Stopping gift card theft

RALEIGH — You've heard the endless stories of people stealing money off of gift cards. According to the Federal Trade Commission (FTC), these scams cost American consumers tens of millions each year.

When it comes to gift cards, criminals not only steal their numbers to drain pre-paid balances, they also ask people to send them gift cards as a form of payment for their scams.

According to AARP here are the signs to watch out for when it comes to fraud:

1. You’re directed to buy one or more gift cards — often referred to as “electronic vouchers” — as a quick means of making payment.

2. You’re told to share the numbers on the back of the gift cards, by reading them off or sending a picture.

3. The request comes from someone you wouldn’t expect to ask for money this way:

• A Social Security warning of a problem with your account
• A utility company warning of an imminent shutoff
• A lottery company promising a big prize — once you pay some fees upfront
• A grandchild needing bail or facing another financial emergency.

If you are asked to pay someone in gift cards, its most likely a scam.

To further prevent gift card scams, AARP is supporting state legislation HB 315, a bill that will deter potential criminals and provide a clearer path for law enforcement to prosecute gift card crimes and protect consumers.

Get more tips on preventing gift card scams and more, with the AARP Fraud Watch Minutes.