Beware Gift Card Ripoffs This Holiday Season
Posted December 1, 2008 12:00 pm.
This article is more than 5 years old.
They are amongst the easiest Christmas gifts to give and to get, avoiding a lot of shopping hassles and choices and leaving the final decision up to the recipient. Gift cards have become one of the biggest sellers for the holidays and now that they never expire in Ontario, they’re the gift that can keep on giving.
But while they’re still a relatively safe and decent present over all, they’re not perfect. There’s not much recourse for you if a store or chain suddenly goes out of business.
Lately someone has been sending out emails warning shoppers that gift cards from major stores, like Home Depot, could soon be useless. In the case of Home Depot, it’s not true.
“Home Depot Canada is not closing stores and in fact we still continue to open stores in Canada so it is safe for customers to come and buy gift cards from us or third-party retailers,” said Home Depot’s Tiziana Baccega. “Anywhere that gives you a receipt so you have proof that that card has been activated.”
But she adds that buying gift cards online, especially through third party sellers like Ebay, could pose a risk.
“We are notified that it is purchased fraudulently and we will turn off the card, so you unfortunately are left with a card that does not work.”
Here are just a few things to watch for when you’re buying one of these small but valuable items.
How Do Thieves Take Advantage Of The Cards?
Like most things involving the unscrupulous, it’s pretty sneaky. Every card comes with a series of numbers so when it’s activated by a store, they’ll know exactly how much the card is worth. Thieves write down the number and then call the customer service department of the local chain and ask how much of a balance is left on the card.
When it’s confirmed the plastic has been activated, they go shopping online, using the number and the amount to buy whatever they want, often leaving an untraceable path behind.
What Can You Do To Stop Them?
There are several ways to protect yourself and the recipient.
- Buy gift cards from the person behind the counter if you can. It’s safer than buying it off the rack.
- Opt for gift cards that have a protective backing or a scratch-off PIN number so that only the purchaser can use it.
- Check the packaging or the back of the card for tampering before you purchase the card.
Source: Ontario Government Consumer Services
Other tips:
Don’t buy cards from auction sites. You never know what you’re getting.
Request that the card you’re using be scanned as you watch. It will better allow you to keep track of the amount and to ensure that it hasn’t been tampered with.
Keep your receipt for as long as the card has money on it. Some retailers will replace a lost or stolen card with the amount owing.
See the rules surrounding gift cards in Ontario here
Photo credit: Robyn Beck/AFP/Getty Images
