Seven tips for guarding against gift card scams

Q: In my family, gift cards are the most popular item to give, and receive. My children like the convenience of being able to purchase what they want, and I like not having to brave those long lines for a gift they may not like. I do hear a lot about gift cards being purchased and somehow ending up with no money on it. How can I be sure this doesn’t happen to me?

A: According to the National Retail Federation, 60 percent of consumers are hoping to receive a gift card this holiday season.

It’s best to use caution when purchasing a gift card, so you don’t end up getting scammed out of your hard-earned money.

Examine the gift card – Before purchasing a gift card, give it a thorough look to make sure the PIN number isn’t exposed, or the packaging hasn’t been tampered with. If anything looks suspicious, grab a new one.

Scammers are known to remove gift cards from the store rack and record the numbers associated with that card. They put the card back on the rack and wait until a customer purchases it. Once the customer buys the card, the scammer uses the number online and wipes the gift card clean prior to the consumer using it.

Do your research – Double check the terms and conditions, the expiration date or any fees tied to the gift card before you decide to purchase one.

Some stores charge a service fee, or limit the gift card to in-store only.

Register your gift card – If the retailer allows the option to register your gift card, take advantage. Registering your gift card makes it easier to keep track of any misuse occurring, that way you can report it sooner.

Use caution when buying from a third party – If you purchase a gift card at an auction or on a third party website you may end up with a gift card that has no value, is expired, or was fraudulently obtained.

The seller could sell you a gift card that does have an actual balance on it, but steal the numbers wipe the gift card clean after you receive it.

Is the retailer solid? – If you purchase a gift card from a company that files for bankruptcy or goes out of business, the card may be worth less than you had anticipated, or completely useless.

Keep your information private – No reputable company would ever ask you for personal information when purchasing a gift card.

Careful reselling – If you decide to place your gift card online, use caution. Usually the buyer will ask to three-way the merchant to verify the card is active and has a remaining balance. While listening, the buyer records the touch tone numbers entered to intercept the gift card number, and then they use the gift card without even paying for it.