Rise in Gift Card Scams as Victims Lose Millions
Shoppers are being warned to stay vigilant as gift card scams surge, costing victims millions. With better bank protection leading criminals to adopt new tactics, gift cards have become a prime target for fraudsters. Here’s what you need to know:
Increasing Incidence of Gift Card Scams
– Rise in Reports: Report Fraud, the national fraud reporting body, indicates that reported cases of gift card fraud have surged by about 25% over the last two years.
– Staggering Losses: Recent statistics show 9,386 reports of gift card fraud in 2023-24, resulting in more than £18.5 million lost by victims.
– Targeting Vulnerable Consumers: Fraudsters are employing various methods to exploit consumers, from draining funds from cards to tricking people into purchasing them under false pretenses.
Personal Accounts of Victims
Emma Johnson, a 48-year-old from Nottinghamshire, shared her distress after falling victim to a gift card draining scam alongside her family. They collectively spent £120 on gift cards for a birthday present, only to discover the money had already been drained by criminals.
She expressed her frustration:
> It’s upsetting that you’ve gone out and bought a present for someone, and they haven’t actually got anything. It’s left me with a lack of confidence in buying gift cards in-store. I don’t want this happening to anyone else.
Emma believes the cards were tampered with while inside the store, urging buyers to always verify that the card number matches the one on their receipt.
Safeguards and Recommendations
– Retailer Responses: A spokesperson from Tesco emphasized their commitment to preventing gift card tampering through advanced technical measures. They recommend that customers thoroughly inspect gift cards before purchase and reach out to customer service if fraud is suspected.
– Advice from Experts: Amanda Wolf, head of Report Fraud, stated that the increase in reported scams is likely even more significant than recorded numbers suggest, due to under-reporting. She highlighted the importance of purchasing from reputable sources and taking precautions when buying in-person.
– Key Tips:
– Always inspect gift cards for signs of tampering.
– Look for visible security features to confirm authenticity.
– Use two-factor authentication when shopping online.
– Consider checking out as a guest to protect personal details.
Ongoing Challenges and Future Strategies
Louise Baxter, head of the National Trading Standards Scams Team, believes many victims may not recognize gift card fraud as a scam, largely due to its relatively new emergence. She noted:
> Criminals are diversifying and trying to find new methods of stealing our money. Gift cards are difficult to trace.
To combat this growing issue, she advocates for more training for retail staff and awareness campaigns to educate consumers on potential scams.
The Home Office has pledged to pursue justice against perpetrators and will announce a comprehensive fraud strategy next year. They emphasize that no legitimate organization will request payment via gift cards.
Consumer Confidence in Gift Cards
Hannah Shimko, managing director of the Gift Card and Voucher Association, noted that while the vast majority of gift cards remain safe for consumers, ongoing issues must be addressed. Retailers invest significantly in security protocols and shared intelligence to protect customers.
As gift cards continue to be a favored choice, especially during the festive season, it is essential for shoppers to remain alert and informed. Protect yourself and trust your instincts—if something seems off, it’s better to forgo the purchase.
For more updates and advice on gift card scams, stay informed through reliable sources and practice cautious shopping habits.