Gift card fraud rises as victims lose thousands and thousands | EUROtoday

Shoppers are being warned to be vigilant because the variety of scams involving present playing cards rise.

Both Trading Standards and Report Fraud, the nationwide fraud reporting physique, stated higher financial institution safety was pushing criminals to show to present playing cards as a brand new method to get our cash.

According to consultants, fraudsters goal the playing cards on-line and within the store to empty the cash from them, or trick folks into shopping for them to switch cash and not using a hint.

Report Fraud, the nationwide physique for fraud reporting, believes it has elevated by about 25% over the previous two years. New figures from the organisation present they’d 9,386 experiences of present card fraud in 2023/24, with greater than £18.5m misplaced.

Emma Johnson, 48, from Nottinghamshire, stated she, her dad and her brother have been all victims of a present card draining rip-off.

They had all individually purchased present playing cards for her different brother’s birthday from the identical Tesco retailer inside per week of one another, spending £120 in complete.

But when he went to make use of them, it turned out the cash had been spent already.

She stated: “It’s upsetting that you’ve gone out and bought a present for someone and they haven’t actually got anything.

“It’s not left me with confidence to purchase a present card in retailer.

“I don’t want this happening to anyone else.”

She believes the playing cards had been tampered with whereas within the retailer and the cash drained from them as soon as activated.

She urged folks to verify the quantity of their card matched the quantity on their receipt.

A spokesperson for Tesco stated they’ve a “robust set of technical and operational measures” in place to forestall and cope with card tampering.

They suggested clients to test present playing cards fastidiously earlier than they purchase and to talk to the customer support workforce in the event that they assume they’ve been victims of fraud.

Amanda Wolf, head of Report Fraud, stated underneath reporting made it troublesome to know precisely how a lot it was rising by, however stated their intelligence urged circumstances had risen by a few quarter over the previous two years.

“It’s not unusual when there’s an emerging crime type,” she stated.

“But it’s absolutely one we are looking at and we are looking to do a deep dive into over the next 12 months.”

She stated a lot of the experiences are available round January after the festive interval.

The methods individuals are caught out embrace shopping for pretend on-line present playing cards, by accident shopping for a card which has been tampered with or being tricked into shopping for present playing cards for somebody.

She additionally stated criminals use phishing emails providing pretend present playing cards as a prize or a deal.

Ms Wolf stated: “Make sure you’re buying from reputable sellers, if you’re purchasing in person make sure it’s not been tampered with.

“If they appear poorly made, or haven’t got seen security measures, do not use them and take them again.

“Use two-factor authentication (when shopping online) and check out as a guest to protect your details unless it’s a website you recognise and use regularly.

“For that 30 seconds, cease, and assume.”

She also said she would like to see gift cards being better protected in shops, including being put behind the till.

Louise Baxter, head of the National Trading Standards Scams Team, said it was “not a shock” gift card fraud is on the rise, and believes it is likely under reported.

She thinks the rise is down to tighter controls on sending money from bank accounts and people not expecting to be scammed with gift cards as it is a “comparatively new” fraud.

“The criminals are diversifying and looking for new strategies of stealing our cash,” she added.

“Gift playing cards are troublesome to hint, and from the buyer’s perspective, how do you show you did not simply give it to a buddy?

“There’s more that can be done – we need to ensure we diversify as quickly as the criminals do.

“But typically it is like whack-a-mole.”

She said she wanted to see more campaigns to raise awareness, and training for shop staff to check in with people spending lots of money on gift cards.

The Home Office stated it was “dedicated to bringing each perpetrator of this devastating crime to justice”, and will announce a fraud strategy in the new year.

“We’re urging everybody to cease and assume. No real organisation will ever ask you to pay with present playing cards,” a spokesperson added.

Hannah Shimko, managing director of the Gift Card and Voucher Association, said the vast majority of gift cards were bought with no difficulty and “are supported by established shopper protections”.

She added retailers and issuers spend a lot on security, transaction monitoring and staff training, and share intelligence.

She previously told the BBC putting gift cards behind the counter would add “pointless friction” and could lead to a 30% drop in sales, based on industry experience.

She added: “Gift playing cards proceed to be one of the vital well-liked and trusted methods to present, significantly at Christmas, and the trade stays dedicated to defending clients and supporting real use.”