SACRAMENTO COUNTY, Calif. — With the holidays upon us, many shoppers are turning to gift cards as an easy and thoughtful present for loved ones. However, as law enforcement reveals, this popular gift item is also attracting scammers eager to steal your money.
The National Retail Federation’s annual survey shows this season 53% of consumers are planning to purchase gift cards.
While gift cards remain a convenient option, they are increasingly being targeted by criminals who use sophisticated methods to tamper with them, leaving buyers empty-handed.
How Gift Card Scams Work
Sgt. Amar Gandhi of the Sacramento County Sheriff's Office warns that scammers are getting more creative. This month, authorities arrested four people who were accused of tampering with over 7,000 gift cards across several states, including California, Nevada, Oregon, and Washington. The stolen cards were linked to an organized crime ring operating from China.
“We will call these criminals a lot of names, stupid is not one of them,” said Gandhi. “The worst part about it is these victims do not even know they have been victimized”
The scammers target gift cards, tamper with their activation codes, and then return them to store shelves. When an unsuspecting shopper buys a card, they believe it is loaded with money, only to find it empty once they attempt to use it.
In many cases, the stolen funds are transferred out of the country within seconds.
How to Protect Yourself
To avoid falling victim to these scams, Gandhi recommends several precautions:
- Buy Directly from the Company: Whenever possible, purchase gift cards directly from the retailer’s website or store. Sharing the code with the recipient ensures the card’s security.
- Look for Secure Storage: Choose stores that keep their gift cards in locked or secure areas. Gandhi advises, “If the cards are not secured, you do not know who else may have tampered with them.”
Recent reports from the Roseville Police Department also highlight an emerging scam where counterfeit gift cards are placed among legitimate ones, further complicating the problem.
As retail theft continues to rise, experts predict that gift card security may become just as important as locking up other high-theft items, such as deodorants and shampoos.
What to Do If You Have Been Scammed
If you suspect you have purchased a tampered gift card, immediately report the issue to the retailer. You should also contact law enforcement to help investigate the crime.
The Sacramento County Sheriff’s Office says it has recovered around 20,000 gift cards with a potential loss value of $10 million through its Organized Crimes Task Force over the last year.
WATCH MORE ON ABC10 | A major arrest for a scam where thieves steal money off gift cards
