Holidays

Warning to holiday shoppers: Beware of store-bought gift cards

Santa Clara County DA says gift cards off the rack are prime targets for scammers and provides tips on how consumers can protect themselves from tampered cards

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Authorities once again are warning holiday shoppers to beware of store-bought gift cards, as they are prime targets for scammers.

In a news release Oct. 16, the Santa Clara County District Attorney’s Office warned shoppers to think twice about buying gift cards off store shelves, saying organized criminals steal the cards, tamper with them and put the doctored cards back on the rack.

After someone buys a tampered gift card and loads it with funds, the criminals are able to then deplete the funds, authorities say. A short video public service announcement with additional details was provided by the Santa Clara County DA's Office.

Americans spend about $230 billion on gift card purchases each year, according to the DA.

"Please be cautious about buying gift cards from stands or shelves at stores," District Attorney Jeff Rosen said in the release. "You could inadvertently be giving a thief a gift this holiday season."

Here are ways consumers can protect themselves if they intend to buy gift cards:

  • Buy online gift cards from the official retailer website. Remember to purchase from reliable and trustworthy online sources.
  • If you purchase a gift card off the rack, don’t pick up ones that are unsecured. Look for gift cards secured behind a counter or where a store employee must hand it to you.
  • Look out for signs of tampering like excess glue, loose packaging, skewed tamper stickers, any ripples or bubbles, or if the cardboard appears like it has been opened. Even one suspicious tampered card should raise red flags.
  • Include the gift receipt for your gift card recipient.
  • If you receive a gift card, check the balance. If there is an option to change the PIN, do so.
  • If there are no funds on a gift card, report it immediately to the person who gifted it to you, report it to the store, and report to law enforcement. Be sure to keep the packaging.
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