Lawsuit slams Walmart over faulty gift cards

Woman claims retailer is ignoring the problem.

A Springfield, Missouri, woman did not notice anything odd about the $25 Walmart gift cards she purchased in December for her niece and nephew.

It wasn’t until after Christmas when the woman’s niece tried to redeem the card that it became clear something was wrong.

According to a class-action lawsuit filed Monday in federal court, the Springfield woman had fallen victim to a common scam.

Here’s how the lawsuit describes the scheme: criminals remove security tape from the back of the gift cards, then photograph the PIN number and replace the tape with a similar-looking product.

After the cards have been purchased but before they have been given out as gifts, the criminals will activate the cards and make purchases on Walmart.com.

The plaintiff in Monday’s class-action lawsuit, Debbie McCoy, claims someone used up all the money on her niece’s card before her niece even got to the store, and Walmart associates refused a refund.

The lawsuit claims this gift card scheme is “rampant and widespread,” and Walmart is not doing enough to prevent it.

There are a couple of clues that can tip off consumers to something nefarious, like if the security tape on the card is crooked or it’s evident a larger piece of tape had once been in that spot.

Consumer Reports recommends not buying gift cards off the rack.

McCoy’s attorney Craig Heidemann said Visa and other companies have started selling gift cards in secure packaging to avoid this scam, but Walmart has not. “It’s a shame Walmart hasn’t done the same thing,” he said.

The lawsuit accuses Walmart of negligence and breach of contract. McCoy is asking for a refund in addition to punitive damages, claiming she suffered “embarrassment and distress.”

Messages left Wednesday with an attorney for Walmart and the company’s media relations department were not immediately returned.