Retailers, consumers both have role to play in preventing gift card fraud: advocacy group

A group that advocates for consumers in Manitoba says everyone from gift card manufacturers, right down to customers have to do their due diligence to prevent tampering.

Winnipeg police say a new scam has surfaced in which thieves steal cards, remove them from the packaging and replace themwithold or useless cards beforereturning the packagesto the shelf.

Gloria Desorcy, executive director of the Manitoba Branch of the Consumers' Association of Canada, said despite new and various technologies and packaging that has changed over the years, gift card scams are still taking place.

"It's very disappointing when you buy a gift for someone and it's not the gift you expected,"she said.

Preventing gift card fraud

5 years ago

Duration 2:03

A group that advocates for consumers in Manitoba says everyone from gift card manufacturers, right down to customers have to do their due diligence to prevent tampering.

Monica Wolff believes she may have scammed when she bought more than a dozen gift cards for the business she works for.

Wolff said a $200 prepaid credit card came back as invalid when the person she gifted it to tried to activate it, and later wouldn't work when the person tried to make a purchase.

"It's frustrating," she said, adding that she isn't sure if any of the other 18 cards she bought have the same issue.

"I mean it's financially hard on a lot of people ... you try to do something good to keep spirits high and then you've got to deal with this.

"It's like 'great, thanks.Merry Christmas'."

Examine cards

Desorcy advises people to carefully examine cards for anything suspicious like taped up packaging or any visible sign of tampering when you purchase them, and to ask the retailer to check and confirm itis a valid card with the right amount.

She said while keeping gift cards behind the counter may seem like a logical solution, it might not be practical.

"You want consumers to have the choice of being able to browsethem," she said. "Certainly the safety of having the actual card you're going to buy coming out of a box behind the counter is a good thing, but that has to be balanced with the choice and convenience of the customer.

"There is probably a way that could be managed," Descorcy said. "It's something we certainly need to start thinking about."

Wolff isn't sure how the card she bought could have been tampered with, as it was kept behind the counter, but said the retailer did replace it. She saidit still left her feeling embarrassed, though.

"Every time you turn around, there is something new going on," she said.

However, Desorcy said the onus shouldn't just lie with the consumer, and suggests something as simple as a retailer moving their rack of cards to a place in sight of staff members could be one way to deter scammers.

"I think everybody in the chain, in the marketplace chain, has a responsibility for trying to stop fraud and crime," she said. "Yes, consumers have theirs. But it's not solely on their shoulders, everybody should be doing their part."