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Scrooges Threaten Holidays With Gift Card Scam

November 29, 2006

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This time of year gift cards grow in popularity, and, unfortunately, are playing a prominent role in a new scam.

As a result some people who receive gift cards may come up empty-handed when they try to use them.

Security experts say it works like this: scammers write down numbers on the back of gift cards on store racks.

After several days, they call an 800 number to find if the card has been activated.

If it has, that means it has been sold and is probably under someone's tree. The scammer goes online, using the card to pay for a shopping spree.

When the recipient tries to use the card, they learn it has a zero balance.

The reason the scam works is simple -- the cards are on racks where customers have easy access to them.

Security experts say placing the gift cards behind the register would go a along way towards solving the problem.

What You Can Do

If you're buying gift cards, insist that the cashier gives you cards that have not been displayed on a rack. There is nearly always a back-up supply of cards behind the register. Ask that your cards be taken from that supply. If the cashier refuses, don't buy the card.

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