BBB issues gift card advisory

More than $25 billion in gift cards were purchased in 2006. Where there is big money, crooks, criminals, thieves and scammers are soon to follow.

The Better Business Bureau (BBB) system has issued an advisory across the United States and Canada warning that a number of scams surrounding gift cards have evolved and consumers should be cautious about where and how they purchase them.

"Gift cards have provided a solution to the age-old problem of deciding what types of gifts to buy. But with the convenience of these cards, there is also the possibility of fraud," said Michael Clayton, President/CEO of the Better Business Bureau of Southeast Texas.

Two types of gift cards exist: Those sold by retailers, which can only be used at that store or sister stores; and bank cards, which can be used just about anywhere.

The bank-issued debit cards, however, come with a variety of fees and restrictions. Gift cards can also be purchased on Internet auction sites, but oftentimes these cards have been stolen and ultimately hold no value.

In another scam, crooks copy the numbers on the back of gift cards displayed on retail store racks and then wait several days in hopes the card is sold before calling to find out the balance left on the card. When they find one with a balance, they go online for a free shopping spree using that card number, essentially picking the pocket of the legitimate customer or gift card recipient.

The BBB offers several protective measures consumers can take to guard against ending up with a fraudulent gift card:

• Buy from reputable sources, preferably directly from the store and, if possible, not off a rack.

• Do not rely solely on a sales clerk or cashier to select cards from publicly inaccessible stock (e.g. behind the counter). Always personally examine the card for signs of tampering, specifically looking for evidence of the PIN having been exposed.

• When buying a gift card, keep the original purchase receipt with the card as proof of purchase.

• Immediately after buying a gift card, ask the cashier to scan the card itself to ensure the card is valid and has the proper value.

• Retain the proof of purchase receipt.

• Most gift cards will have a toll free telephone number on the back of the card for consumers to report problems through company customer service representatives.

• Use of company customer service operations as a first step in the process - as opposed to returning to the point of purchase where personnel will have little authority or opportunity to resolve the issue.

For more information about the BBB 835-5348 or visit online at www.southeasttexas.bb b.org.