Timely Holiday Reminder
Gift Card Consumers Should Be Aware of
Internet Auction Site Scam
Gift cards are popular presents to give to family and friends, but be wary when bidding online for gift cards at Internet auction sites.
How the scam works
The victim will bid for a gift card for a reduced price at an Internet
auction site. The bidder/buyer may think that they are purchasing a gift
card from a restaurant or department store valued at $100 for a reduced
fee of only $75, but when the bidder/buyer receives the card, the actual
value may or may not be what was originally offered. Many consumers have
found that cards purchased on these sites have little or no value.
The gift card scheme is another form of "e-fencing,” which refers to the online trafficking of stolen goods. e-fencing scams such as this, target and victimize unsuspecting consumers who are looking for a bargain.
What you can do to protect yourself against this scam
- The National Retail Federation suggests consumers only purchase gift cards from legitimate retailers where receipts are given along with the purchase.
- Use common sense. If it sounds too good to be true, it usually is – trust your instincts.
We also suggest you sign up for our Fraud Prevention e-LERT. Our Fraud Prevention e-LERT will immediately advise you when we have added a new article or warning to the ‘Fraud Alert' section of our website.
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