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Updated: 2:12 p.m. Saturday, Oct. 29, 2011 | Posted: 2:11 p.m. Saturday, Oct. 29, 2011

Buying gift cards? Learn how to protect them from scammers

By John North

Dayton BBB

Gift cards are perfect for anyone hard to shop for. They allow recipients to select what they want at their convenience. A recent National Retail Federation survey reported more than 58 percent of shoppers say they’d like to receive gift cards this holiday season.

Unfortunately, gift cards also are easy targets for scammers. One scam occurs when people copy the numbers on the back of gift cards displayed on retail store racks. They wait several days until the cards are sold and call to get their balances. Once they find cards with remaining balances, they use them to shop online, essentially stealing from the cardholders.

Another scam involves untrustworthy store cashiers who pocket newly-activated cards and give customers blank ones. Scammers also will advertise gift cards on Internet auction sites at discounted prices, but most of them are stolen or phony and hold no value. For instance, buyers purchase $100 gift cards for $50, but receive invalid cards or none at all.

As you purchase gift cards, the Better Business Bureau offers these tips:

• Read the fine print before purchasing to determine if there are any fees.

• Make sure gift cards haven’t been tampered with, removed and placed back into their holders or the backs haven’t been scratched off.

• Have employees scan gift cards to make sure they’re valid and have the proper value once purchased.

• Keep the original receipt with the card as proof of purchase.

• Encourage recipients to use gift cards right away in case of store closings.

• Advise recipients to register gift cards through the stores’ Web sites, if available, which allows them to check balances and get new cards if lost.

• Avoid buying gift cards from online exchanges or auction sites because of the possibility of buying stolen cards.

Gift cards can make shopping for loved ones easier, but they come with their share of risks. Remember to purchase gift cards directly from stores you can trust. Check them out with the BBB by visiting www.bbb.org or calling (937) 222-5825 or (800) 776-5301.

John North is president and CEO of the Better Business Bureau.

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