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 !!!
Aug 21, 2017, 2:47 pm
#916
Join Date: Oct 2015
Location: NRT
Programs: UA gold
Posts: 135
Think I got a winner at Vons today. Packaging looked fine, but when I opened it to liquidate, I noticed that the glue holding the instruction sheet to the card was the wrong kind. Rather than the usual rubber cement-type substance, it seemed to be a water-based "Elmer's glue" type adhesive.
Luckily, I was already on my way to liquidate, and sure enough...the card wouldn't swipe. Called in and got a replacement sent out. Glad I don't hold these things more than 30 mins...no idea what happens to people who actually use these gift cards as intended (ie as gifts, which means they sit around for weeks/months).
Luckily, I was already on my way to liquidate, and sure enough...the card wouldn't swipe. Called in and got a replacement sent out. Glad I don't hold these things more than 30 mins...no idea what happens to people who actually use these gift cards as intended (ie as gifts, which means they sit around for weeks/months).
Aug 23, 2017, 3:00 pm
#917
Join Date: Mar 2009
Location: LAX
Posts: 3,267
Aug 23, 2017, 3:05 pm
#918
Join Date: Mar 2009
Location: LAX
Posts: 3,267
My guess is people using these cards as gifts typically get a fixed value card, not the variables.
I'm glad you were able to get a replacement sent quickly. Incomm does a pretty good job of sending a replacement and/or activating the on in the packaging if it's one of their cards. It's an inconvenience, but at least you're not out any money.
I'm glad you were able to get a replacement sent quickly. Incomm does a pretty good job of sending a replacement and/or activating the on in the packaging if it's one of their cards. It's an inconvenience, but at least you're not out any money.
Aug 23, 2017, 3:46 pm
#919
Join Date: Oct 2015
Location: NRT
Programs: UA gold
Posts: 135
Aug 23, 2017, 4:46 pm
#920
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,059
Ya I agree. I've had 3 cards replaced over the last 2-3 years, so not a bad record. One seemed to be legitimately defective (dead magstripe) and two had signs of tampering (3 digit cvc sanded off on one, and the recent incident with the water-based glue). All were replaced without issue. It's still kind of unnerving to know that there's a basically untracable $500 card working its way to me, though. I'll sleep better when I've liquidated it!
In addition to inspecting the perimiter of the package for signs of tampering, it is possible to partially see the expiration date through the window for the OV cards that have them if you tilt the packaging at an angle. It certainly doesn't rule out all card switches, but you can catch obvious disparities.
Aug 23, 2017, 9:52 pm
#921
Join Date: Jan 2011
Posts: 749
Ya I agree. I've had 3 cards replaced over the last 2-3 years, so not a bad record. One seemed to be legitimately defective (dead magstripe) and two had signs of tampering (3 digit cvc sanded off on one, and the recent incident with the water-based glue). All were replaced without issue. It's still kind of unnerving to know that there's a basically untracable $500 card working its way to me, though. I'll sleep better when I've liquidated it!
Sep 1, 2017, 12:18 pm
#922
Join Date: Mar 2009
Location: LAX
Posts: 3,267
I originally called them on 8/21 to report the broken card, and then I went hiking in the Sierra. Got back on 8/30 and nothing (no chance of mail thievery...my mom was here to grab the mail every day). I called to inquire today, and they said it was mailed out on 8/21, but they can't send a replacement until Monday or Tuesday.
I suppose there's very slight chance it could come in tomorrow's mail, but I doubt it. Even if it was created on 8/21 and not mailed for a few days, it would still be here by now with first class mail.
I didn't ask, but I think the CSR would have mentioned it if the card had been activated, so at least there's that.
Sep 20, 2017, 7:00 pm
#923
Join Date: Sep 2014
Location: NYC
Posts: 498
Got an OV from CVS today and within an hour someone drained it with an audio company charge. Called and got the dispute ticket going, but they said up to 90 days. Anyone have some recent experiences with this? Checked back some pages and searched, but found nothing on OVs.
Sep 20, 2017, 11:06 pm
#924
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,059
Got an OV from CVS today and within an hour someone drained it with an audio company charge. Called and got the dispute ticket going, but they said up to 90 days. Anyone have some recent experiences with this? Checked back some pages and searched, but found nothing on OVs.
