With gift cards, beware of scammers
With high school and college graduations upon us, you might be considering giving a debit gift card to the graduate.
But consider Sandra Weddle’s story a cautionary tale.
Weddle, of Visalia, California, bought four $100 Visa gift cards for her children as Christmas presents. But when her son tried using one at a Visalia sporting goods store, it was denied — there was only $1.08 on it.
The other cards barely had any money too. Weddle did some research and found that she was a victim of a stolen card number scam that happens a lot around holidays. What made matters worse was her struggle to find help to get her money back.
“I never thought I would be in this position,” Weddle said. “I bought (the cards) not knowing that they had already been used.”
Debit gift cards are quick and convenient not only for consumers but scammers as well. They use a variety of ways to steal money off gift cards without buyers knowing, said Kayleena Speakman, spokeswoman for the Better Business Bureau serving Central California and the Inland Empire counties in Southern California.
In this case, scammers take a card off the rack, record the card number and the PIN, then put the card back, usually in the front of the display, Speakman said. They go home and register that number online. When someone buys that card, the scammer gets an alert that says the card is active and immediately spends it, she said.
Weddle bought the cards in November from the wall of gift cards at a Walmart. She gave two to her son in Visalia and the others to her daughter in San Diego. She paid $419.76, including the $4.94 purchase fee for each.
But when her children tried to use their gift cards, they found that only a few dollars remained. Two purchases on Amazon had been made on one gift card, and a $95 electric bill in Rosemead, east of Los Angeles, was paid using another card, Weddle said. She does not know what the other cards were used for, but neither had any money left on them.
Walmart told Weddle the store couldn’t reimburse her because the cards were not Walmart gift cards. Her call to the company that issued the card, Greendot, got no response, so she mailed them a letter and the cards. The company sent her a new gift card and told her to check the balance online. It was $1.08, Weddle said.
She sent the card back with another letter. The company responded with a check for $3.35.
“I’m going, ‘you’ve got to be kidding me,’ “Weddle said. “I returned the check to them.”
When Weddle called The Bee about her story, she learned that if she had paid by credit card, the company might help her get reimbursed. And that’s what happened, she said.
“They said we will credit your account and take care of Visa,” Weddle said.
Visa directed questions to Greendot, which did not respond for comment.
Weddle said her first purchase of debit gift cards was also her last one. She has some advice for buyers. “If they don’t keep (the cards) under lock and key where people can’t get to them, then they’re not protected. I didn’t know people could do that, use a card without having them in their hand.”
Here are some tips from the Better Business Bureau on what you can do:
If possible, don’t take a card from a rack. Get a card near the register. If you have to grab one off the rack, take it from the back. Examine the gift card. If you notice it’s open or scratched or does not look right, put it back or give it to the cashier. Don’t use your bank-issued debit card or cash to buy gift cards. Usea credit card because if there is an issue, the credit card company may be able to help.
Keep your receipt. You can then show when you bought the card, loaded it with money or activated it. Some stores may be able to help you, some may not. Register your card immediately. This way, so you can track the balance. Report any suspicious activity to the store you bought the cards from. File a complaint with the Better Business Bureau and the Federal Trade Commission.