Your Financial Future: Giving gift cards safely
Over the last few years one gift option that has become very popular is giving gift cards. They let the gift receiver purchase what they want most, are always the right size, quick to buy and easy to wrap or mail.
Sounds like a pretty good option; but, because so much money is spent on gift cards, crooks have discovered this is a good area in which to hunt for victims.
Today we are going to discuss some of the ways gift cards are compromised so that you can keep from being scammed. It is important to be careful where you purchase your gift card. Buy it from a recognized and trusted source. Sometimes you see discounted offers on the internet to save money when buying the cards. While we all like to save money, be careful. It is easier to scam someone if they do not have to look you in the eye and they can be very difficult to find if there is a problem.
There can be some legitimate secondary market from people who received gift cards they will never use. They may be willing to take less since they often cannot return the card for a cash refund; however, there is a much greater opportunity for problems. The balance may have been drained or the card may not have been activated. Be careful of flea markets and other questionable sites.
When buying a card from a known source, be sure and inspect the packaging. Often crooks will carefully open the card and copy down the numbers. They may carefully scratch off the coating covering the pin number. You may not notice it is missing or they can buy replacement coverings. If the card looks tampered with pick a different one. Sometimes it is suggested that you select a card further back in the stack or on the hook. They make it a little harder for scammers to steal the information. Also buying from a rack at the front of the store may be a little safer.
Thieves actually use software to frequently check card numbers to see if they have been activated. When they show up as activated, they drain the money value quickly making your card worthless. Using the cards quickly can help to reduce the crook蘑菇视频 opportunity. Because of this, buying Christmas gift cards at the last minute may offer some protection.
Check the activation code printed on your receipt to make sure it matches the numbers on the gift card. If it does not, there is a problem. The card you just purchased may have already had value removed. Be observant at the checkout. While this is not usually the biggest problem area, some clerks have been caught switching cards at the cash register.
You should never have to provide personal information such as a Social Security number or home information when buying or using a gift card. The IRS or any government agency will never ask you to make payments to them with gift cards.
Gift cards can be a great choice, but use common sense and be careful.
Your Financial Future is written by certified financial planner Gary W. Boatman, MBA and CFP, who also wrote the book, 鈥淵our Financial Compass: Safe Passage Through The Turbulent Waters of Taxes, Income Planning and Market Volatility.鈥� If there is an area that you would like to see discussed in the column, send your suggestions to gary@BoatmanWealthManagement.com.