Apr 13, 2015, 12:55 pm
Last edit by: phant0m
************Gift Card Fraud Alert************
http://www.consumerfinance.gov/complaint/
How can I protect myself?
1) Do not buy a card that has been opened or looks tampered with. Inspect all packaging thoroughly before purchasing. Many posters say that the packaging looks pristine, but the glue seems excessive once opened. Open the package to inspect the glue before you pay for it, if the cashier allows that.
2) Use the card quickly. The card has no value until YOU add money. If you spend your funds before the fraudster figures out that it's loaded, you win. Or at least register your card. That might give you another layer of security but beware it might NOT be bulletproof.
3) Keep your receipts and packaging until your card is liquidated. You will need the receipt to make a claim.
I'll add a few more from the school of hard knocks (also now known as the school of the paranoid MSer)....
4) If it's the only card of its type left on the rack, should you buy it or not? Consider: did the fraudster remove all the other cards so some sucker would quickly come along quickly and buy the card he has placed there purposefully?
5) A corollary to #4: Should you buy the top card in a stack of cards, or dig deeper and pick out one a distance from the top? Did the fraudster put the card he wants some sucker to buy at the top of the stack so it would sell quickly and he could do his evil deed?
6) Open card packages soon after purchase. Don't wait a few days. If anything looks amiss (too much glue inside the pack, too little glue inside, glue in the wrong location, mag stripe doesn't look right, some card numbers illegible), call the 800 number on the back of the card immediately to report it and ask about a replacement.
Each link of Gift Card MS:
1. Gift Card issuer: Vanilla, Metabank, US Bank, Green Dot etc. There can be data hack. It is rare.
2. GC Merchant: grocery and drug stores. Online GC sellers (Simon Mall, Gift Card Mall etc.). The data hack is possible, but rare.
3. Shipping: GCs can be stolen. But this is not fraud.
4. GC Cash Out: Walmart, Dollar General, Family Dollar, CVS etc. This is very rare.
For unsold GCs with bar code exposed, the store is required to destroy the GCs. Fraud can happen when the unsuspecting store staff return the unsold GCs back to the shelf. But it is very rare to have a batch of GCs all tampered and returned to the store shelf.
Here is a web site with information about gift card fraud:
http://www.tripwire.com/state-of-sec...-so-lucrative/
Here are some stores where FT members have experienced fraud:
List of Stores to avoid or be Alert:
(1) Reported by IWOL in So Cal:
VONS => Ventura Blvd & Reseda
Reported by Lovenola:
Ralph's in Downey at 9200 Lakewood Blvd.
Ralph's in Pasadena at 211 E. Foothill Blvd.
Ralph's in Monrovia at 1193 Huntington Dr.
3) Reported by domino007
Ralphs in 13321 Jamboree Rd, Tustin
Ralphs in Irvine on Alton, Walnut and Irvine Blvd
Reported by DaveInLA:
Ralphs in Brea- 305 W Imperial Hwy. VGC was purchased in 12/2014.
Reported by 46sky:
Ralphs in Culver City on Venice Blvd - VGC purchased 2/2015.
Reported by Chrisflyer66:
Ralphs in San Diego on Sports Arena - VGCs purchased in 2014-2015.
Ralph's - 1435 W Chapman Ave, Orange, CA 92868 - Purchased 12/2019
Seems to me that only People in so.Cal are reporting
http://www.consumerfinance.gov/complaint/
How can I protect myself?
1) Do not buy a card that has been opened or looks tampered with. Inspect all packaging thoroughly before purchasing. Many posters say that the packaging looks pristine, but the glue seems excessive once opened. Open the package to inspect the glue before you pay for it, if the cashier allows that.
2) Use the card quickly. The card has no value until YOU add money. If you spend your funds before the fraudster figures out that it's loaded, you win. Or at least register your card. That might give you another layer of security but beware it might NOT be bulletproof.
3) Keep your receipts and packaging until your card is liquidated. You will need the receipt to make a claim.
I'll add a few more from the school of hard knocks (also now known as the school of the paranoid MSer)....
4) If it's the only card of its type left on the rack, should you buy it or not? Consider: did the fraudster remove all the other cards so some sucker would quickly come along quickly and buy the card he has placed there purposefully?
5) A corollary to #4: Should you buy the top card in a stack of cards, or dig deeper and pick out one a distance from the top? Did the fraudster put the card he wants some sucker to buy at the top of the stack so it would sell quickly and he could do his evil deed?
