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 !!!
Nov 17, 2017, 1:08 am
#931
Join Date: Jan 2014
Programs: Krisflyer, hyatt GP
Posts: 186
bought mc at staples, no sign of tampering, glue looks normal. Went to recycling center but the terminal didn't show change payment method therefore i couldn't recycle it right away.
2 weeks later when i want to use the mc, fraudster use it at in&out (fast-food restaurant) for $100 + ~$30, charges still show as pending. Called USBank and they asked me to call again after the charges posted. Called again in couple days and USBank asked me to faxed details + reason why i dispute the transaction.
it's been a month and no follow up yet, will call them n ask for update.
2 weeks later when i want to use the mc, fraudster use it at in&out (fast-food restaurant) for $100 + ~$30, charges still show as pending. Called USBank and they asked me to call again after the charges posted. Called again in couple days and USBank asked me to faxed details + reason why i dispute the transaction.
it's been a month and no follow up yet, will call them n ask for update.
Nov 18, 2017, 12:51 am
#932
Join Date: Aug 2011
Posts: 32
bought mc at staples, no sign of tampering, glue looks normal. Went to recycling center but the terminal didn't show change payment method therefore i couldn't recycle it right away.
2 weeks later when i want to use the mc, fraudster use it at in&out (fast-food restaurant) for $100 + ~$30, charges still show as pending. Called USBank and they asked me to call again after the charges posted. Called again in couple days and USBank asked me to faxed details + reason why i dispute the transaction.
it's been a month and no follow up yet, will call them n ask for update.
2 weeks later when i want to use the mc, fraudster use it at in&out (fast-food restaurant) for $100 + ~$30, charges still show as pending. Called USBank and they asked me to call again after the charges posted. Called again in couple days and USBank asked me to faxed details + reason why i dispute the transaction.
it's been a month and no follow up yet, will call them n ask for update.
Nov 18, 2017, 7:03 am
#933
Join Date: Jan 2017
Posts: 9
It has happened to me as well. I bought the card on 11/11 at a Safeway in SF East Bay, black package, metabank. I kept it for 6 days, then I went to Walmart to swipe it and nothing shows up. It was demagnetized. The glue was different. It looks like permanent glue, and it was partially still on the back of the card. The package looked pristine when I bought it, but I didn't look that closely.
Anyway I tested out the card at a Safeway as well, No luck. So I came home and check on the balance, and $480+ were spent at a local Walgreens in Fremont. So the thieves are in this area.
I called the number on the back of the card, and closed the card. They will send a replacement card for what is left on the card, and investigate for the Walgreens transaction. And hopefully they will confirm the fraud. I have all the documentation (receipts, original package, credit card statement, etc). I sent it all and file a complain form.
We need to be on the lookout for these compromised cards, because if the thieves get away with it, they will increase the number of frauds everywhere.
Anyway I tested out the card at a Safeway as well, No luck. So I came home and check on the balance, and $480+ were spent at a local Walgreens in Fremont. So the thieves are in this area.
I called the number on the back of the card, and closed the card. They will send a replacement card for what is left on the card, and investigate for the Walgreens transaction. And hopefully they will confirm the fraud. I have all the documentation (receipts, original package, credit card statement, etc). I sent it all and file a complain form.
We need to be on the lookout for these compromised cards, because if the thieves get away with it, they will increase the number of frauds everywhere.
I had a similar issue recently. Got 3 visa gift cards at a North CA Safeway, which I bought hundreds of cards before without any issue. Also noticed super sticky glue in the package. When I tried to use these cards at Walmart, nothing happens after the swipe. Maybe the magnetic strip has no information. Tried to buy a candy at self check out, still nothing happens after a few swipes. Then they all get drained at Sams Club before I have chance to call the CSR to get the replacement card.
Not sure it is one time event or I should not purchase from that store again.
Not sure it is one time event or I should not purchase from that store again.
Nov 19, 2017, 6:31 pm
#934
Join Date: Feb 2015
Posts: 910
Not encouraging to hear US Bank giving people the runaround on compromised VGCs, as if it is the legitimate buyers' fault. Months ago during one of the OD/OM specials I ended up getting two compromised ones, but my experience with US Bank was painless once I got a hold of a human. They confirmed the cards' info and sent me replacements.
Maybe the reason for the different treatment was how those cards were compromised and that fact that US Bank probably didn't lose any money on them. I think the thieves bot-guessed/generated the card numbers (of what's now older-looking US Banks VGCs) and would 'tap' them (attempting small dollar transactions) to see if they were loaded. If they got lucky and hit the cards at the right time (shortly after them being loaded) they'd use them. Eventually US Bank got ahead of this issue by preemptively cancelling any cards that had been 'tapped' prior to being loaded.
I don't know how they are compromising these cards now, but if there's no physical tempering with it would be hard to look out for bad cards. Unless we figure out a pattern about either the packaging of the compromised cards or some of the numbers in the back (the ones exposed when the cashier pulls the tab to scan the cards) assuming they're different/unique. If the difference was in the numbers at least people would know to liquidate them right away.
