Delaware's Gift Card Scam Bill Signed into Law by Governor John Carney

Recently, Governor John Carney signed HB 317 into law. The legislation, sponsored by State Representative Larry Lambert, requires retailers selling third-party gift cards to post signage alerting customers to protect themselves from gift card scams and telling them how to report them. The bill is aligned with AARP's efforts to prevent fraud through its Fraud Watch Network and had AARP Delaware's full support as it sailed through the Legislature and passed unanimously.

 

Con artists have latched on to gift cards as a convenient, untraceable form of payment in their scams. Gift card scams take several forms. One fraudulent tactic is when scammers tamper with gift cards and then return them to the sales rack. Consumers should examine gift cards for torn casing, or scratches and dents.

 

Scammers have evolved their tactics, often posing as law enforcement, the IRS, or utility companies. They call unsuspecting consumers, demanding immediate payment of a bill with a gift card under the threat of fines or jail time. The best defense against such scams is consumer awareness. Last year, 49,000 Americans reported gift card or reload card scams, resulting in $217 million in losses. By staying informed and vigilant, consumers can protect their hard-earned money.

Businesses can build customer loyalty and increase consumer confidence by posting this easy signage at their gift card kiosks or check-out registers.



If you can spot a scam, you can stop a scam.