North Texans have reported alarming cases of gift card fraud in which activated cards mysteriously lose their balance.
Increased reports of used up gift card balances
Tara from Fort Worth recently experienced this herself: She activated a $500 gift card, but found that the balance had run out before she could use the card. Even though she kept her activation receipt, Tara had to get a refund from the store. Unfortunately, Tara’s experience is not an isolated one. Our teams have been inundated with similar complaints from consumers who found gift cards with empty balances. Burleson Police have raised awareness of this growing problem and recently seized thousands of compromised gift cards.
Police uncover widespread manipulation ring
The Burleson Police Department’s investigation into gift card fraud intensified on June 27 when license plate readers detected a vehicle linked to a nationwide gift card tampering ring. Officers observed two men leaving a Target store and discovered nearly 3,000 gift cards in their possession. Security camera footage captured the suspects removing gift cards from the store and then returning them. Further investigation led to the seizure of an additional 1,800 gift cards at a Carrollton hotel that had been shipped from California, suggesting a larger, possibly nationwide network involved in the tampering. Sergeant Brandon Glass of the Burleson Police Department noted, “The scope of this incident goes beyond our region and indicates a more extensive operation.”
Understanding Gift Card Manipulation
Gift card tampering involves taking new cards off the shelves, copying their numbers and security codes, and then putting them back on the shelves with tampered seals. Once a consumer activates such a card and loads it with funds, fraudsters quickly redeem the funds online before the legitimate user can use it. To protect themselves from this type of scam, police advise consumers to thoroughly inspect gift card packaging for signs of tampering. Look for irregularities such as adhesive residue or broken seals. For added security, consider purchasing e-gift cards directly from retailers or from stores that store the cards in sealed sleeves.
Consumer precautions and law enforcement actions
Collin Gregory of Burleson Police advises consumers to be vigilant: “Don’t just grab a card off the shelf and walk away. Inspect it for signs of tampering and keep your activation receipt.” If a card’s balance is depleted, the receipt can be crucial in requesting a refund or resolution. Recent gift card fraud cases have resulted in several arrests nationwide. In addition to the suspects in Burleson, two people were charged in Plano, Texas, earlier this year, both of whom were sentenced to probation and community service for their involvement in similar schemes. Nationally, law enforcement continues to address these issues, and the number of reported cases is increasing.
Steps to take if fraud is suspected
The Federal Trade Commission warns against using gift cards as a form of payment and advises against giving out card details to unwanted contacts. To safely check your card balance, use the merchant’s official website or call the number on the card itself and avoid dubious third-party websites. If you have any problems with gift card balances or suspect fraud, contact them at 844-5RESPND (844-573-7763) or file a complaint through their online form for assistance and resolution.