Maybe the reason for the different treatment was how those cards were compromised and that fact that US Bank probably didn't lose any money on them. I think the thieves bot-guessed/generated the card numbers (of what's now older-looking US Banks VGCs) and would 'tap' them (attempting small dollar transactions) to see if they were loaded. If they got lucky and hit the cards at the right time (shortly after them being loaded) they'd use them. Eventually US Bank got ahead of this issue by preemptively cancelling any cards that had been 'tapped' prior to being loaded.
I don't know how they are compromising these cards now, but if there's no physical tempering with it would be hard to look out for bad cards. Unless we figure out a pattern about either the packaging of the compromised cards or some of the numbers in the back (the ones exposed when the cashier pulls the tab to scan the cards) assuming they're different/unique. If the difference was in the numbers at least people would know to liquidate them right away.
Nov 19, 2017, 8:42 pm
#935
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,056
I don't know how they are compromising these cards now, but if there's no physical tempering with it would be hard to look out for bad cards. Unless we figure out a pattern about either the packaging of the compromised cards or some of the numbers in the back (the ones exposed when the cashier pulls the tab to scan the cards) assuming they're different/unique. If the difference was in the numbers at least people would know to liquidate them right away.
Nov 20, 2017, 5:31 am
#936
Join Date: Aug 2013
Posts: 1,207
In my case, the packaging looked normal, but the card had obviously been substituted. It seemed like superglue was affixing the terms and conditions to the back of the card versus the silicone ovals. Fortunately, InComm was able to activate the OV that was in the packaging. A best practice with the OVs was you could see the expiration date on the card and compare it against the printed expiration date on the back of the packaging. While it wasn't a 100% guarantee, at least in my case, the expiration date on the physical card that didn't activate did not match the expiration date on the back of the packaging that contained the card. What I really wish these places would do is have it be line Simon Malls where the cashier rings up the physical card at the time of activation.
Nov 20, 2017, 7:19 am
#937
Join Date: Jun 2017
Posts: 86
An affidavit is just a written statement testifying to fact(s). I'm not sure if they list the "facts" they are looking for in their template, but you should be able to just write your own, get it notarized and submit it. Generally you should include ALL relevant details and nothing else.
Nov 20, 2017, 7:54 am
#938
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,056
I was surprised that InComm activated the card in the packaging versus sending a new card, and I realized that the thieves had access to that number as well. This happened overnight without me realizing it, so I woke up to the card being active with the balance. Fortunately, there had been no unauthorized purchases, so I wasn't out any money. The incident more or less stopped me from buying more OVs as I deemed the risk of something going wrong to be too high.
Dec 11, 2017, 3:12 pm
#939
Join Date: May 2014
Location: LAX
Programs: AA, UA, DL, NSA, CIA, MIB
Posts: 537
I had 2 cards tampered with that I bought at Ralphs in S. Cal before Thanksgiving. I went to use them at a WM and they wouldn't read in the POS. I went to a 2nd and 3rd WM and same thing. This is when I called the 877 on the back. They said they would send me new cards. When those arrived about 7 days later I called to activate them. Both had been drained! Pennies left on them. I had even changed the PIN after the 1st WM. I had to call and go through the Fraud thing, they said they'd said they're sending me the paper work to fill out and return to them. I still haven't seen the paper work......2 weeks now. How long does this take?
*the fraud dispute letters arrived later today*
*the fraud dispute letters arrived later today*
Last edited by cajunguy; Dec 11, 2017 at 4:27 pm Reason: **Update**
Dec 11, 2017, 3:21 pm
#940
Join Date: Aug 2015
Posts: 2,061
I had 2 cards tampered with that I bought at Ralphs in S. Cal before Thanksgiving. I went to use them at a WM and they wouldn't read in the POS. I went to a 2nd and 3rd WM and same thing. This is when I called the 877 on the back. They said they would send me new cards. When those arrived about 7 days later I called to activate them. Both had been drained! Pennies left on them. I had even changed the PIN after the 1st WM. I had to call and go through the Fraud thing, they said they'd said they're sending me the paper work to fill out and return to them. I still haven't seen the paper work......2 weeks now. How long does this take?
Dec 11, 2017, 3:25 pm
#941
Join Date: May 2014
Location: LAX
Programs: AA, UA, DL, NSA, CIA, MIB
Posts: 537
I bought the original cards on a Monday and went to 1st WM the next day, I changed the PIN after that visit. I went to the next 2 WM about 3 or 4 days later. Yes I had to activate the new cards that were sent as replacements.
Dec 11, 2017, 4:06 pm
#942
Join Date: Sep 2014
Posts: 1,837
When were they drained/used? before or after they sent you replacements?
Dec 11, 2017, 4:20 pm
#943
Join Date: May 2014
Location: LAX
Programs: AA, UA, DL, NSA, CIA, MIB
Posts: 537
Is there a way to lock the funds should something like this happen again?
Dec 11, 2017, 6:03 pm
#944
Join Date: Mar 2011
Location: SAN
Programs: Delta Gold. Hilton Diamond. Hyatt Explorist.
Posts: 1,672
They were drained after I called to report the problem. I checked the balance when I called, it's part of the process to get to a live agent. I didn't check the balance after that call and this was when they were drained.
Is there a way to lock the funds should something like this happen again?
Is there a way to lock the funds should something like this happen again?
Dec 11, 2017, 6:32 pm
#945
Join Date: Aug 2015
Posts: 2,061
if were u, go ahead to file a report/dispute with cfpb; will likely get replacement cards sooner