Are gift cards on your holiday shopping list? Beware, there’s a new scam where the balance on cards you buy may disappear before it can be used.
Are gift cards on your holiday shopping list? Beware, there’s a new scam where the balance on cards you buy may disappear before it can be used.
It’s called gift card draining. According to a news release from the office of D.C. Attorney General Brian Schwalb, scammers take an unpurchased gift card off the rack, scratch off the back of the card to reveal the code and then cover it up again.
Once the card is bought and activated, the scammer accesses the card online and steals the money on the card.
“This holiday season, District residents should watch out for sophisticated gift card ‘draining’ scams that prey on shoppers who like to give gift cards as holiday presents,” Schwalb said in the news release.
How can you protect yourself? Schwalb’s office said there are a few ways.
First, check the gift card carefully. If anything looks out of place or there is any damage to the card, don’t buy it.
It is recommended to buy gift cards that are locked away at stores instead of out on the rack.
Schwalb’s office also suggests using a credit card to buy the gift card. If you are ripped off, your credit card company may be able to help you get your money back.
D.C’s Department of Insurance, Securities and Banking Commissioner Karima Woods said if you are a victim, you should report it to her office and the attorney general’s office.
“Gift cards may seem like a safe and simple solution to gift giving, but scammers are finding new ways to drain their value before they’re even used,” Woods said in the news release.
The D.C. Department of Insurance, Securities and Banking’s phone number is 202-727-8000. The OAG’s Office’s Consumer Protection number is 202-442-9828, or you can file a complaint online here.
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