PROTECTING YOUR FINANCES
Gift cards are a classic red flag that something is amiss. Let’s say someone claiming to be from the IRS calls you about an emergency with your online account. This person can fix it, but first, you need to send a gift card as payment right away. You say, “Uncle Sam uses gift cards? I don’t think so,” and hang up. Nice job. You saw right through their scheme.
As more people learn about this scam, criminals are coming up with new ways to leave their victims with a $0 balance. Although Flagstar doesn’t sell gift cards, we’re here for you at every step of your financial journey, which includes helping you fight fraud and protect your hard-earned money.
How new gift card scams work
Scammers have developed multiple strategies to steal gift card funds, such as:
- Tampering with gift card barcodes on store displays
- Selling discounted gift cards that are counterfeit, stolen, or have a $0 balance
- Using malicious software to find and drain gift cards
- Create phony “check your balance” websites that trick people into revealing card information
How to protect yourself from gift card scams
There are some things you can do to avoid getting scammed. Here are a few tips courtesy of the FBI, the Federal Trade Commission, and Flagstar:
- Select a gift card from the middle or back of the stack. There are no guarantees, but impatient criminals are more likely to put phony cards near the front.
- Look for signs of tampering. Don’t buy if the card or packaging is bent or damaged, if the barcode has been scratched off, or if the barcode doesn’t match the numbers on the packaging.
- Skip the gift card rack entirely. Instead, purchase gift cards from behind the counter, if possible, because they’re less likely to have been tampered with.
- Pay attention when you check out. The numbers on the receipt should reflect the gift card and the amount you pay.
- Stick with official websites. Buy Apple gift cards from apple.com, Target gift cards from target.com, and so on. Official sites are also the only place you should check your balance.
- Register the gift card if it’s an option. Keep the receipt, too. If the balance is drained, these things could help you reclaim your funds.
- Send or receive money with Zelle®. Instead of giving gift cards, Flagstar customers can use Zelle® to send money to people they trust, even if they bank somewhere else1. It’s just as secure as your Flagstar transactions, there are no fees to use the Flagstar app, and you can add a personalized message if you’d like.
Reporting gift card fraud
If you are the victim of a gift card scam, report it to the local police, your state’s attorney general, and on the FBI Internet Crime Complaint Center You can also file a report with the Federal Trade Commission at reportfraud.ftc.gov.
Then, contact the store, restaurant, or business that issued the gift card. Some of them will reimburse you if you can prove the card was yours. Grocery stores and other places that sell gift cards from various companies won’t be able to help you.
Gift card scams show the importance of being vigilant in protecting your finances. You can reduce your risk by understanding these scams and using preventive measures. Stay informed and know that Flagstar is here to support you in safeguarding your financial well-being.