6) Open card packages soon after purchase. Don't wait a few days. If anything looks amiss (too much glue inside the pack, too little glue inside, glue in the wrong location, mag stripe doesn't look right, some card numbers illegible), call the 800 number on the back of the card immediately to report it and ask about a replacement.
Each link of Gift Card MS:
1. Gift Card issuer: Vanilla, Metabank, US Bank, Green Dot etc. There can be data hack. It is rare.
2. GC Merchant: grocery and drug stores. Online GC sellers (Simon Mall, Gift Card Mall etc.). The data hack is possible, but rare.
3. Shipping: GCs can be stolen. But this is not fraud.
4. GC Cash Out: Walmart, Dollar General, Family Dollar, CVS etc. This is very rare.
For unsold GCs with bar code exposed, the store is required to destroy the GCs. Fraud can happen when the unsuspecting store staff return the unsold GCs back to the shelf. But it is very rare to have a batch of GCs all tampered and returned to the store shelf.
Here is a web site with information about gift card fraud:
http://www.tripwire.com/state-of-sec...-so-lucrative/
Here are some stores where FT members have experienced fraud:
List of Stores to avoid or be Alert:
(1) Reported by IWOL in So Cal:
VONS => Ventura Blvd & Reseda
Reported by Lovenola:
Ralph's in Downey at 9200 Lakewood Blvd.
Ralph's in Pasadena at 211 E. Foothill Blvd.
Ralph's in Monrovia at 1193 Huntington Dr.
3) Reported by domino007
Ralphs in 13321 Jamboree Rd, Tustin
Ralphs in Irvine on Alton, Walnut and Irvine Blvd
Reported by DaveInLA:
Ralphs in Brea- 305 W Imperial Hwy. VGC was purchased in 12/2014.
Reported by 46sky:
Ralphs in Culver City on Venice Blvd - VGC purchased 2/2015.
Reported by Chrisflyer66:
Ralphs in San Diego on Sports Arena - VGCs purchased in 2014-2015.
Ralph's - 1435 W Chapman Ave, Orange, CA 92868 - Purchased 12/2019
Seems to me that only People in so.Cal are reporting
Gift Card Fraud !!!
Jun 17, 2015, 11:16 pm
#661
Join Date: Sep 2012
Posts: 4,431
Another potential fraud situation here. My only other experience was from a USB Visa from Ralphs (Kroger). I've recently been buying lots of Vanilla Visas from CVS near my work, and it has always gone smoothly. I always inspect the packaging. Today, I bought one as usual, and took it to Target about 30 minutes later-- it didn't work. I tried again and again, same result. I called the phone number and was told that the card didn't activate. I am now about to email a scan of my DL, receipt, and the gift card. The CSR said that it's possible that the system simply failed to match the packaging ID with the card itself. I'm skeptical, considering the amount of fraud that goes on in SoCal. I'll keep you guys updated.
Jun 18, 2015, 12:10 am
#662
Join Date: Aug 2010
Location: PHX
Posts: 380
The packaging looked fine but I didn't examine it like I should have. They must have opened the side but I couldn't really tell from the outside. I could see the glue from the inside after it was opened.
I'm going to open these things from now on during the transaction.
Jun 23, 2015, 3:27 pm
#663
Join Date: Apr 2015
Posts: 22
Another potential fraud situation here. My only other experience was from a USB Visa from Ralphs (Kroger). I've recently been buying lots of Vanilla Visas from CVS near my work, and it has always gone smoothly. I always inspect the packaging. Today, I bought one as usual, and took it to Target about 30 minutes later-- it didn't work. I tried again and again, same result. I called the phone number and was told that the card didn't activate. I am now about to email a scan of my DL, receipt, and the gift card. The CSR said that it's possible that the system simply failed to match the packaging ID with the card itself. I'm skeptical, considering the amount of fraud that goes on in SoCal. I'll keep you guys updated.
Jun 24, 2015, 12:38 am
#664
Join Date: Jan 2014
Programs: Krisflyer, hyatt GP
Posts: 186
Purchased vgc in Ralphs, Irvine $500 on May 3rd, drained $475 same day. At the end of May, wanted to drain the remaining $25, and saw 2*$1 temporary authorization on gap.com. Couple days later the temporary auth fell off.
