REGION – Gift cards have been the bread and butter for scammers for at least the past decade. They are easy to obtain, easy to use, and virtually impossible to trace. Criminals continue to see the versatility of gift cards, and while not as rewarding as account breaches or cryptocurrency, they can be the vehicle to rake in millions, one or two hundred dollars at a time.
There is a clear reality: nobody accepts gift cards in payment; not for taxes, utility bills, court fees, legal fees, medical bills, and the list goes on. True, the cards can be used to purchase items, but that use is generally limited to merchandise or services provided by the card issuer.
So why are scammers so successful using this approach? These criminals count on the intended victim becoming emotional and losing track of reality. Calls demanding gift card payments are made by impersonators pretending to be the IRS, the police, a friend or family member in need, a utility company, or an attorney; they convey a sense of urgency, and demand immediate payment. Combine urgency with the projection of authority and the trap is set.
Don’t respond to the information, threats, or demands made on the phone or in a text message. Step back and take a minute to consider what is happening, and have a plan of action. Ask the person who is contacting you to provide a callback number. If he or she cannot, it’s a scam. If you are provided with a number, check it out online. Most phone numbers used by scammers can be identified by conducting an online check of the number – type “is (phone number) a scam?” As an alternative, call the identified agency, company, or business using a verifiable number, not one provided by the caller. Your search will not provide a direct answer, but gives an opinion on the likelihood of the number being suspect.
Generally, victims of this crime end up losing whatever gift card payments were sent (you may remember a disclaimer that came with the card stating that you should treat the card as if it is cash). Some companies are flagging fraudulent transactions and freezing the balances on the cards (they actually want to return the money to the owners). There are a few steps victims can take: 1) Report the incident to the company issuing the card(s). Give the company the information on the purchase receipt, and the actual card number. 2) Ask for your money back; there may be an available balance on the card if the card was frozen or locked before being emptied. 3) Report the crime to the Federal Trade Commission at www.reportfraud.ftc.gov.
Speed in reporting is essential. The more time passes after the commission of the crime, the less likely you will interrupt the progress of the crime.
This column is provided to your local newspaper by the AARP Vermont Fraud Watch Network. Fraud Watch is a volunteer program operating to inform and educate all residents of western Massachusetts, western New Hampshire, and Vermont. We are 10 volunteers with backgrounds in education, law enforcement, law, nursing, technical services, government, and social service, helping to educate others in self-defense against fraud and scammers. Beyond this column, AARP Vermont Fraud Watch distributes literature, conducts seminars, consults with state and local organizations and officials providing information to individuals and organization in this tri-state area. All services and materials are provided free of charge to all age groups. Fraud education seminars are provided on request to the email address provided below
The Fraud Watch Network is recruiting volunteers throughout the region. Experience is not necessary, and we will provide the training and guidance. Volunteering for Fraud Watch can be an educational experience, and an opportunity to help others in your community. Email egreenblott@aarp.org with questions or comments.
Elliott Greenblott is a retired educator and coordinator of the AARP Vermont Fraud Watch Network. He hosts a CATV program, “Mr. Scammer,” distributed by GNAT-TV in Sunderland, Vt., www.gnat-tv.org.