According to Daniel Tsai, founder of ConsumerRights.ca, we are currently navigating a “wild west” of digital fraud. Despite efforts to increase security, Tsai warns that there is “no foolproof system” because scammers are constantly adapting their tactics to exploit consumer trust.
Thank you for reading this post, don't forget to subscribe!Because gift cards lack the same legal protections as credit cards, once the funds are gone, they are nearly impossible to recover. Here is how to stay safe in an unpredictable market.
The Expert’s Guide to Avoiding Swindles
1. Recognize the “Red Flag” Scenarios Scammers rely on high-pressure tactics. If you receive a call, text, or email claiming any of the following, hang up immediately:
- Government/Legal Issues: Claims that you owe back taxes (IRS/CRA) or have a warrant for your arrest.
- Utility Threats: Warnings that your power or water will be shut off unless you pay via gift card.
- Family Emergencies: A “grandchild” or friend claiming they are in jail or a hospital and need immediate funds.
2. Perform a Physical Security Check Fraud often starts at the store shelf. Before purchasing a card:
- The “Scratch” Test: Feel the back of the card. If the protective coating over the PIN feels bumpy, looks like a sticker, or has been tampered with, put it back.
- Barcode Verification: Ensure the barcode on the packaging matches the barcode on the card itself. Scammers sometimes paste fake barcodes over real ones to divert your funds to their account.
3. Use “Deep Rack” Strategy Since scammers usually target the cards most accessible to them, avoid the very first card on the display. Reach toward the back of the rack to find a card that has been handled less frequently.
4. Keep Your Paperwork Always keep your physical receipt and the card itself until the balance is fully spent. If the card is compromised, the retailer or the card issuer will require the activation receipt to track the transaction or potentially freeze the funds.
Key Takeaway
“It’s a wild west when it comes to what scammers will do.” — Daniel Tsai
The most important rule to remember: Gift cards are for gifts, not for payments. If a stranger asks you to use a gift card to pay a bill or help a friend, it is a scam 100% of the time.
