I’ve been hearing from people about how gift cards from businesses can easily be scammed, but I just don’t see how that can be done. I mean, they’re not activated until you buy them, and then they’re just stored-value cards, right? Can you explain?
Well, I don’t know that I want to get the reputation of being an expert criminal mastermind, but I did recently read about one ingenious method by which companies like Wal-Mart, Target and The Gap are encountering problems with their gift cards.
The key is that gift cards each have a unique serial number in the magnetic strip and then the gift card management system uses a centralized computer to track outstanding balances and usage.
Without any scams involved, it works great and if you know the unique ID number of your card, you can even call up and report it stolen, without losing any of the remaining balance.
The problem arises when you realize that small handheld mag-strip scanners are inexpensive and easily acquired. Now imagine this: a criminal has one of these devices in his (or her) pocket and walks into a store that offers these plastic gift cards.
They grab a big handful of cards as if they’re a big spender, wander into a quiet corner (or a dressing room), then quickly scan each and every card to record their unique ID numbers. Then they’re done with the cards so they put them back on the display or leave them on a shelf for an unsuspecting employee to put away.
Now that afternoon you innocently traipse into the store and pick up one of these tainted cards, “charging it” with $500 for your sweetie.
That’s where the problem arises. The criminal can easily buy a gift card and charge it with $5, then reprogram the mag strip to match your card ID number (which they’d previous scanned and stored) and merrily shop until your balance goes to zero.
Now, how would they know when your card is activated and how much is left on it? Because all of these stores that offer plastic gift cards also offer a system where you can check your card balance via telephone with just the ID number. Every 4-5 days the criminal checks the balance on their stack of card IDs, and once one goes golden, they either start shopping or, worse, perhaps offer it for sale on a site like eBay.
Either way, I’m not sure that I’d be purchasing plastic gift cards for any of my friends with this sort of exploit so relatively simple. There are better and safer ways of sharing your affections.
Had same problem with walmart gift card at Russellville Arkansas Now my elderly mom is out $200.00 gift from sister that someone supposedly scimmed from card and simply told tough cookie file police report as if that replaces money.
TIP for Facebook users: To use a Vanilla Visa on Facebook, you have to register it with Facebook’s zipcode: 94304. I know it sounds crazy, but call Vanilla Visa if you don’t believe me. I was getting really angry, because every time I bought a Vanilla Visa, it wouldn’t work on Facebook, and I’d have to call customer service for them to “fix” it. Finally the last agent told me about the zipcode thing. Yeah, thanks for being a douche Visa.
I personally prefer the Pre-paid Master Card. I don’t think I ever had a problem with one. They do let you register your name and address, so you can easily use the card online, and keep track of your spending.
people have been doing this for a while, you’re not a ‘master criminal’
Well have y’all heard of square up? With square up people can deposit visa gift cards into there account, which means if I buy a $100 visa gift card from craigslist for a discounted price of let say $60, then swipe the card using square up and have the money put into my account, that means I make a $40 profit. The question is if I get the card from some stranger on craigslist and I check the card buy calling the number on back to make sure the money is there before giving the person the cash am I safe if the visa card was stolen? Can the card be track to my bank account if it a visa gift card? Or can I get in trouble for getting the card from the unknow person? I mean. I would think people get gift cards all the time for presents and what not , so i should be ok if a person wants to sale his card for a discount price I would think?
Bruce, sounds good in theory, but the reality from what I keep hearing is that cops are just too busy with “real crimes” to worry about these sort of scams, so the end result is often that there are no investigations or prosecution.
Can’t the police just track the visa gift card to were ever it was used? Example if they use a gift card to buy a different gift card , aren’t there tracking numbers to help lead the cops to the person?
I have a business that accepts Visa gift cards. These cards are packaged so no numbers are exposed to the public until the card is purchased. It says debit on the card but I always run it through as credit and have never had a problem. Although you must know your balance to prevent it from being declined.
One other thing, mail your cards to me and when they clear, for a fee of course, I’ll run them through.
i always get my visa gift cards from the bank…i do it every month and never once had a problem
have you registered the card?
i bought a visa gift card from safeway and it works after registering it online and it is great for ordering online
Everyone should be very careful when when purchasing Target Visa Gift Cards because I got scammed!
I purchased eleven $100 Gift Cards for the Holidays. I made this purchase at the Burbank CA. Target Location. When i bought these cards, I opened them to use one of them, when i tired using it, it would decline the card so i was forced to open another one- yet again it got declined. I was forced to go back to Target and tell them what is going on with their cards. They very rudely told me that it is not their fault and that i should speak to Visa. After going back and forth i realized that the number scanned at the cashier to activate me gift card did not match the one on the reciept. I also noticed that on the bar code that is being scanned (to activate the card) there is a sticker-another barcode. I am guessing that these stickers are barcodes to activate other cards BESIDES MINE!
No i am in big problem waiting for answers from Visa. I am warning warning everyone of this problem because i dont want it to happen to you guys. So when buy, please make sure every number matches on ur gift card and your reciept.
Great info. Many people dont know this. I’ve learnt the hard way about a year ago. What a rip off.