Jul 8, 2015, 6:31 am
#665
Join Date: Apr 2014
Posts: 1,273
I don't want to derail the thread. But if digital cards are a target, it seems likely that regular ol' VGC will be seen as a point of revenue to hit harder too.
-------------------------
Gift Card Fraud Will Be a Major Threat Post-EMV
BY CHRIS URIARTE
JUL 6, 2015 12:01am ET
As the United States begins its efforts to reduce credit card fraud by transitioning to EMV, another type of card—the online gift card—could see its fraud risk skyrocket.
EMV is set to dramatically reduce card-present—or in-store—fraud. In fact, it’s expected that by October, 70% of U.S. cards will have EMV chips, featuring technology that makes it much harder for fraudsters to swipe data.
Where will the fraudsters go instead? Online. Card-not-present, or CNP, fraud in the United Kingdom rose 79% in the first three years after EMV adoption. And it’s likely that fraudsters in the United States will follow suit, targeting one of the most popular—and most fraud-prone—products available: the online gift card.
Fraudsters typically look for products and services that allow them to monetize stolen card data quickly. That makes digital gift cards a prime target: they’re essentially a form of cash, so they can either be spent immediately or easily re-sold on both legitimate gift card swap websites and the black market.
Existing fraud detection systems aren’t sufficient to deal with the problem. Many programs require time and a physical shipping address to detect fraudulent transactions. Neither of those factors is present when selling an online gift card, which is delivered instantaneously and electronically.
This creates huge opportunities for what’s being called “fast fraud,” which occurs when perpetrators take advantage of weaknesses in online and mobile commerce security to steal digital goods. Additionally, most systems don’t track the lifecycle of a gift card—when and where it was purchased, how it was used, who used it—which is valuable information when it comes to spotting and stopping repeated fraud.
As online gift card sales rise, so too will related fraud. In 2014, consumers spent $5 billion on digital gift cards. Online gift card sales are growing by 29% a year, and 97% of the nation’s top retailers and restaurants sell their gift card online.
The trend will likely prove more costly for retailers than other forms of fraud. For example, for every dollar lost to fraud in 2014, it cost merchants $2.79, according to a study from Lexis Nexus and Javelin. However, for online merchants, every dollar lost to fraud cost $3.10.
What’s more, digital gift card fraud can place retailers in difficult situations with their customers. Fraudsters often unload stolen digital goods through legitimate websites that allow consumers to exchange unwanted gift cards. If retailers are able to determine that a card is stolen, they must decide whether to honor a fraudulent gift card that’s been sold to a well-meaning customer.
What can retailers do? A reliable fraud prevention system is key. The following tips can help retailers find the right payments solution for them:
Seek help. Whether you’re developing an in-house solution or looking for a full-service provider, find experts who understand CNP transactions and the digital payments ecosystem. Available solutions range from software featuring do-it-yourself fraud platforms to complete service providers that guarantee fraud protection and chargeback rates.
Stay skeptical. As in any industry, vendors often overpromise their capabilities. Keep an eye out for red flags or statements that sound too good to be true. Ask to see the vendor’s current list of clients to make sure the company has experience working in your industry and understands its unique needs and fraud profile. When possible, ask for referrals and interview some of the vendor’s past and present clients.
Don’t forget the customer.Some solutions prevent fraud simply by making the checkout process harder for customers. They slow down the transaction process or require additional information during check out. In today’s on-demand environment, these systems often result in dissatisfied customers and abandoned purchases. When choosing a provider, retailers should ask questions about how the solution will impact the customer. The best solution will offer the highest conversion rate for approved sales and the lowest friction checkout process possible.
Thanks to the EMV transition, online gift card fraud is poised for a dramatic rise. With the proper payments solution in place, though, retailers can stop the trend—before it costs them money as well as customers.
Chris Uriarte is chief payments officer for the Vesta Corporation.
-------------------------
Gift Card Fraud Will Be a Major Threat Post-EMV
BY CHRIS URIARTE
JUL 6, 2015 12:01am ET
As the United States begins its efforts to reduce credit card fraud by transitioning to EMV, another type of card—the online gift card—could see its fraud risk skyrocket.
EMV is set to dramatically reduce card-present—or in-store—fraud. In fact, it’s expected that by October, 70% of U.S. cards will have EMV chips, featuring technology that makes it much harder for fraudsters to swipe data.
