Consumer alert: DATCP receives complaints after consumers find new gift cards have no funds

As the holidays approach and people begin buying gifts — and gift cards — for loved ones, state officials are warning consumers to look out for scams.

Officials at the state Department of Agriculture, Trade and Consumer Protection issued a consumer alert Monday after receiving several complaints from consumers who found newly purchased, unused gift cards had balances that were zeroed out.

Lara Sutherland is the administrator of DATCP’s Division of Trade and Consumer Protection. She said gift card scams aren’t new, but they tend to peak during the holidays as demand goes up.

“What we’re seeing is people complaining about using a card that had money on it, and they knew it would have money on it and the money is gone,” Sutherland said. “The way it works essentially is that there are bots — and most folks would know what bots are, but they’re automated programming that allows the screening of millions of cards in real time to see if there’s still money left on the card — and if there is, they can then spend down that card electronically.”

Officials said criminals can use the software applications to find online gift card balances just seconds after a card becomes active. DATCP also said physical tampering may be involved.

Sutherland said scams don’t mean people should avoid buying gift cards.

“We’re not telling people not to buy gift cards,” Sutherland said. “They’re a great way to buy a gift for that difficult person that you don’t know what to buy for, or they want a gift card so they can buy what they want for themselves. So certainly, you can buy gift cards from your favorite outlets and businesses, but just be cautious when you’re doing so and really use them as quickly as you can.”

DATCP recommends buying gift cards from known sources and avoiding purchasing them online. Consumers should also keep a copy of the receipt that identifies how much money is left on the card, that way if the card is depleted, the buyer can reach out to the business with the possibility of them honoring the previous balance.

If you believe you’re a victim of a scam, call DATCP’s Consumer Protection Hotline at 800-422-7128, or visit DATCP’s Consumer Protection webpage.

Editor’s note: WPR’s Hope Kirwan contributed to this story.