So maybe Christmas now means the very predictable gift card swap, but hey, who can’t use a gift card? But beware, there are a ton of scams. This includes physical, not just digital, gift cards.
Regardless of who gave you the card, you should always practice security measures. Below are two common ways that fraudsters operate.
Transform Gift Card to Cash Twice.
If someone gives you a $200 gift card to an electronics store and then it’s stolen, you technically have lost money, as this is the same as someone stealing a wad of cash from your pocket.
Nevertheless, you’ll feel the loss just as much. Crooks who steal gift cards have numerous ways of using them.
- Joe Thief has plans on buying a $200 item with your stolen gift card from your gym locker.
- But first he places an ad for the card online, pricing it at a big discount of $130 saying he doesn’t need anything, he just needs money.
- Someone out there spots this deal and sends Joe the money via PayPal or Venmo.
- Joe then uses the $200 gift card to buy an item and sells it on eBay
- And he just netted $130 on selling a stolen gift card that he never shipped.
Infiltration of Online Gift Card Accounts
Joe Thief might also use a computer program called a botnet to get into an online gift card account.
- You must log into your gift card account with characters.
- Botnets also log into these accounts. Botnets are sent by Joe Thief to randomly guess your login characters with a brute force attack: a computerized creation of different permutations of numbers and letters – by the millions in a single attack.
- The botnet just might get a hit – yours.
Here’s How to Protect Yourself
- Be leery of deals posted online, in magazines or in person that seem too good to be true and are not advertised by reputable retailers.
- Buy gift cards straight from the source.
- Don’t buy gift cards at high traffic locations, at which it’s easier for Joe to conceal his tampering.
- Change the card’s security code.
- Create long and jumbled usernames and passwords to lessen the chance of a brute force hit.
- The moment you suspect fraudulent activity, report it to the retailer.
- Spend the card right away.
External | what does this mean?
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.