Nov 16, 2017, 5:28 pm
#925
Join Date: Oct 2009
Posts: 152
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.
About a month ago I bought 10 $500 visa gift cards for a total of $5000 at a Ralphs in Southern California, and they were all tampered with, mine had some of that super sticky glue that couldn't be pealed off of the card at all, and the expiration dates on the outside of the package did not match the expiration date on the card itself.
Tried to use at Walmart to buy money orders but got a "debit not available error" on the cards I tried. Checked balances on all of the cards and the site gave some sort of card not valid error. Called the support number and they said that the cards were not activated properly and that I needed to fax in the card information and they would activate them. I faxed the info in and checked the next morning and the cards were activated.
Later that afternoon after work I tried to use the cards to buy money orders like I had originally planned, but the cards did not work yet again. Checked the balance online and they were all used at a Rite Aid store in Hemet. Knew at this point it was going to be a major headache so I called the number I had called the previous day to get the cards activated and was told to fax the card information.
A few days later I received a call from US Bank from a very unfriendly lady who stated that because the cards were used with a PIN number and run as debit at the Rite Aid store, I had no recourse and the cards could not be reissued. She basically indirectly accused me of being the one that actually used the cards and I was just trying to get my money back.
For the heck of it, knowing that the actual bank branch would not be able to do anything about my problem, I went to one of those grocery store US Bank locations and told them the story. The man at the bank said that the person that called me was incorrect about me having no recourse, explained the Visa zero liability policy, etc. Told me to keep calling them to press the issue. Basically this was a waste of time but it still satisfied me a bit.
So I called the gift card number again and was told to fax the information again. Again, a few days later I received a call stating that because because they were run as debit with a PIN number used, I was the only one that could have made the purchases and once again I was indirectly accused of using the cards at the Rite Aid store myself.
I purchased the cards at Ralphs with an American Express card, and after realizing that I was not going to get anywhere with US Bank I started the dispute process with Amex. Called them and explained what had happened, and later uploaded copies of my receipts from Ralphs, images of the cards themselves with the yellowish glue that could not be peeled off, images of the packaging with an expiration date different than what was on the cards themselves, screenshots of the transaction logs for each card, and a copy of a news article about gift card fraud in California. Was issued a temporary credit after my initial call.
About a month later, today, I received notice from American Express that the dispute was decided in my favor and the credit was made permanent. I feel bad that in the end, Ralphs was the one to be out the money. I much rather would have had US Bank been the ones to eat the loss, but Ralphs is negligent due to the large amount of Visa gift card fraud occurring at their stores, and them doing seemingly nothing to stop it. I informed the manager of the store about what had happened and he shrugged it off, telling me to take up the issue with the "gift card company", and also refused to take the remaining stock of Visa gift cards off of the shelves, his reason being that he had no proof that they were tampered with and said the packaging on all of them "looked fine".
I will never buy another gift card of any type from a grocery store after this experience, I will buy all my Visa gift cards from Simon malls, where I have never had a problem before in the past, and I like how they keep the cards inaccessible behind the counter before purchase (yes I am aware this does not prevent the Simon cashier from skimming the cards). As an added bonus, their fee ($3.95) is the lowest that I am aware of.
Tried to use at Walmart to buy money orders but got a "debit not available error" on the cards I tried. Checked balances on all of the cards and the site gave some sort of card not valid error. Called the support number and they said that the cards were not activated properly and that I needed to fax in the card information and they would activate them. I faxed the info in and checked the next morning and the cards were activated.
Later that afternoon after work I tried to use the cards to buy money orders like I had originally planned, but the cards did not work yet again. Checked the balance online and they were all used at a Rite Aid store in Hemet. Knew at this point it was going to be a major headache so I called the number I had called the previous day to get the cards activated and was told to fax the card information.
A few days later I received a call from US Bank from a very unfriendly lady who stated that because the cards were used with a PIN number and run as debit at the Rite Aid store, I had no recourse and the cards could not be reissued. She basically indirectly accused me of being the one that actually used the cards and I was just trying to get my money back.
For the heck of it, knowing that the actual bank branch would not be able to do anything about my problem, I went to one of those grocery store US Bank locations and told them the story. The man at the bank said that the person that called me was incorrect about me having no recourse, explained the Visa zero liability policy, etc. Told me to keep calling them to press the issue. Basically this was a waste of time but it still satisfied me a bit.
