Gift cards are a fast, convenient go-to for holiday gifting — but local police are warning Pittsburgh shoppers that they could also be a gateway to scams.
On Tuesday, the Verona Police Department said it was alerted by the Giant Eagle in the River Town Shopping Center that several customers there had fallen victim to a gift card scam.
Police Chief Thomas Dessell said scammers are physically stealing gift cards and their PINs. Once an unsuspecting shopper buys and activates the card, the scammer immediately wipes out the balance.
So far, Verona police have identified 15 gift cards that have been compromised, with “several thousand dollars” stolen, Dessell said.
It is unclear the total amount stolen so far.
However, Giant Eagle said in a statement that if a customer unknowingly purchases a tampered-with gift card, the store will reimburse the cost.
Jannah Drexler, a spokeswoman for the company, emphasized that this type of gift card scam — involving physical tampering — is not unique to Giant Eagle.
“Any retailer that sells third-party gift cards is subject to this risk,” Drexler said in an email to reporters.
In January, TribLive reported that 20-year-old Zhixiang Chen, was sentenced to 1 1/2 to 3 years, after attempting to leave the Pittsburgh Mills Walmart with 126 Apple gift cards — worth nearly $9,000 — stuffed into his pants and jacket. Once out of the store, Chen altered the cards to redirect funds to himself before placing the empty balanced cards back in the store, police said.
During the investigation, police said they linked Chen with a gift card draining scheme that took place over several months at at least six Walmart stores in Western Pennsylvania.
Gift card tampering can be difficult to detect, Giant Eagle Supermarket said in a statement on Friday.
“If anything about a gift card or its packaging appears unusual, customers are encouraged to notify a Giant Eagle Team Member immediately for assistance,” the statement said.
The Federal Trade Commission suggests keeping a record of the gift card purchase. “Take a picture of the gift card and store receipt with your phone. The number on the gift card and store receipt will help you file a report with the gift card company if you lose the gift card or if you need to report fraud,” the Federal Trade Commission said in a customer advice news release.
The Verona Police Department put a public warning on social media about the incidents.
Police said gift card purchasers should check the scratch-off or peel-off area covering the PIN number on the back of the card. If there are scratches, peeling or a sticky residue it may indicate that a different sticker has been placed over the original PIN area.
“If the card comes in an envelope or on a cardboard backing, check for any signs of damage or resealing … loose or damaged packaging, tears or a different type of tape used to seal it,” the post said.
Police also recommend reducing the risk of fraud by buying gift cards kept behind the counter or in locked display cases. If cards are only available on an open rack, shoppers should choose one from the back of the stack.
On Friday, both local police and Giant Eagle Supermarket were continuing to investigate the source of the gift card scams.
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