New Law Alerts Consumers about Gift Card Scams

Con artists have latched on to gift cards as a convenient, untraceable form of payment in their scams. That’s why AARP Delaware supported a new law, which was sponsored by State Representative Larry Lambert, requiring retailers selling third-party gift cards to post signage alerting customers to protect themselves from gift card scams and telling them how to report it. 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.

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.

 Many scammers are now impersonating law enforcement, the IRS or utility companies. They call unsuspecting consumers and tell them to pay a bill immediately with a gift card or they will face fines or even jail time. Consumer awareness is the best protection to help people hold on to their hard-earned money. Last year, 49,000 Americans reported a gift card or reload card scam with losses of $217 million.

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



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