BNSF News

Gift-Card Givers, Beware

2007-12-20

Gift-card givers, beware: Purportedly, criminals are going into retail stores and copying down the serial numbers on gift cards that are on display but not yet sold and activated.  The criminals then periodically check the status of the cards by calling the 800 number on the back of them and entering their serial numbers. Once they find the cards are active and have balances, they then use them to make online purchases and drain them. The cards are just like cash. No identification is required to use them. 

However, the reports about how consumers could lose money from gift cards if criminals steal the card numbers from the back of the card are accurate but somewhat misleading, according to the National Retail Federation (NRF).

"The retail industry has implemented sophisticated safeguards to prevent thieves from obtaining, and using, consumers’ gift cards," says Joseph LaRocca, NRF vice president of loss prevention. "Most gift cards are outfitted with scratch-off security codes and protective packaging, in addition to a special verification number distinguishing one gift card from another. Also, retailers have created complex back-end systems to prevent criminals from obtaining proprietary gift card information.

"Instances where consumers lose money from theft of gift card information are extremely rare, but they can happen," adds LaRocca. "Holiday shoppers are encouraged to keep the original receipt from the purchase of gift cards in the unlikely event that they need to return a card to a retail store because it has been used. Retailers can then check gift card purchases to verify that the card was fraudulently used and, in most cases, can refund the gift card value to the customer."  

Other recommendations for keeping your gift cards safe this season are: 

• Make sure to double check the section on the back of the card where the personal identification information is before you purchase it – if it appears to already be scratched off, take it to a customer service representative.
• Only purchase gift cards from reputable sources and not online auction sites where they are likely to be counterfeit or were fraudulently obtained.

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