WASHINGTON, D.C. — As the holiday shopping season ramps up, consumer groups want you to be aware of possible scams especially those involving gift cards.
“We know scammers love gift cards, because it is very hard to recoup your money once it’s gone,” said Melanie McGovern, director of public relations for Better Business Bureau.
A new report from the Better Business Bureau (BBB) tracks a 50 percent increase in gift card scams this year alone. Researchers say there were 3,918 reported incidents over the last three years.
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“If somebody is asking you for a gift card as a form of payment that isn’t the retailer issuing the gift card, it is most likely a scam,” said McGovern.
The report shows online shoppers were hit the hardest. McGovern said scammers posing as online sellers will ask for gift cards instead of traditional payment methods.
In other cases, the crooks are pretending to be representatives from retailers or even the federal government.
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“The scammers are walking people through this like go buy a gift card, give us the number, scratch off the pin and people are so terrified that they’re falling for this,” she said.
Your wallet can also take a big hit from these schemes. According to the Federal Trade Commission, gift card scams led to $147 million dollars in losses as of this past September.
That’s why the BBB wants you to stay vigilant especially if you see more digital ads this holiday season.
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“If it’s an ad for a company you’ve never heard of, if it’s a product that you’ve seen elsewhere for more money, and it’s a little too inexpensive in this ad, that’s something to also be aware of as well,” said McGovern.
The BBB also warns that technology companies like Apple and Google are popular gift card sources for scammers. That’s because scammers can buy pricey items like laptops and resell them later.
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