Where will the fraudsters go instead? Online. Card-not-present, or CNP, fraud in the United Kingdom rose 79% in the first three years after EMV adoption. And it’s likely that fraudsters in the United States will follow suit, targeting one of the most popular—and most fraud-prone—products available: the online gift card.
Fraudsters typically look for products and services that allow them to monetize stolen card data quickly. That makes digital gift cards a prime target: they’re essentially a form of cash, so they can either be spent immediately or easily re-sold on both legitimate gift card swap websites and the black market.
Existing fraud detection systems aren’t sufficient to deal with the problem. Many programs require time and a physical shipping address to detect fraudulent transactions. Neither of those factors is present when selling an online gift card, which is delivered instantaneously and electronically.
This creates huge opportunities for what’s being called “fast fraud,” which occurs when perpetrators take advantage of weaknesses in online and mobile commerce security to steal digital goods. Additionally, most systems don’t track the lifecycle of a gift card—when and where it was purchased, how it was used, who used it—which is valuable information when it comes to spotting and stopping repeated fraud.
As online gift card sales rise, so too will related fraud. In 2014, consumers spent $5 billion on digital gift cards. Online gift card sales are growing by 29% a year, and 97% of the nation’s top retailers and restaurants sell their gift card online.
The trend will likely prove more costly for retailers than other forms of fraud. For example, for every dollar lost to fraud in 2014, it cost merchants $2.79, according to a study from Lexis Nexus and Javelin. However, for online merchants, every dollar lost to fraud cost $3.10.
What’s more, digital gift card fraud can place retailers in difficult situations with their customers. Fraudsters often unload stolen digital goods through legitimate websites that allow consumers to exchange unwanted gift cards. If retailers are able to determine that a card is stolen, they must decide whether to honor a fraudulent gift card that’s been sold to a well-meaning customer.
What can retailers do? A reliable fraud prevention system is key. The following tips can help retailers find the right payments solution for them:
Seek help. Whether you’re developing an in-house solution or looking for a full-service provider, find experts who understand CNP transactions and the digital payments ecosystem. Available solutions range from software featuring do-it-yourself fraud platforms to complete service providers that guarantee fraud protection and chargeback rates.
Stay skeptical. As in any industry, vendors often overpromise their capabilities. Keep an eye out for red flags or statements that sound too good to be true. Ask to see the vendor’s current list of clients to make sure the company has experience working in your industry and understands its unique needs and fraud profile. When possible, ask for referrals and interview some of the vendor’s past and present clients.
Don’t forget the customer.Some solutions prevent fraud simply by making the checkout process harder for customers. They slow down the transaction process or require additional information during check out. In today’s on-demand environment, these systems often result in dissatisfied customers and abandoned purchases. When choosing a provider, retailers should ask questions about how the solution will impact the customer. The best solution will offer the highest conversion rate for approved sales and the lowest friction checkout process possible.
Thanks to the EMV transition, online gift card fraud is poised for a dramatic rise. With the proper payments solution in place, though, retailers can stop the trend—before it costs them money as well as customers.
Chris Uriarte is chief payments officer for the Vesta Corporation.
Jul 9, 2015, 12:06 am
#666
Join Date: Mar 2013
Posts: 11
Fraud in WA state
Fraud report in WA state. Last Saturday on July 4th I bought 2x$500 Vanilla gift cards (Bancorp) in Walgreens and 2x$500 Visa GoWallet (Sunrise) cards in Safeway. I didn't touch the cards until the next day when I went to Target. Sitting in the car I opened all the cards and didn't notice anything strange - all the packaging seemed fine. I didn't remember if Vanilla gift cards needed PIN to be set in advance, so I went to vanillavisa.com to check and to my surprise found that gift card balance on one of the Vanilla cards was $0! The card had $5 "USA*Innovative Vending" transaction on July 4th night, and then two uneven transactions totaling $495 in two book stores near Spokane, WA (~280 miles away from the store where I bought the cards) on July 5th. I immediately contacted Bancorp CS and reported fraud. The other Vanilla gift card was fine, so I went to Target and unloaded it successfully. I also successfully unloaded one of the GoWallet Visas, but the second one gave an error! I logged on to check the balance and it was $0 too! A different type of gift card bought in another store had also been stolen! It also had the same $5 "USA*Innovative Vending" transaction on July 4th night and then two transactions on July 5th near Spokane, WA: one in REI and another in the same bookstore. What's interesting is that transactions were done 3 min apart in the stores which are ~20 min drive apart. How could it be?
