Toronto TikToker brings new attention to gift card tampering scam

A widely circulated TikTok is bringing new awareness to a gift card scam that tends to be more active during the holiday season.

“Guys, I want you to pay particular attention – especially while holiday shopping – to be very careful with gift cards,” said Nichelle Laus in the video posted to the platform at the beginning of December.

She goes on to show how a $100 PlayStation gift card rings up as an LCBO card when the cashier scans it.

“So what the scammer has at home somewhere is that LCBO card and that card would have gotten loaded with $100 had I paid for this card.”

Laus is a Toronto-based content creator who also happens to be a former cop. She told CityNews that the actual incident happened about three weeks ago at a Shoppers Drug Mart. It was the cashier who noticed the problem.

“She actually took my gift card and ran her finger across the back and went, ‘Uh oh this is a fake one,’” said Laus who noted the card’s barcode was slightly raised which alerted the cashier.

“If you put your finger along the top, you can actually feel the ridge,” Laus explained. “And if you lift it, you can see there’s an actual sticker.”

Scammers tend to target gift cards that are out in the open and not behind the counter, but according to police it’s not always easy to tell if the barcode has been tampered with.

CityNews reached out to Loblaws Inc., which owns Shoppers Drug Mart, to ask whether they would consider moving the cards behind the register.

In a statement to CityNews, the company did not address that directly, noting that this is an industry-wide issue.

“Gift card fraud is a problem impacting the retail sector in general. Our store’s teams are trained to recognize tampering, as well as other fraudulent situations involving the purchase of gift cards and do their best to intercept cards that may be fraudulent before they are purchased,” they said.

If you happen to fall victim to a scam, Toronto Police encourage you to not only notify the business but to report it.

“We do have investigative techniques at the financial crimes unit,” said Insp. Paul Rinkoff who heads the unit. “We have a section called the mass marketing section that is dedicated to investigating these types of scams and frauds and we do lay charges.”

Meanwhile, the Canadian Anti-Fraud Centre (CAFC) is warning of a scam of a different kind also involving gift cards.

CAFC spokesperson, Jeff Horncastle, said gift cards are being used in extortion attempts with criminals coercing individuals into paying off some kind of fake debt using the cards.

“Just important to be aware that government organizations or companies or financial institutions do not accept gift cards as a form of payment,” said Horncastle.

He added that, around the holidays, there is a particular scam that may read as less suspicious to a potential victim.

“A person’s email may get compromised and the fraudster will send an email to all the contact list saying they’re ill and, in the hospital, they forgot their wallet at home. They ask a favour from the victim by asking them to purchase the gift cards.”

Horncastle says education is key to preventing fraud.

As for the card tampering, police say there are ways to avoid falling victim: carefully inspect the gift card before purchasing it, particularly around the bar code and PIN area; check your receipt to make sure it matches the type of gift card and the serial number; register the card online as soon as possible; and never share the PIN.