase gift cards.
So be extra careful during the upcoming holiday season so you don’t waste your money.
______________________
“Don’t Waste Your Money” is a registered trademark of Scripps Media, Inc. (“Scripps”).
Follow John:
For more consumer news and money-saving tips, visit www.dontwasteyourmoney.com
