By: Tom Browning, AlliedBarton Security Services Photography: Lotus Head at www.pixelpusher.co.za Date Posted: 12/10/2007 Printer Friendly Version Email Story to a Friend

It's no surprise that gift cards have become the gift purchase of choice for the holidays. There is nothing to wrap, the size and color are always right and the convenience is unbeatable. The convenience, however, is being undermined by the latest scam to impact consumers. How are today’s thieves using your gift cards while they are still in your possession?

The scam is really quite simple. The thieves steal the cards’ identification numbers and use the numbers to shop online or reprogram a different card to shop in the store once you’ve activated the card. Each gift card has a unique serial number embedded in the magnetic strip, which taps into a centralized computer that tracks outstanding balances and usage. Thieves can easily acquire small, hand-held magnetic strip scanners, slip one of these devices into their pocket and walk into a store that offers these plastic gift cards. The gift card predator can take a handful of cards into the dressing room and scan each card to record their unique ID numbers. When they're done with the cards, they put them

Ten Tip for Safer Shopping Be Sherlock Holmes. Inspect the card you wish to purchase very carefully. If it appears tampered with, move on. Behind the counter trumps point-of-purchase displays. Whenever possible, ask for a card from behind the counter instead of selecting one from a rack available to the public. Check activation labels. Be sure any activation labels or scratch-off areas are intact and in pristine condition. Don’t be social. There’s never a reason to divulge your social security number or other personal information to the cashier. The store does not need this information -- only predators do. Scan, verify and validate. Immediately after your gift card is activated, ask the cashier to scan the card so that you can verify the amount you requested is available. Keep your receipt as proof of purchase and value. Avoid third-party merchants. Buy your gift cards directly from the company issuing it. Never purchase gift cards from online auction sites, since stolen and counterfeit cards run rampant online. Avoid gift card expiration and expectation blues. Ask about -- and read -- the fine print for expiration dates. Be aware of any usage or dormancy fees. Check for purchase exceptions. Can the card be used to purchase anything, or are there specifications? Bricks and mortar beats digital. Is the gift card valid for online purchases, or can it only be used in the bricks and mortar store? Avoid gift card mark-ups. Consider purchase fees and ask if there is a fee to buy the card or activate it. When buying gift cards online, find out if the vendor charges a fee for shipping and handling. Gift cards = cash. Treat gift cards with the same care and respect that you give your check book and cash. For more tips on safe gift card usage, visit the Federal Trade Commission and AlliedBarton.

back on the display.

A holiday headache

Consumers who buy a corrupted card are headed toward an unforeseen holiday headache. The criminal can reprogram a used card’s magnetic strip to match the ID number they previously scanned and merrily shop until your balance goes to zero. In a less high-tech version of this scam, the thieves write down the numbers and then use them to make online purchases.

How does this thieving gremlin know when your card is activated and what the value is? Stores that offer plastic gift cards also allow customers to check their card balance via telephone with the ID number. Every few days, the criminal checks the balance on their stack of card IDs, and when one gets fueled with cash by an unsuspecting consumer, they either start shopping or offer it for sale online.

While you may not be willing to substitute cash or a traditional gift for a gift card, try the tips in our sidebar for a safer shopping experience. Maintain vigilance, common sense and caution to keep the holiday and everyday gremlins at bay.