KEEP AN EYE OUT – BEWARE OF NEW HOLIDAY GIFT CARD SCAMS
Every holiday season brings on an increase in gift card scams. Unfortunately, scammers often use gift cards as a way to steal value from their victims. There are dozens of ways gift cards can be used by scammers to steal money, but here are the top three:
PAYING A BILL: A scammer will use a voice-based phone call (but it can also be done via text message or email) to inform the victim that their regular payment to a trusted service has been declined or that there is a new emergency charge. A good example of the former is a scammer calling and impersonating the victim's power company. They will claim that the victim's regular electricity payment was declined and that the victim's power will be turned off in a matter of hours unless they go to the store and pay the bill with gift cards.
FRAUDULENT GIFT CARDS / MISUSE OF GIFT CARDS: Scammers have substituted fake gift cards with real ones at stores. How to prevent it? Look for signs of tampering when you buy a gift card. Some people say to pick gift cards from the end of the stack, but they could be anywhere.
PHISHING (The fraudulent practice of sending emails or other messages purporting to be from reputable companies in order to induce individuals to reveal personal information, such as passwords and credit card numbers. "respondents named ransomware and phishing as leading security concerns")
This document is designed for general information only. The information presented on this document should not be construed to be formal legal or tax advice nor the formation of a lawyer/client relationship.
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