November 28th 2024.
As the festive season draws near, the threat of gift card scams looms over the UK, following a surge in such scams in the US during Christmas 2023. Gift cards, being a popular present, make for easy targets for scammers, who managed to steal a staggering £13.5 million last year in the UK alone.
The scammers employ various tactics, including posing as HMRC and preying on people's fear of unpaid taxes, as well as pretending to be friends or family in need through new WhatsApp numbers. However, one would assume that purchasing gift cards from reputable supermarkets would be safe from such fraud. Unfortunately, that is not always the case.
Scammers have found a way to steal gift cards from stores, by tampering with the packaging and copying down the validation code, before returning them to the shelves. Unsuspecting customers then purchase these gift cards, only to find out that the money has already been drained by the scammers. This is particularly problematic during the holiday season, as people tend to buy and load gift cards for family and friends as gifts, giving the scammers ample time to drain the balance before it is even used.
The appeal of gift cards for scammers lies in their untraceability, as well as their popularity and sometimes high value. In one case, a woman lost £150 after purchasing Amazon gift cards from her local Sainsbury's store, only to find out that the money had already been spent when her niece tried to use them in January. Sainsbury's has since taken measures to prevent such fraud, and they are working with the Gift Card and Voucher Association to further improve security measures.
There are different types of gift card scams, including impersonation, fake competitions, and draining. To protect themselves, customers are advised to thoroughly inspect gift cards for any signs of tampering before purchasing them. It is also important to check the value of a gift card as soon as it is received as a gift, and immediately return it to the store if the money has already been drained. Buying from reputable retailers and brands, such as Asda, Cardly, and Prezzee, can also help minimize the risk of falling victim to gift card scams.
In conclusion, while gift cards may seem like a convenient and popular gift option, it is important for customers to be vigilant and take necessary precautions to avoid falling prey to gift card draining scams. By being aware and careful, we can make sure that our holiday gift-giving remains safe and enjoyable for all.
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