How to Avoid Fraud on Prepaid Visa and Mastercard Gift Cards.
Prepaid Visa gift cards are a popular and convenient gift option for many occasions, offering the flexibility of cash with the security features of credit cards. However, their popularity also makes them a target for fraudsters. Understand the various fraud schemes and know how to protect yourself is crucial.
We have added a list of the various typesof prepaid gift card fraud, and what to look out for:
Types of Prepaid Visa Gift Card Fraud.
- Card Tampering: Fraudsters tamper with cards on display in stores, scratching off the panel to get the card number and security code. After noting these details, they often cover the codes back up with stickers that can be purchased online. The fraudster then waits for the card to be activated and drains the funds.
- Phishing Scams: Some scams involve tricking the cardholder into handing over their card details. This can be done through fake websites, emails, or phone calls claiming to need the card information for verification or to unlock some fictitious benefit.
- Fake Card Issuance: Scammers create counterfeit gift cards or tamper with the barcode of an inactive card to divert the activation funds to another card they control.
- Reselling Fraud: Scammers buy gift cards with stolen credit card information and sell the gift cards at a discount. The buyer of the gift card unwittingly finds themselves in possession of a card purchased fraudulently, which can lead to the card being canceled or funds being clawed back.
- Online Auction Scams: Fraudsters list gift cards for sale on auction sites but send counterfeit or zero-balance cards to the buyers. Alternatively, they might send a valid card and drain the balance after the card has been sold.
How to Avoid Falling Prey to Prepaid Visa Gift Card Fraud.
- Purchase from Reputable Sources: Always buy gift cards directly from known retailers, their official websites, or from authorized bank branches. Avoid buying gift cards from online auction sites or at a point of sale that seems unofficial or secondary.
- Inspect Before Buying: Physically check the card for any signs of tampering before purchasing. This includes checking that the packaging is intact and that the PIN on the back of the card is properly covered. If anything looks suspicious, pick a different card or report it to the store.
- Keep Receipts: Always keep the receipt as proof of purchase and activation until the gift card balance is fully used. The receipt can be useful if you need to verify the card’s activation in the event of fraud.
- Register the Card: If the issuer allows, register the gift card on their official website. This can help protect the balance, as some issuers will replace stolen funds on registered cards.
- Use Quickly: Reduce the window of opportunity for fraudsters by using gift cards soon after purchasing them.
- Secure Your Purchase: When buying or using gift cards online, ensure the transaction is secure by looking for “https” in the URL and using secure payment methods.
What to Do If You Are a Victim of Prepaid Visa Gift Card Fraud.
- Report Immediately: As soon as you suspect that a gift card has been compromised, report it to the card issuer. Provide them with the gift card number, proof of purchase, and any details of the transaction to help them trace and possibly reverse the fraudulent activities.
- Check Your Balance: Regularly check the balance of your gift card if you haven’t used it immediately. This can help you catch any fraudulent activities early.
- File a Police Report: If significant amounts are involved, consider filing a report with your local police. This can help with investigations and add to the documentation needed for any claims.
- Monitor Your Accounts: If you suspect that personal information has been compromised along with your gift card details, keep an eye on your other financial accounts for any unusual activities.
- Learn and Share: Educate yourself about different types of fraud and share your experiences with friends and family to raise awareness about the risks associated with prepaid gift cards.
As always, stay vigilant!