Credit Card Fraud on the Rise

The following has little or nothing to do with emergency preparedness, but I thought it useful information for the upcoming holiday shopping season.

GMW

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Fraud Alert from the Better Business Bureau

The Better Business Bureau (BBB) has issued a warning about a new type of gift card fraud. Criminals have figured out a way to take advantage of unactivated gift card displays that many stores have set up. They jot down the card number, then wait a few days and call the card's 800-number to find out whether it's been activated, or how much money is on the account. Then, they shop online using the gift card's number.

"It's just like cash and if anyone gets their hands on the number it can be used," says Southern Colorado Better Business Bureau President Carol O'Dell.

The BBB says this type of gift card fraud is occurring, on average, about five times a day nationwide.

"What the scammers are doing is they are taking those gift cards off the racks, recording the numbers off the back of the card, hanging the gift cards back up, and they hope somebody will pick that up and take it to the cashier, activate it, and then what they do is they call the 800 number within a few days and see if the card's been activated," said Jim Hegerty of the Omaha BBB. "If it is, they go on a free shopping spree."

How to Protect Yourself From Gift Card Fraud

Gift cards can be a safe bet if you follow some simple precautions.

"Caution is the word here," Hegerty said.

Some easy tips to avoid gift card fraud include:

• Don't buy gift cards that are located on displays the public can access, or that have all their security codes visible (even if they come from behind the counter).

• Look for gift cards that have scratch-off security codes. If it has been scratched off, don't buy the card and report it to the store's manager.

• Don't buy gift cards from online auction sites, which may be selling stolen or empty cards. Purchase gift cards online only from known, reputable retailers, or go to the actual store to get them.

• Anytime you buy a gift card, call the 800-number to check the balance soon after you get home. You can also ask the cashier to scan the card immediately after you buy it to ensure the balance is correct.

• Keep your receipt for the gift card in case of problems