### The Hidden Dangers of Gift Cards: Safeguarding Your Purchase
Initially, selecting the perfect gift card can appear to be the most challenging aspect, especially with the multitude of retailers to choose from.
For instance, which card would your tech-savvy best friend prefer—**Amazon** or **Apple**? And for your coworker who enjoys dining out, is **DoorDash** the right pick, or should you opt for a well-known chain like **Olive Garden**?
While you concentrate on making the ideal choice, an overlooked risk lurks: the possibility that someone has already intercepted the data on the back of the card, poised to deplete the funds you intend to load onto it.
#### An Escalating Scam That’s Easily Missed
This type of fraud may sound unbelievable, yet it’s a very real and expanding issue. Criminals, frequently affiliated with organized crime groups, visit retail locations featuring gift card displays, swipe multiple cards, and manipulate the packaging to capture the barcode and PIN that activate the card. In certain instances, the deception occurs right at the register, where a cashier might exchange your newly bought card for one that has already been drained.
The outcome? When the recipient goes to redeem their gift, they discover that the balance is already zero.
#### The Scale of the Issue
Determining the exact scale of gift card fraud can be challenging, but if even 1% of the $570 billion that Americans load onto gift cards yearly is stolen, that would translate to more than $5 billion in losses for consumers, as estimated by **ProPublica**.
While purchasing a digital gift card directly from the retailer or brand is the most secure method, there are steps you can take to minimize your risk when buying physical gift cards. Here are several expert recommendations to safeguard your purchase:
### 1. Examine the Gift Card Before Making a Purchase
Some fraudsters are so adept at manipulating gift cards that distinguishing genuine cards from tampered ones can be difficult. Though new regulations in Maryland seek to enhance gift card security across the country, these cards still remain susceptible to tampering.
The **Federal Trade Commission (FTC)** suggests verifying that the card’s security sticker is intact and that the PIN on the back isn’t exposed. If anything appears questionable, relinquish the card to a store employee and select a different option.
### 2. Maintain a Record of the Gift Card and Receipt
The FTC also recommends photographing both the gift card and the purchase receipt. This information can be vital should you need to report fraud to the gift card issuer or the retailer.
The **FTC** provides a contact list for major gift card companies. If your card’s issuer isn’t included, use the details printed on the card. If you encounter difficulty reaching the company or they decline assistance, you can also **report the fraud to the FTC**.
### 3. Purchase Gift Cards from Reputable Retailers
Although it may be tempting to obtain a gift card from an online auction platform or a third-party vendor, these cards could potentially be unauthorized or stolen. For greater reassurance, **Jory MacKay**, head of editorial content at the online safety firm **Aura**, advises acquiring gift cards directly from the brand’s official website.
### 4. Use a Credit Card Featuring Fraud Protection
If you own a credit card with fraud protection, consider using it when purchasing gift cards. Credit cards typically provide superior security against unauthorized charges and may offer $0 liability for fraud if you fall victim to a scam. Be sure to keep the receipt, as it will contain necessary information to share with your credit card provider.
### 5. Opt for Several Smaller Gift Cards Instead of One Large Card
While it may be appealing to give a single high-value gift card, **MacKay** recommends that buying multiple smaller cards could be a safer approach. If one card happens to be compromised, your total loss will be limited to a smaller sum.
### 6. Register the Gift Card Online, If Available
Certain gift cards can be registered online, which typically enhances protection and allows you to freeze the card or track its balance. **MacKay** points out that registering the card also simplifies the process of reporting fraud if the balance is drained.
### 7. Urge the Recipient to Use the Card Promptly
When presenting the gift card, gently encourage the recipient to utilize it soon. **MacKay** cautions that unspent cards are more susceptible to theft and hacking. If the card can be registered, suggest they do so immediately.
If the recipient discovers that the card has a zero balance, **MacKay** advises first confirming that you retain the receipt. Then, reach out to the retailer or card issuer to ascertain whether tampering or pre-draining occurred prior to purchase. Reputable brands and stores are often willing to replace or refund the card, particularly if you address the situation quickly.
“The essential part is to act swiftly—taking charge of