ARVADA, Colo. — Suzanne Gdovic was trying to be generous by picking up a $200 Target gift card for a friend’s daughter who just had a baby.
When her friend’s daughter went to spend the money, she found the card wiped of its value and registered to someone else.
The scam, known as a physical gift card scam, is more prevalent this time of year, when people are shopping for gifts, according to Mark Fetterhoff with the AARP’s Fraud Watch.
How the gift card scam works
Gdovic, who considers herself a smart shopper, photocopied both the gift card and the receipt before she gave the card as a gift.
“She went shopping and much to her dismay, when she went to check out with $200 worth of merchandise, the card was not eligible,” Gdovic said. “What kept coming up was this gift card is registered to somebody else. And it has a zero balance on it.”
Armed with her photocopies, Gdovic said she went back to Target to ask for help. When she told a manager what happened, the manager explained this issue sometimes happens with gift cards.
“They expertly put that coating, that protective, you know, privacy coating back on,” Gdovic said the manager told her. “And it's on the shelf for somebody like me or any other customer to pick it up.”
Then the scammer waits for someone to buy the card.
“They might scratch off the back and take the number off the back. They might scan the barcode, and essentially what they're doing is waiting for someone to purchase it,” Fetterhoff said. “What they're doing is waiting for someone to purchase it. And then once someone's purchasing it, they're then trying to liquidate it right away.”
How to avoid this gift card scam
“So many people this time of year are purchasing gift cards from those huge racks,” Fetterhoff said.
He said AARP surveys found about one in four people who reported some kind of gift card fraud have experienced this kind of issue, whether they were on the buying end or receiving end.
He suggests you give the card a good once-over before you purchase it from the rack to ensure the packaging of the card obscures any numbers and the hidden PIN.
“Thoroughly inspect the gift card. Make sure it has been tampered with in any way. You might see a rip or tear or something scratched off the back,” he said. “If you have seen a gift card that has been tampered with, you know, let someone at the store know right away, so they can go and inspect the gift cards, as well.”
The best way to avoid a physical gift card scam is to buy gift cards online from a trusted retailer, he said.
Gdovic said she’ll now think twice about buying any gift card from the store if the packaging exposes the scratch-off coating to the PIN number. She said the manager at the Target store said the retailer is working to replace all gift cards with better packaging.
What to do if your gift card was scammed
Fetterhoff said if you believe you’ve been victim to this scam, you should call the numbers on the back of the gift card to reach the store's fraud department.
Gdovic did that and provided documentation of her issue. Target told her they would work out the issue.
“We are aware of the prevalence of gift card scams and take them very seriously,” a Target spokesperson told 9NEWS in a statement. “Guests who believe they have been victims of fraud should contact our guest relations team at 1-800-440-0680.”
Have a tip or question for Steve On Your Side? Email Consumer Investigator Steve Staeger at SteveOnYourSide@9NEWS.com.
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