Trying to wrap my head around at how that is all possible. And how did fraudsters get the card number? So, they must've stolen gift cards from the store, opened them, created duplicate cards, repackaged them factory-like and put back in the store? As I said, packaging looked completely normal and had all the usual glue, etc., no indication of tampering, so beware.
Some questions:
1. How to safeguard from this? Somebody suggested changing PIN right after activating the gift card but can't fraudsters just use the card as a CC?
2. This is stupid but I am now struggling getting instructions on disputing transactions with Bancorp. They created a ticket for my case and said they are sending dispute instructions to my email. I waited a day but didn't get any mail from them, called again, confirmed that they have correct spelling of my email and that they are going to resend the instructions, next day again i am not getting anything, i called again and asked to send to a different email address - same story. I never had trouble receiving emails before and of course i checked Spam folder + the fact that two email addresses are not working makes me think that there is an issue on their side. But they only keep telling to check Spam folder, etc. Does anyone by any chance have Vanilla visa dispute instructions?
3. Any other suggestions how to get my $1000 back?
Thanks.
Trying to wrap my head around at how that is all possible. And how did fraudsters get the card number? So, they must've stolen gift cards from the store, opened them, created duplicate cards, repackaged them factory-like and put back in the store? As I said, packaging looked completely normal and had all the usual glue, etc., no indication of tampering, so beware.
Some questions:
1. How to safeguard from this? Somebody suggested changing PIN right after activating the gift card but can't fraudsters just use the card as a CC?
2. This is stupid but I am now struggling getting instructions on disputing transactions with Bancorp. They created a ticket for my case and said they are sending dispute instructions to my email. I waited a day but didn't get any mail from them, called again, confirmed that they have correct spelling of my email and that they are going to resend the instructions, next day again i am not getting anything, i called again and asked to send to a different email address - same story. I never had trouble receiving emails before and of course i checked Spam folder + the fact that two email addresses are not working makes me think that there is an issue on their side. But they only keep telling to check Spam folder, etc. Does anyone by any chance have Vanilla visa dispute instructions?
3. Any other suggestions how to get my $1000 back?
Thanks.
Jul 9, 2015, 6:46 pm
#667
Join Date: Sep 2011
Location: USA
Posts: 1,179
Another potential fraud situation here. My only other experience was from a USB Visa from Ralphs (Kroger). I've recently been buying lots of Vanilla Visas from CVS near my work, and it has always gone smoothly. I always inspect the packaging. Today, I bought one as usual, and took it to Target about 30 minutes later-- it didn't work. I tried again and again, same result. I called the phone number and was told that the card didn't activate. I am now about to email a scan of my DL, receipt, and the gift card. The CSR said that it's possible that the system simply failed to match the packaging ID with the card itself. I'm skeptical, considering the amount of fraud that goes on in SoCal. I'll keep you guys updated.
Jul 10, 2015, 6:23 pm
#668
Join Date: Mar 2011
Location: SAN
Programs: Delta Gold. Hilton Diamond. Hyatt Explorist.
Posts: 1,674
The best safeguard is to drain the gift cards ASAP after you buy them.
Jul 12, 2015, 9:35 pm
#669
Join Date: Sep 2012
Posts: 4,431
I got an email the next day that my GC would be funded $500. Sure enough, when I called to check the balance, the money was there. I loaded it to RB as soon as I could, no issues.
I still don't know what happened, whether the card's security was compromised or if it was simply a system error on their part. I've bought several more from that store without issue. I was shocked at how quickly the response came.
I still don't know what happened, whether the card's security was compromised or if it was simply a system error on their part. I've bought several more from that store without issue. I was shocked at how quickly the response came.
Jul 12, 2015, 9:56 pm
#670
Join Date: Sep 2012
Posts: 4,431
Just bought a USB MC from my local Ralphs. I inspected the package very closely and it looked fine. The expiration date on the outside packaging said 6/23. I bought the card and immediately opened it. The exp date on the card itself showed 7/23. I immediately called the phone number and the funds were there. I changed the PIN and immediately unloaded it to RB, which was successful. I don't know if that was simply a mistake the gift card company made, or if my card was tampered with, but thankfully everything worked out. Anybody ever noticed this difference in date before?
Aug 28, 2015, 2:20 pm
#674
Join Date: May 2005
Location: DFW
Programs: AA Plat
Posts: 271