TYLER, Texas (KLTV) – Experts are advising consumers to be careful when buying gift cards heading into the holiday season so they do not fall victim to scams.
This week two men were arrested in Tyler who are alleged to be involved in a gift card tampering ring.
Jeff Roberts, intelligence operations captain with the Texas Financial Crimes Intelligence Center, said gift card scams are a nationwide issue.
“These are organized criminal groups that are doing nothing but this, and it’s costing billions,” Roberts said.
The FCIC says through gift card draining, criminals track cards that they’ve tampered with and put back, then they drain the balance electronically once someone buys and loads them.
“They meticulously take them apart, gather the important information that’s off the card like the card number and the pin, and they log that,” Roberts added.
Paying attention to the way the gift card appears, Roberts said, is key to not falling victim to scams.
“These suspects do a really good job of methodically putting them back together,” Roberts mentioned. “Even check the balance with the store after purchase to make sure it’s still good.”
Mechele Mills, president and chief executive officer of Better Business Bureau East Texas, said in many cases shoppers who get scammed do not get their money back.
“It’s best if you can purchase from a place that actually has these cards either really close to the cash register so they’re monitored a lot more closely, or if they’re in a covered display, or if they just keep these cards behind the counter because they’re less likely to have been tampered with.”
The FCIC said consumers who see suspicious gift cards should report it to the retailer and law enforcement.
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