Beware Gift Card Ripoffs This Holiday Season

They are amongst the easiest Christmas gifts to give and to get, avoiding a lot of shopping hassles and choices and leaving the final decision up to the recipient. Gift cards have become one of the biggest sellers for the holidays and now that they never expire in Ontario, they're the gift that can keep on giving.

But while they're still a relatively safe and decent present over all, they're not perfect. There's not much recourse for you if a store or chain suddenly goes out of business.

And scam artists have been able to find ways to manipulate the cards you buy.

Consumer Specialist Jee-Yun Lee has some advice on what to watch for to protect yourself and your plastic present on CityNews at Five and Six and also brings you stories of those who were taken by surprise when they tried to redeem their cards.

Here are just a few things to watch for when you're buying one of these small but valuable items.

How Do Thieves Take Advantage Of The Cards?

Like most things involving the unscrupulous, it's pretty sneaky. Every card comes with a series of numbers so when it's activated by a store, they'll know exactly how much the card is worth. Thieves write down the number and then call the customer service department of the local chain and ask how much of a balance is left on the card.

When it's confirmed the plastic has been activated, they go shopping online, using the number and the amount to buy whatever they want, often leaving an untraceable path behind.

What Can You Do To Stop Them?

There are several ways to protect yourself and the recipient.

• Buy gift cards from the person behind the counter if you can. It's safer than buying it off the rack.
• Opt for gift cards that have a protective backing or a scratch-off PIN number so that only the purchaser can use it.
• Check the packaging or the back of the card for tampering before you purchase the card.

Source: Ontario Government Consumer Services

Other tips:

Don't buy cards from auction sites. You never knew what you're getting.

Request that the card you're using be scanned as you watch. It will better allow you to keep track of the amount and to ensure that it hasn't been tampered with.

Keep your receipt for as long as the card has money on it. Some retailers will replace a lost or stolen card with the amount owing.

See the rules surrounding gift cards in Ontario here