The holidays are here. So are gift card scams.

When you’re unsure what to give as a holiday present, a gift card often seems like a good idea. Scammers know this and come out like yard decorations to deceive givers and recipients. The smartest thing you can do is to treat a gift card like cash and promptly use it.

Here’s how to protect yourself from bad actors in stores and cyberspace:

Danger #1: Card Draining

Fraudsters enter stores and tamper with physical gift cards. They record the card numbers and Personal Identification Number, or PIN; they then leave and wait. Once the card is purchased and activated, they drain the funds. Protect yourself by:

• Inspecting the card packaging for signs of tampering before purchasing it. The more exposed the card is, the more susceptible it is to alteration.
• Looking for intact protective covers and seals.
• Buying cards kept behind counters or requiring employee assistance.
• If you’re the recipient of a gift card, check the balance. If it's zero dollars, alert the giver and the card issuer.

Danger #2: Counterfeit Gift Cards

Criminals create fake gift cards or replicate legitimate ones, selling them to unsuspecting buyers. Remember the adage, “If it’s too good to be true, it’s probably not.” Protect yourself by

• Questioning an unrealistically low price or a “limited-time offer.”
• Being skeptical of gift cards sold on auction or resale websites.
• Purchasing gift cards directly from official retailer websites.
• If the card is invalid when you attempt to use it, immediately notify the giver and card issuer.

Danger #3: Phishing Scams

Scammers use deceptive emails, texts, or calls to trick people into revealing gift card information. They follow what are now classic playbooks: They make urgent requests for information such as card or financial information or click on any links in messages. The calls may come from fraudsters impersonating the card issuer, a government agency such as the IRS, or a tech support or customer service department. Protect yourself by:

• Never sharing gift card details over the telephone or by email or text
• Verifying requests independently if someone claims to need gift card payment.
• Reporting the suspicious activity to the giver and your financial institution

Danger #4: Balance Check Scams

Criminals intercept gift card numbers during balance checks, often through three-way telephone calls. They then drain the card balance. Protect yourself by:

• Checking gift card balances only through official retailer websites or apps
• Never sharing your gift card numbers during phone calls
  
  

Danger #5: Bot Attacks

Crooks use an automated bot, short for robot, to attempt to guess gift card numbers and drain balances. A bot is internet software most often used to automate specific tasks. They are faster than humans and can independently operate 24/7, making them cheap and easy to infiltrate card accounts. Protect yourself by:

• Registering your gift card with the issuer when possible
• Changing the PIN if that option is available

If you are a Tropical Financial Credit Union member and receive a suspicious email, text or phone call, do not reply to the message or click on any links. Also, do not provide information such as your Rewards debit card number or PIN. Instead, alert our institution by immediately forwarding the email to listening@tfcu-fl.org or calling (888) 261-8328.