So I called the gift card number again and was told to fax the information again. Again, a few days later I received a call stating that because because they were run as debit with a PIN number used, I was the only one that could have made the purchases and once again I was indirectly accused of using the cards at the Rite Aid store myself.
I purchased the cards at Ralphs with an American Express card, and after realizing that I was not going to get anywhere with US Bank I started the dispute process with Amex. Called them and explained what had happened, and later uploaded copies of my receipts from Ralphs, images of the cards themselves with the yellowish glue that could not be peeled off, images of the packaging with an expiration date different than what was on the cards themselves, screenshots of the transaction logs for each card, and a copy of a news article about gift card fraud in California. Was issued a temporary credit after my initial call.
About a month later, today, I received notice from American Express that the dispute was decided in my favor and the credit was made permanent. I feel bad that in the end, Ralphs was the one to be out the money. I much rather would have had US Bank been the ones to eat the loss, but Ralphs is negligent due to the large amount of Visa gift card fraud occurring at their stores, and them doing seemingly nothing to stop it. I informed the manager of the store about what had happened and he shrugged it off, telling me to take up the issue with the "gift card company", and also refused to take the remaining stock of Visa gift cards off of the shelves, his reason being that he had no proof that they were tampered with and said the packaging on all of them "looked fine".
I will never buy another gift card of any type from a grocery store after this experience, I will buy all my Visa gift cards from Simon malls, where I have never had a problem before in the past, and I like how they keep the cards inaccessible behind the counter before purchase (yes I am aware this does not prevent the Simon cashier from skimming the cards). As an added bonus, their fee ($3.95) is the lowest that I am aware of.
Nov 16, 2017, 9:23 pm
#926
Join Date: Mar 2011
Location: SAN
Programs: Delta Gold. Hilton Diamond. Hyatt Explorist.
Posts: 1,673
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 16, 2017, 10:25 pm
#927
Join Date: Aug 2011
Posts: 32
I brought 2 Mastercards from Staples, packaging looked fine. One worked, but the other was already drained. Opened a dispute with US Bank and they are just giving me the run-around. They said they mailed me the affidavit twice, but I never got it. So now they said they will fax me, again no fax. Apparently if I don't send in the affidavit in a couple of weeks, my case will be dropped. Anybody else experience this? Any tips on what I need to do? Planning to call tomorrow and demand they fax me then and there. Sucks, as who the hell has a fax machine. Need to do it at work.
Nov 16, 2017, 10:40 pm
#928
Join Date: Mar 2011
Location: SAN
Programs: Delta Gold. Hilton Diamond. Hyatt Explorist.
Posts: 1,673
I brought 2 Mastercards from Staples, packaging looked fine. One worked, but the other was already drained. Opened a dispute with US Bank and they are just giving me the run-around. They said they mailed me the affidavit twice, but I never got it. So now they said they will fax me, again no fax. Apparently if I don't send in the affidavit in a couple of weeks, my case will be dropped. Anybody else experience this? Any tips on what I need to do? Planning to call tomorrow and demand they fax me then and there. Sucks, as who the hell has a fax machine. Need to do it at work.
If all else fails with US Bank, file a complaint with CFPB.
Nov 16, 2017, 10:49 pm
#929
Join Date: Jul 2009
Location: SJC
Programs: AA, AS, Marriott
Posts: 6,059
I brought 2 Mastercards from Staples, packaging looked fine. One worked, but the other was already drained. Opened a dispute with US Bank and they are just giving me the run-around. They said they mailed me the affidavit twice, but I never got it. So now they said they will fax me, again no fax. Apparently if I don't send in the affidavit in a couple of weeks, my case will be dropped. Anybody else experience this? Any tips on what I need to do? Planning to call tomorrow and demand they fax me then and there. Sucks, as who the hell has a fax machine. Need to do it at work.
Nov 16, 2017, 10:59 pm
#930
Join Date: Aug 2011
Posts: 32
They need to fax me the affidavit, not the other way around, since they said they mailed it to me twice, but I never got it. They told me they will fax it within 48 hours, which sucks because I do not have a fax machine and have to use the one at work. I will check out the free fax service. I remember looking before and the prices were pretty crazy, like you had to subscribe for $10 a month.